ＩＨＩ（7013） – Financial Results for FY2021 (IFRS) (for the year ended March 31, 2022)

Financial Results for FY2021 (IFRS)(for the year ended March 31, 2022)May 10, 2022Table of ContentsCopyright © 2022 IHI Corporation All Rights Reserved.１. Consolidated Results for FY2021Overview……………………………………………………………………………………………………………………4Summary of Financial Results……………………………………………………………………………………………………………………………………….5Financial Results by Segment………………………………………………………………………………………..6Finance Income / Costs etc…………………………………………………………………………………11Financial Position……………………………………………………………………………………………………………………………………………………………………………….12Cash Flows………………………………………………………………………………………………………13Supplementary Information……………………………………………………………………………………………………………………..14２. Forecasts of the Consolidated Results for FY2022Summary of Forecasts for FY2021…………………………………………………………………………………………..17Forecasts for FY2022 by Segment…………………………………………………………………………………………..18Cash Flows…………………………………………………………………………………………..21３. Financial Results by SegmentResources, Energy and Environment………………………………………………………………………………23Social Infrastructure and Offshore Facilities……………………………………………………………………………………………………..25Industrial Systems and General-Purpose Machinery………………………………………………………………………………27Aero Engine, Space and Defense……………………………………………………………………………………………29　 ………………………………………………………………………………311. Consolidated Results for FY2021Copyright © 2022 IHI Corporation All Rights Reserved.31. Consolidated Results for FY2021Overview◼ Operating profit achieved the forecasted target of the consolidated results through the steady implementation of various measures set forth in “Project Change”.◼ Overall, the performance remained steady in the three segments of Resources, Energy and Environment, Social Infrastructure and Offshore Facilities, and Industrial Systems and General Purpose Machinery. However, in Vehicular turbochargers, the impact of the lockdown in China is beginning to become apparent, in addition to the delay in recovery from reduced automobile production caused by the shortage of semiconductors, etc. ◼◼In the segment of Aero Engine, Space and Defense, the recovery trend in demand for aero transportation remained unchanged in the fourth quarter, and sales of spare parts in Civil aero engines progressed as expected.Cash flows from operating activities were significantly excess of incomes due to reduction effort on working capital, such as promoting customer’s payments and inventory reduction.Copyright © 2022 IHI Corporation All Rights Reserved.41. Consolidated Results for FY2021Summary of Financial Results（In billion yen）Top left of table ：Forecast announced on February 8, 2022. Same for subsequent slides. Note: Average FX rate FY2020 US$ 1.00 = ¥106.40, FY2021 US$ 1.00 = ¥112.68Result of Performance recovery drivers 38.0(12.3)8.081.4(3.3)25.920.1(0.2)9.527.9(2.2)(8.5)6.0(1.6)Forecast at the beginning of the period7.024.23.0FY2020ResultIncreased salesof spare parts forCivil aeroenginesChange in thenumber of enginefor Civil aeroenginesImpact ofshortage ofsemiconductorsCopyright © 2022 IHI Corporation All Rights Reserved.Impact of soaringmaterial pricesExpansion of lifecycle businessStrengthen coststructureReform businessstructureSales of assetsSG&AEffect ofexchange rateOthersFY2021ResultPerformance recovery drivers 51,190.0 71.2 1,097.0 1,261.2 164.2 1,190.0 (17.0) 1,112.9 1,172.9 59.9 80.0 1.4 27.9 81.4 53.5 70.0 17.6 27.6 87.6 60.0 40.0 26.0 13.0 66.0 52.9 Profit attributable toowners of parentProfit before taxOperating profitRevenueFY2021ChangeOrders receivedFY20201. Consolidated Results for FY2021Financial Results by Segment◼ Orders received & Order backlog（In billion yen）Copyright © 2022 IHI Corporation All Rights Reserved.6340.0 33.8 274.7 373.8 99.0 482.3 527.5 45.2 160.0 21.0 166.1 181.0 14.9 226.4 250.0 23.6 400.0 (15.4) 365.2 384.5 19.3 175.3 180.7 5.4 280.0 24.7 268.9 304.7 35.7 248.5 283.8 35.2 1,180.0 64.1 1,075.0 1,244.1 169.1 1,132.6 1,242.1 109.5 70.7 54.7 (15.9) 32.3 22.8 (9.5) (48.7) (37.6) 11.0 —1,190.0 71.2 1,097.0 1,261.2 164.2 1,165.0 1,265.0 99.9 Overseas orders received / order backlog367.9 511.8 143.9 313.2 342.3 29.0 % of Overseas orders received / order backlog34%41%7%27%27%0%OthersAdjustmentTotalIndustrial Systems andGeneral-Purpose MachineryAero Engine, Space andDefenseTotal Reportable SegmentResources, Energy andEnvironmentSocial Infrastructure andOffshore FacilitiesOrders receivedOrder backlogFY2021ChangeFY2020FY2021ChangeFY20201. Consolidated Results for FY2021Financial Results by Segment◼ Revenue & Operating profit（In billion yen）Copyright © 2022 IHI Corporation All Rights Reserved.7350.0 (5.5) 23.0 0.0 317.6 344.4 26.7 19.1 22.9 3.8 170.0 (2.6) 15.0 0.3 157.9 167.3 9.3 17.1 15.3 (1.7) 390.0 (13.0) 17.0 (4.1) 374.2 376.9 2.7 11.4 12.8 1.4 270.0 (4.7) (13.0) 3.6 251.5 265.2 13.7 (40.1) (9.3) 30.8 1,180.0 (25.9) 42.0 (0.1) 1,101.4 1,154.0 52.6 7.5 41.8 34.2 60.5 62.7 2.1 2.3 (1.0) (3.3) (49.0) (43.9) 5.1 18.0 40.6 22.6 1,190.0 (17.0) 80.0 1.4 1,112.9 1,172.9 59.9 27.9 81.4 53.5 Overseas revenue413.9 495.5 81.5 % of overseas revenue37%42%5%OthersAdjustmentTotalIndustrial Systems and General-Purpose MachineryAero Engine, Space andDefenseTotal Reportable SegmentResources, Energy andEnvironmentSocial Infrastructure andOffshore FacilitiesRevenueOperating profitChangeFY2021FY2020FY2021ChangeFY20201. Consolidated Results for FY2021Financial Results by Segment◼ Analysis of change in operating profit from the previous fiscal year（In billion yen）There are cases that the aggregated amount of each segment or factor doesn’t match to the total due to rounding off.Copyright © 2022 IHI Corporation All Rights Reserved.8Change inrevenueChange inconstructionprofitabilityChange inforeignexchangerateChange inSG&AChange inotherincome andexpensesTotalResources, Energy andEnvironment(1.0)3.31.1(0.1)0.53.8Social Infrastructure andOffshore Facilities(1.4)0.1(0.8)0.4(1.7)Industrial Systems andGeneral-Purpose Machinery0.81.60.3(2.3)1.01.4Aero Engine, Space andDefense7.310.66.5(0.3)6.730.8Total Reportable Segment5.615.58.0(3.6)8.734.2Others0.60.5(4.4)(3.3)Adjustment(0.8)(8.7)32.122.6Total5.416.08.0(12.3)36.453.51. Consolidated Results for FY2021Financial Results by Segment (Civil aero engines)Demand for aero transportation continues to recover moderately, and the transaction volume of spare parts also continues to recover.Available seat kilometers(ASK)from January 2020 to March 2022 –Vs. the same month in 2019Civil aero engineschanges in revenue and spare partstransaction volume ©IATACopyright © 2022 IHI Corporation All Rights Reserved.91. Consolidated Results for FY2021Vehicular turbochargersthe number of delivery (1,000 Units)The impact of the lockdown in China is beginning to become apparent, in addition to the delay in recovery from reduced automobile production.10Copyright © 2022 IHI Corporation All Rights Reserved.FY2020.1QFY2020.2QFY2020.3QFY2020.4QFY2021.1QFY2021.2QFY2021.3QFY2021.4QFY2022quarterlyaverageEurope3.05.05.86.16.14.03.95.55.2Central and South America0.21.72.22.83.13.00.94.53.0North America1.12.92.92.12.62.64.53.47.0China15.918.019.413.213.811.116.014.517.0Asia0.92.02.72.92.52.62.93.82.8Japan6.88.39.910.49.98.99.99.310.0Total28.237.842.937.738.331.938.141.145.0Number of delivery1,1501,5001,6101,2501,2601,0501,3001,3101,500▲2,000▲1,500▲1,000▲50005001,0001,5002,0000.010.020.030.040.050.060.0Vehicular turbochargers : The number of delivery and revenue by regionRevenue(billion yen)1. Consolidated Results for FY2021Finance Income / Costs etc.（In billion yen）Change of FX rate(US$) FY2020FY2021¥ 1.82 （beginning ¥108.83→end ¥110.65）¥ 11.74 （beginning ¥110.65→end ¥122.39）Copyright © 2022 IHI Corporation All Rights Reserved.11FY2020FY2021ChangeForeign exchange gains (losses)3.4 7.5 4.0 Share of profit (loss) of investmentsaccounted for using equity method(1.9) 1.1 3.1 Other finance income (costs)(1.8) (2.5) (0.7) Finance income / costs etc.(0.3) 6.1 6.4 1. Consolidated Results for FY2021Financial Position（In billion yen）*1 Including liabilities corresponding to operating leases under Japanese GAAP(¥111.9 billion and ¥107.3 billion as of March 31, 2021 and March 31, 2022)*2 D/E ratio = Interest-bearing liabilities / Total equity *3 Ratio of equity attributable to owners of parent= Equity attributable to owners of parent / Total liabilities and equity*4 ROIC= (Operating profit + Interest income and dividend income) after tax / (Equity attributable to owners of parent + Inte rest bearing liabilities)*5 CCC=Working capital /Revenue * 365 days Copyright © 2022 IHI Corporation All Rights Reserved.12As ofMarch 31, 2021As ofMarch 31, 2022Change Total assets1,832.8 1,879.6 46.7 [Cash and cash equivalents][120.7][145.4][24.7][Trade receivables & contract assets][456.3][474.5][18.1][Inventories][326.4][340.1][13.6] Total liabilities1,505.1 1,472.6 (32.5) [Trade payables etc.][234.4][235.4][0.9][Contract liabilities][165.8][214.7][48.9][Interest-bearing liabilities][605.9][505.5][(100.3)]Bonds and borrowings[463.1][372.2][(90.9)]Lease liabilities *1[142.8][133.3][(9.4)] Total equity327.7 407.0 79.3 Equity attributable to owners of parent300.7 382.1 81.3 Non-controlling interests26.9 24.9 (2.0) Total liabilities and equity1,832.8 1,879.6 46.7 D/E ratio (times) *21.851.24(0.61) Ratio of equity attributable to owners of parent (%) *316.420.33.9 ROIC (%) *42.26.44.2 CCC (days) *5124112(12)1. Consolidated Results for FY2021Cash Flows（In billion yen）*3Top left of table ：Forecast announced on February 8, 2022. *1: Depreciation consists of depreciation of property, plant and equipment, investment property, right-of-use assets and software, does not include amortization of capitalized development costs, patents and other intangible assets. *2: Change in working capital consists of change in trade receivables, contract assets, inventories, prepayments, contract liabilities, trade payables and refund liabilities.Working capital = Trade receivables + Contract assets + Inventories + Prepayments – Contract liabilities- Trade payables – Refund liabilities*3: Other includes transfer of gain on sale of assets held to cash flows from investing activities.Copyright © 2022 IHI Corporation All Rights Reserved.1327.6 87.6 60.0 69.8 67.5 (2.3) (56.0) 23.0 79.0 (5.0) (64.0) (58.9) 70.0 44.1 36.3 114.1 77.7 0.0 27.9 (40.4) 27.9 68.4 70.0 72.0 (4.1) 142.0 146.1 (23.7) (121.4) (97.7) ChangeProfit before taxDepreciation *1Change in working capital *2OtherCash flows from operating activitiesCash flows from investing activitiesFree cash flowCash flows from financing activitiesFY2020FY20211. Consolidated Results for FY2021Supplementary Information (1) R&D/CAPEX/Depreciation（In billion yen）CAPEX and depreciation consist of those of property, plant and equipment, investment property, right-of-use assets and software.(2) Revenue by Region（In billion yen）Copyright © 2022 IHI Corporation All Rights Reserved.1426.829.840.048.343.384.069.867.561.00.020.040.060.080.0100.0FY2020FY2021FY2022ForecastFY2020FY2021FY2022ForecastFY2020FY2021FY2022ForecastR&DCAPEXDepreciationFY2020FY2021Japan698.9 677.3 Asia118.9 164.1 China99.5 87.9 North America126.1 153.9 Central and South America8.5 13.4 Europe52.8 67.0 Others7.9 8.9 Total1,112.9 1,172.9 1. Consolidated Results for FY2021Supplementary Information (3) Assets balance by Segment（In billion yen）Copyright © 2022 IHI Corporation All Rights Reserved.15As ofMarch 31, 2021As ofMarch 31, 2022ChangeResources, Energy andEnvironment293.4 300.1 6.6 Social Infrastructure andOffshore Facilities298.9 290.9 (7.9) Industrial Systems andGeneral-Purpose Machinery335.5 329.7 (5.8) Aero Engine, Space andDefense692.8 716.3 23.4 Total Reportable Segment1,620.8 1,637.1 16.3 Others177.6 184.1 6.4 Adjustment34.4 58.4 23.9 Total1,832.8 1,879.6 46.7 Assets balance2. Forecasts of the Consolidated Results for FY2022Copyright © 2022 IHI Corporation All Rights Reserved.162. Forecasts of the Consolidated Results for FY2022Summary of ForecastsAssumed FX rate US$ 1.00 = ¥115（In billion yen）(Reference) FX rate sensitivity (impact amount on operating profit by change of 1 yen) : US$ ¥1.2 billionAnalysis of change in operating profit from the previous fiscal year81.431.03.012.023.64.03.0(14.0)75.0(10.0)(59.0)FY2021ResultEffect of sales oflarge scale assetsrecorded in theprevious yearRecovery ofbusinessenvironmentExchange ratefluctuationExpansion of lifecycle businessStrengthen coststructureReform businessstructureSG&AOther income andexpensesAdjustment of riskbufferFY2022ForecastDividend forecast 80yen per share ( Interim 40yen, year-end 40yen)Copyright © 2022 IHI Corporation All Rights Reserved.171,261.2 1,280.0 18.7 1,172.9 1,300.0 127.0 81.4 75.0 (6.4) 87.6 65.0 (22.6) 66.0 40.0 (26.0) Profit attributable toowners of parentRevenueOperating profitProfit before taxFY2021ResultsFY2022ForecastChangeOrders received2. Forecasts of the Consolidated Results for FY2022Forecasts by Segments◼ Orders received（In billion yen）Copyright © 2022 IHI Corporation All Rights Reserved.18373.8340.0(33.8)181.0170.0(11.0)384.5440.055.4304.7330.025.21,244.11,280.035.854.750.0(4.7)(37.6)(50.0)(12.3)1,261.21,280.018.7OthersAdjustmentTotalIndustrial Systems andGeneral-Purpose MachineryAero Engine, Space andDefenseTotal Reportable SegmentFY2022ForecastChangeResources, Energy andEnvironmentSocial Infrastructure andOffshore FacilitiesFY2021Results2. Forecasts of the Consolidated Results for FY2022Forecasts by Segments◼ Revenue & Operating profit(In billion yen)Copyright © 2022 IHI Corporation All Rights Reserved.19344.4 360.0 15.5 22.9 26.0 3.0 167.3 170.0 2.6 15.3 17.0 1.6 376.9 430.0 53.0 12.8 27.0 14.1 265.2 340.0 74.7 (9.3) 30.0 39.3 1,154.0 1,300.0 145.9 41.8 100.0 58.1 62.7 50.0 (12.7) (1.0) 2.0 3.0 (43.9) (50.0) (6.0) 40.6 (27.0) (67.6) 1,172.9 1,300.0 127.0 81.4 75.0 (6.4) AdjustmentTotalAero Engine, Space andDefenseTotal Reportable SegmentOthersResources, Energy andEnvironmentSocial Infrastructure andOffshore FacilitiesIndustrial Systems andGeneral-Purpose MachineryRevenueFY2022ForecastChangeOperating profitFY2021ResultsFY2021ResultsFY2022ForecastChange2. Forecasts of the Consolidated Results for FY2022Forecasts by Segments◼ Analysis of change in operating profit from the previous fiscal year◼ In the segment of Industrial Systems and General-Purpose Machinery, revenue and operating profit are expected to increase due to the expansion of life cycle business, the recovery of the business environment centered on Vehicular turbochargers, and the strengthening of cost structure by lowering the break-even point.◼ In the segment of Aero Engine, Space and Defense, revenue and operating profit are expected to increase and return to profitability due to increased sales of spare parts and improved productivity in Civil aero engines. （In billion yen）Copyright © 2022 IHI Corporation All Rights Reserved.20Change inrevenueChange inconstructionprofitabilityChange inforeignexchangerateChange inSG&AChange inotherincome andexpensesTotalResources, Energy andEnvironment5.02.0(4.0)3.0Social Infrastructure andOffshore Facilities1.6(1.0)1.01.6Industrial Systems andGeneral-Purpose Machinery8.05.1(3.0)4.014.1Aero Engine, Space andDefense31.014.43.0(3.0)(6.0)39.3Total Reportable Segment44.023.13.0(11.0)(1.0)58.1Others(1.0)(1.0)5.03.0Adjustment0.4(2.0)(66.0)(67.6)Total43.023.53.0(14.0)(62.0)(6.4)2. Forecasts of the Consolidated Results for FY2022Cash Flows◼ Despite increase in revenue scale, cash flows from operating activities are expected to exceed that of FY2021 by suppressing working capital increase through inventory reduction, etc.◼ Accelerate investments to create growth businesses.（In billion yen）*3*1: Depreciation consists of depreciation of property, plant and equipment, investment property, right-of-use assets and software, does not include amortization of capitalized development costs, patents and other intangible assets. *2: Change in working capital consists of change in trade receivables, contract assets, inventories, prepayments, contract liabilities, trade payables and refund liabilities.Working capital = Trade receivables + Contract assets + Inventories + Prepayments – Contract liabilitiesCopyright © 2022 IHI Corporation All Rights Reserved.- Trade payables – Refund liabilities21FY2021ResultsFY2022ForecastChangeProfit before tax87.6 65.0 (22.6) 67.5 61.0 (6.5) Change in working capital *223.0 0.0 (23.0) Other(64.0) 4.0 68.0 Cash flows from operating activities114.1 130.0 15.8 Cash flows from investing activities27.9 (90.0) (117.9) Free cash flows142.0 40.0 (102.0) Depreciation *13. Financial Results by SegmentCopyright © 2022 IHI Corporation All Rights Reserved.223. Financial Results by SegmentResources, Energy and Environment(In billion yen, accumulated amount)Orders receivedMain Businesses : Power systems, Carbon solutions and Nuclear energy154.3100.51H3Q45.81Q274.7FullyearFY2020 ResultsRevenue373.8 340.0340.0270.7147.160.81Q1H3QFullyearForecastin FebFY2021 ResultsForecastFY2022FY2021 Results (vs FY2020 Results)【Orders received】Increased in Carbon solutions, Nuclear energy and Power systems.【Revenue】Increased in Nuclear energy, etc.【Operating profit】Increased due to increased revenue in Nuclear energy, in addition to the improvement in profitability in Carbon solutions and Power systems.344.4 350.0360.0242.7159.774.81H3Q1Q1H3QFullyearForecastin Feb.Forecast224.1142.464.01Q317.6FullyearOperating ProfitFY2020 ResultsFY2021 ResultsFY2022Nuclear energy.FY2022 Forecasts (vs FY2021 Results )◼ Orders received is expected to decrease in 22.9 23.0 26.0◼ Revenue and operating profit are expected to increase due to the expansion of life cycle business in Carbon solutions and Nuclear energy.11.24.1(2.9)12.2 8.0 (0.2)19.1Fullyear1Q1H3Q1Q1H3QFullyearForecastin Feb.ForecastFY2020 ResultsFY2021 ResultsFY2022Copyright © 2022 IHI Corporation All Rights Reserved.233. Financial Results by SegmentResources, Energy and Environment*In accordance with the SBU reorganization in FY2021, results in FY2020 are rearranged.Copyright © 2022 IHI Corporation All Rights Reserved.24(In billion yen)FY2022FY20221Q1H3QFull year1Q1H3QFull yearFull year(Forecast)1Q1H3QFull year1Q1H3QFull yearFull year(Forecast)Power systems19.035.250.571.925.541.460.484.686.018.838.361.187.118.638.461.088.987.0Carbon solutions *13.527.346.6119.915.462.2115.6159.1173.033.078.7119.2159.435.276.4112.9155.8163.0Nuclear energy9.115.327.242.610.426.958.470.737.04.510.018.132.76.016.328.045.374.0Orders receivedRevenueFY2021FY2020FY2021FY20203. Financial Results by SegmentSocial Infrastructure and Offshore Facilities(In billion yen, accumulated amount)Orders receivedMain Businesses : Bridges and water gates, Shield systems, Urban development, Transport systems, and Concrete construction materials98.965.61H3Q28.91Q166.1Fullyear181.0 160.0170.0119.687.744.71Q1H3QFullyearForecastin Feb.ForecastFY2020 ResultsFY2021 ResultsFY2022Revenue103.965.41H3Q31.91Q157.9Fullyear111.769.91H3Q34.61Q167.3 170.0170.0FullyearForecastin Feb.ForecastFY2020 ResultsFY2021 ResultsFY2022Operating Profit1.71Q5.61H10.13Q17.1Fullyear2.41Q4.01H5.23Q15.315.017.0FullyearForecastin Feb.ForecastFY2020 ResultsFY2021 ResultsFY2022FY2021 Results (vs FY2020 Results)【Orders received】Increased in Bridges and water gates.【Revenue】Despite decreased real estate sales in Urban development, increased in Bridges and water gates and Shield systems.【Operating profit】Despite increased sales, decreased due to a decline in real estate sales and the impact of soaring steel prices and marine transportation costs in Bridges and water gates.FY2022 Forecasts (vs FY2021 Results )◼ Orders received is expected to decrease in Bridges and water gates.◼ Revenue and operating profit are expected to increase due to an increase in maintenance projects and the strengthening of the cost structure by thorough management of overseas projects in Bridges and water gates.Copyright © 2022 IHI Corporation All Rights Reserved.253. Financial Results by SegmentSocial Infrastructure and Offshore Facilities*For related information of “Urban development” in Toyosu, please refer to Urban development.Copyright © 2022 IHI Corporation All Rights Reserved.26(In billion yen)FY2022FY20221Q1H3QFull year1Q1H3QFull yearFull year(Forecast)1Q1H3QFull year1Q1H3QFull yearFull year(Forecast)Bridges and water gates11.129.943.779.331.261.480.6110.992.015.131.249.476.817.833.655.589.6102.0Shield systems4.77.39.621.71.24.48.614.632.03.59.112.319.45.812.017.522.721.0Urban development6.512.718.923.94.69.414.118.417.06.611.418.923.94.69.614.018.617.0Orders receivedRevenueFY2021FY2020FY2021FY20203. Financial Results by SegmentIndustrial Systems and General-Purpose Machinery(In billion yen, accumulated amount)Orders receivedMain Businesses : Vehicular turbochargers, Parking, Rotating machineries, Heat treatment and surface engineering, Transport machineries and Logistics and industrial systems74.01Q365.2253.1159.31H3QFullyearFY2020 ResultsRevenue77.91Q374.2271.7172.41H3QFullyearFY2020 ResultsOperating Profit384.5 400.0440.0272.7179.591.61Q1H3QFullyearForecastin Feb.FY2021 ResultsForecastFY2022376.9 390.0430.0271.9175.988.81Q1H3QFullyearForecastin Feb.FY2021 ResultsForecastFY20229.512.817.027.00.15.62.95.5(1.4)1Q1H3Q1Q1H3Q11.4FullyearFY2020 ResultsFY2021 ResultsCopyright © 2022 IHI Corporation All Rights Reserved.FullyearForecastin Feb.ForecastFY2022FY2021 Results (vs FY2020 Results)【Orders received】Increased in Heat treatment and surface engineering and Rotating machineries.【Revenue】Despite a decrease in Transport machineries, increased in Heat treatment and surface engineering and Rotating machineries.【Operating profit】Although recorded restructuring cost in Vehicular turbochargers, increased due to the effect of the restructuring cost recorded in Agricultural machineries in the previous fiscal year, in addition to increased revenue and improved profitability.FY2022 Forecasts (vs FY2021 Results )◼ Orders received is expected to increase in Vehicular turbochargers.◼ Revenue and operating profit are expected to increase due to the effect of the restructuring cost recorded in the previous fiscal year, in addition to the expansion of life cycle business, the recovery of the business environment centered on Vehicular turbochargers, and the strengthening of cost structure by lowering the break-even point.273. Financial Results by SegmentIndustrial Systems and General-Purpose Machinery*For details of “Vehicular turbochargers”, please refer to Vehicular turbochargersCopyright © 2022 IHI Corporation All Rights Reserved.28(In billion yen)FY2022FY20221Q1H3QFull year1Q1H3QFull yearFull year(Forecast)1Q1H3QFull year1Q1H3QFull yearFull year(Forecast)Vehicular turbochargers28.366.2108.9146.938.671.4110.0151.8180.028.266.0108.9146.638.370.2108.3149.4180.0Parking10.221.834.250.210.622.933.352.454.09.320.533.546.09.119.631.947.255.0Rotating machineries12.023.233.546.613.626.739.155.958.010.323.036.049.711.923.737.652.756.0Heat treatment andsurface engineering5.611.819.329.810.720.932.643.545.06.713.721.430.48.718.628.539.643.0Transport machineries4.98.312.129.64.19.713.523.032.010.219.729.140.07.316.424.231.033.0FY2021FY2020FY2021FY2020Orders receivedRevenue＜Number of vehicular turbochargers delivered＞(1,000 Units)Full YearFY20205,510FY20214,920FY2022 Forecast6,0003. Financial Results by SegmentAero Engine, Space and Defense(In billion yen, accumulated amount)Orders received268.9165.53QFullyearFY2020 Results33.8 90.61H1QRevenue304.7 280.0330.0170.339.9 86.81H1Q3QFullyearFY2021 ResultsForecastin Feb.ForecastFY2022Main Businesses : Aero engines, Rocket systems and space utilization systems and Defense systemsFY2021 Results (vs FY2020 Results)【Orders received】Increased in Civil aero engines.【Revenue】Increased due to increased sales of engines and spare parts in Civil aero engines.【Operating profit】The loss narrowed due to the depreciation of the yen, in addition to increased sales of spare parts and strengthening the cost structure including reductions in overall costs.43.6 99.2 161.11Q1H3Q251.5FullyearFY2020 ResultsOperating Profit45.2 108.21Q1H265.2 270.0178.03QFullyearForecastin Feb.340.0FY2022 Forecasts (vs FY2021 Results )Forecast◼ Orders received is expected to increase in Civil aero FY2021 ResultsFY2022engines.◼ Revenue and operating profit are expected to increase and return to profitability due to increased sales of spare parts and improved productivity in Civil aero engines. 30.0 (5.5)(16.8)(29.8) (40.1)(7.1)(12.3)(5.5)(9.3) (13.0)1Q1H3Q1Q1H3QFullyearFY2020 ResultsFY2021 ResultsFullyearForecastin Feb.ForecastFY2022Copyright © 2022 IHI Corporation All Rights Reserved.293. Financial Results by SegmentAero Engine, Space and Defense*For details of “Civil aero engines”, please refer to Aero engines.Copyright © 2022 IHI Corporation All Rights Reserved.30(In billion yen)FY2022FY20221Q1H3QFull year1Q1H3QFull yearFull year(Forecast)1Q1H3QFull year1Q1H3QFull yearFull year(Forecast)Civil aero engines21.544.372.4100.825.753.589.9121.9195.020.745.173.5101.725.654.091.1123.3193.0FY2020FY2021FY2020FY2021Orders receivedRevenue(Units)Full YearFY2020842FY2021789FY2022 Forecast1,072＜Appendices＞・Topics in the Fourth Quarter ・Financial Performance・Aero engines・Vehicular turbochargers・Urban developmentCopyright © 2022 IHI Corporation All Rights Reserved.31Topics in the Fourth Quarter Commencement of Technical and Economic Feasibility Study in order to Achieve Ammonia Co-Firing at a Coal Fired Power Plant in IndiaIHI, Adani Power Limited(“APL”), India’s largest power generation company, and Kowa Company Ltd. have signed a basic agreement to verify the technology and economics of applying ammonia co-firing to the Adani Power Mundra Coal Fired Power Plant, owned by APL. The aim of the project is to reduce CO₂ emissions from Coal Fired Power Plants in India.We are going to conduct various technical studies based on the premise of 20% ammonia co-firing with the existing Coal Fired boilers at the Adani Power Mundra Coal Fired Power Plant, and also study and discuss the possibility of future higher co-firing ratio up to 100% mono-firing.＜Adani Power Mundra Coal Fired Power Plant (left)＞Order received for EPC Contract for Demonstration Plant at Australian Carbon-Free Hydrogen ProjectThe IHI Group was awarded a contract for an engineering procurement and construction contract for the Kogan Renewable Hydrogen Demonstration Plant from Australian electricity provider, CS Energy Ltd.The project will produce green hydrogen through electrolysis powered by a nearby solar farm and through battery energy storage. It will sell surplus electricity to the power grid.Through this new demonstration plant, IHI and CS Energy are going to lead decarbonization in Australia by leveraging the knowledge gained from developing and operating the Soma IHI Green Energy Center in Fukushima Prefecture that began operations in 2018.Copyright © 2022 IHI Corporation All Rights Reserved.＜Impression of plant＞32Topics in the Fourth Quarter Order received for energy storage system for use with one of the largest solar power generation facilities in the United StatesIHI Terrasun Solutions Inc. (“Terrasun”), a subsidiary located in the United States, has received orders for an energy storage system from the major US power operator PrimergySolar LLC, including storage batteries, and an energy management system (“EMS”) for simultaneous management of an entire power generation facility. The system will be used in the Gemini project comprising one of the largest solar power generation and energy storage facilities in the United States.Terrasun will adopt technologies to efficiently store excess electricity supplied by the solar power facilities in storage batteries, instead of discarding it, and will be responsible for the entire EMS, which manages the various items of equipment. The company will also provide long-term lifecycle services, such as servicing, inspection and maintenance of the energy storage facility over a period of 25 years.Construction and implementation of a digital platform for managing and converting CO₂ emissions and reductions into environmental value: using blockchain technology for external distributionIHI has implemented an environmental value management function in its IoT platform, ILIPS (IHI group Lifecycle Partner System) that connects customers.Under this framework, conventional amount of CO2 emissions and reductions are automatically calculated, recorded and visualized in the blockchain based on operating data accumulated in the ILIPS cloud. In addition, a function has been implemented to enable the amount of CO₂ emissions reductions to be converted to an environmental value in the form of tokens (digital certificate), which can be linked to external market.Using this framework, reduced CO₂ can be traded/converted in credit market and it will enable customers to recover their investments and move forward with additional capital investment, thus driving activities that help achieve a decarbonized society.Copyright © 2022 IHI Corporation All Rights Reserved.33Financial PerformanceROIC = (Operating profit + Interest income and dividend income) after tax / (Equity attributable to owners of parent + Interest-bearing liabilities) CCC = Working capital /Revenue * 365 days D/E ratio = Interest-bearing liabilities / Total equityROE = Profit attributable to owners of parent / Equity attributable to owners of parentRatio of equity attributable to owners of parent = Equity attributable to owners of parent / Total liabilities and equityCopyright © 2022 IHI Corporation All Rights Reserved.34(In billion yen)FY2016FY2017FY2018FY2019FY2019FY2020FY2021FY2022(Forecast)Orders received1,389.8 1,505.0 1,399.2 1,373.9 1,280.0 1,097.0 1,261.2 1,280.0 Revenue1,468.3 1,590.3 1,483.4 1,386.5 1,263.1 1,112.9 1,172.9 1,300.0 Operating profit47.3 72.2 82.4 60.7 47.8 27.9 81.4 75.0 Profit attributable toowners of parent5.2 8.2 39.8 12.8 8.2 13.0 66.0 40.0 Cash flowsfrom operating activities65.3 99.0 46.4 14.5 42.4 36.3 114.1 130.0 Cash flowsfrom investing activities(28.9) (47.9) (79.2) (75.8) (85.5) (40.4) 27.9 (90.0) Free cash flows36.4 51.0 (32.8) (61.3) (43.0) (4.1) 142.0 40.0 Dividends per share (yen)0Interim 3Year-end 30*(*after shareconsolidation)70(Interim 30,Year-end 40)50(Interim 30,Year-end 20)50(Interim 30,Year-end 20)070(Interim 30,Year-end 40)80(Interim 40,Year-end 40)ROIC (%)5.07.78.75.74.12.26.46.0Operating margin (%)3.24.55.64.43.82.56.95.8CCC (days)8783971209212411299D/E ratio (times)1.100.920.931.382.001.851.241.09ROE (%)1.62.611.83.82.84.519.310.2Ratio of equity attributable to owners of parent (%)18.819.921.018.715.016.420.322.5Japanese GAAPIFRSAero enginesRevenue & Number of civil aero engines delivered(Note) The number of civil aero engine delivered is the number handed over to the airframe maker, and differs from the number of factory shipments.Copyright © 2022 IHI Corporation All Rights Reserved.35Japanese GAAPIFRSRevenue(In biilion yen)143.6169.8226.0267.0299.1291.5281.0318.5222.4101.7123.3Accumulated number ofcivil aero enginesdelivered (Units)V25004,9805,4685,9696,4696,8967,2367,5087,6887,7357,7407,756AirbusA319/320/321GE901,3991,5891,8062,0392,2572,4572,6172,7152,8242,8852,925BoeingB777CF343,2423,5483,8204,1564,4714,8215,0855,3315,6115,7985,926For regional jet（70 to 110 seats）GEnx1182594687511,0351,2951,5421,8262,1592,3282,425BoeingB787/B747-8PW1100G161483981,0581,7842,1442,585AirbusA320NeoPassport201366142202269BombardierGlobal7500Total9,73910,86412,06313,41514,67515,95717,16318,68420,25521,09721,886’21’20’18’17’16Main loading’11’12’13’14’15’19Vehicular turbochargersRevenue by regionCopyright © 2022 IHI Corporation All Rights Reserved.36（In billion yen）’22Forecast33.935.337.534.638.939.844.639.135.438.040.024.829.827.521.615.811.711.010.78.511.811.018.123.424.324.948.571.963.157.266.555.468.01.31.61.82.43.38.411.610.89.013.128.00.00.00.73.46.17.47.56.66.911.512.043.260.275.674.361.781.151.328.919.919.521.00.00.00.00.00.00.00.00.10.10.10.0121.6150.7167.7161.6174.6220.5189.5153.6146.6149.4180.05,1805,5405,8905,3606,1007,9006,7606,0005,5104,9206,000EuropeOthersJapanese GAAP’19’20IFRS’21Total’18ChinaNorth AmericaCentral and South AmericaJapanAsia’16’17’14’15’12’13The number of delivery(1,000 Units)Urban development(1) Lease revenue in Toyosu(2) Lease revenue and expense in Toyosu (FY2021)(3) Fair value of investment property in Toyosu (as of March 31, 2022 )(Note) The carrying amount is calculated by subtracting accumulated depreciation and impairment losses from acquisition cost.Fair value as of March 31, 2022 is based on the values mainly in the appraisal report by external real estate appraisers.Copyright © 2022 IHI Corporation All Rights Reserved.37（In billion yen）ForecastLeaserevenue9.29.19.310.19.39.29.39.412.312.112.1’12’13’14’15’16’22’17’18’19Results’20’21（In billion yen）DepreciationOthersFY202112.15.24.62.2LeaserevenueLease expenseProfit（In billion yen）Carrying amountBalance as ofApril 1, 2021Net changeBalance as ofMarch 31,2022(A)FY2021102.6(3.0)99.6226.1126.5Fair value as ofMarch 31,2022(B)(B) – (A)Development Plan for Toyosu 1 to 3 chome Area Development Plan for District 4-2Site area : 19,493㎡Planned construction schedule from 2022 summer to 2025 summerUrban Dock LaLaport Toyosu ANNEX 5 floors above ground, Approx. 25m highStore floor space : 24,721㎡Opened in October 2006 Toyosu 1-chome PlanUrban DockPark City ToyosuIHI Head office ShibauraInstitute of TechnologyDistrict 4-2Urban DockLaLaport ToyosuThe Dai-ichiLife Insurance Company (Head Office)District 3-2HarumiStreetDistrict 1District 4-1District 3-1Toyosu Residence City TowersToyosuThe SymbolRoyal Parks Toyosu The Toyosu TowerToyosu 3-Chome ParkToyosu Kita Elementary As of May 2022Toyosu Foresia16 floors above ground, Approx. 75m high,Gross floor area : 101,503㎡Completed in July 2014Toyosu Front 15 floors above ground , Approx. 75m highGross floor area : 106,861㎡Completed in August 2010Toyosu Center Building37 floors above ground , Approx. 165m high Gross floor area : 100,069㎡Completed in October 1992Toyosu Center Building Annex33 floors above ground, Approx. 150m highGross floor area : 105,448㎡Completed in August 2006 Toyosu Bayside Cross Tower A・C, 36 floors above ground, Approx. 178m highGross floor area : 185,000㎡Completed in March 2020Building AToyosu ParkDistrict 2TrafficCircleYurikamome LineToyosu Station,Yurakucho LineOffice LeasingLand LeasingOffice Leasing(Leased land)Under developmentBuilding CCopyright © 2022 IHI Corporation All Rights Reserved.38Property of IHIApprox. 5ha Sold, Donated, ExchangedToyosu Center BuildingAnnexForward-looking figures shown in this material with respect to IHI’s performance outlooks and other matters are based on management’s assumptions and beliefs in light of the information currently available to it, and therefore contain risks and uncertainties. Consequently, you should not place undue reliance on these performance outlooks in making judgments. IHI cautions you that actual results could differ materially from those discussed in these performance outlooks due to a number of important factors. These important factors include political environments in areas in which IHI operates, general economic conditions, and the yen exchange rate including its rate against the US dollar.