Hiroshi Ide, President of IHI Corporation, delivered New Year's greetings to all IHI Group employees. The summary is as follows.

- Make 2024 the first year of transformative action!
As we celebrate our 170th anniversary, we rise to the challenge with a renewed determination -

During the year, we embarked on new beginnings under Group Management Policies 2023, through which we seek to transform our businesses to deliver sustainably high growth. On December 5th, we celebrated IHI’s 170th anniversary. The year also tested our mettle. For example, we had to post significant expenses to maintain safety through additional inspections for a civil aero engine program. A subsidiary underwent an on-site inspection on suspicion of violating the Antimonopoly Law. We will prioritize the following three steps to overcome such challenges and realize growth and transformation in this anniversary year.

1. Maintain Robust Cash Generation Capability
Project Change had four key priorities, including to return to a growth trajectory and create growth businesses. This initiative succeeded in several respects, notable one being to post record-high operating profit in fiscal year 2022. But we could still do better at generating cash. Also, civil aero engine program expenses hit us hard financially. We will nonetheless keep investing as we pledged to stakeholders under Group Management Policies 2023, delivering sustainable high growth while meticulously scrutinizing investments.
We must therefore urgently reinforce our financial foundation to shield it from unexpected events and risks and ensure that each of our businesses continues to generate cash. Furthermore, to more effectively generate cash, we must all become more efficient, making small improvements as we proceed. Let us all stay aware of this in our daily operations and devise ways to do things better.

2. Eliminate Compliance Issues Forever
Although we have been evoking the importance of compliance throughout the years, one of our operations is alleged in violation of the Antimonopoly Law. There is never an excuse to disregard compliance.
As a responsible corporate citizen, making compliance is our top priority in all of our work. keep this in mind, and let’s contribute to society.

3. Embed DE ＆I in Our Corporate Culture
We consider diversity, equity, and inclusion (DE&I) is pivotal to our drive to transform our business model under Group Management Policies 2023. DE＆I entails acknowledgement and leverage of mutual strengths and ensuring equitable opportunities for all of us to pursue new challenges. Only then can we build a culture in which individuals feel free to express their ideas and opinions. I am confident that the diverse backgrounds, experiences, and personalities of our people will inject fresh perspectives and propel changes for the better in the IHI Group.
I am designating this year as the start of intensive initiatives to advance DE&I, and embed it in our corporate culture.

Last but not least, I note that safety is the bedrock of our activities. Please regularly communicate each other about ways to make our workplaces safer and more secure.

In closing, we view last year’s challenges we faced as opportunities for ourselves and IHI Group’s growth and transformations. Let us rise to the challenge and move forward together to make 2024 as a year in which we pave the way to enduring progress and prosperity.

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