(Translation purposes only) 198th term (from April 1, 2014 to March 31, 2015) Annual Securities Report 1. This is an English translation of the Annual Securities Report (“Yukashoken Hokokusho”) pursuant to Article 24, paragraph 1 of the Financial Instruments and Exchange Act of Japan filed on June 25, 2015, via the Electronic Disclosure for Investors’ Network (“EDINET”) system as set forth in Article 27-30-2 of the same Act. The translation includes a table of contents and pagination that are not included in the electronic filing. 2. This report does not contain the attachments to the Annual Securities Report (“Yukashoken Hokokusho”) submitted via the above method, however English translations of the Independent Auditors’ Report, Confirmation Letter and Internal Control Report have been appended to the back of this report. IHI Corporation (Translation purposes only) Table of Contents Page 198th term Annual Securities Report Cover page ............................................................................................................................................................................................... 1 Part 1. Company information .................................................................................................................................................................. 2 I. Overview of company ...................................................................................................................................................................... 2 1. Summary of business results ..................................................................................................................................................... 2 2. Company history....................................................................................................................................................................... 4 3. Description of business ............................................................................................................................................................. 6 4. Overview of affiliated entities .................................................................................................................................................. 9 5. Information about employees ................................................................................................................................................. 12 II. Overview of business .................................................................................................................................................................... 14 1. Overview of business results .................................................................................................................................................. 14 2. Overview of production, orders received and sales ................................................................................................................ 16 3. Issues to be addressed ............................................................................................................................................................. 18 4. Business risks ......................................................................................................................................................................... 19 5. Material contracts for operation .............................................................................................................................................. 24 6. Research and development activities ...................................................................................................................................... 25 7. Analysis of financial position, operating results and cash flows ............................................................................................. 27 III. Information about facilities .......................................................................................................................................................... 29 1. Overview of capital expenditures, etc. .................................................................................................................................... 29 2. Major facilities ........................................................................................................................................................................ 29 3. Planned additions, retirements, etc. of facilities...................................................................................................................... 31 IV. Information about reporting company .......................................................................................................................................... 32 1. Information about shares, etc. ................................................................................................................................................. 32 2. Acquisitions, etc. of treasury shares........................................................................................................................................ 44 3. Dividend policy ...................................................................................................................................................................... 45 4. Historical records of share price ............................................................................................................................................. 45 5. Information about directors and auditors ................................................................................................................................ 46 6. Corporate governance, etc. ..................................................................................................................................................... 55 V. Overview of operational procedures for shares ............................................................................................................................. 64 VI. Reference information of reporting company .............................................................................................................................. 65 1. Information about parent company, etc. of reporting company .............................................................................................. 65 2. Other reference information .................................................................................................................................................... 65 Part 2. Information about company which provides guarantee to reporting company ........................................................................... 67 [Consolidated financial statements] ..................................................................................................................................................... F-1 Consolidated financial statements IHI corporation and Subsidiaries. .............................................................................................. F-3 Independent Auditor's Report ....................................................................................................................................................... F-62 [Independent Auditors’ Report (Translation)] ...................................................................................................................................... A-1 [Confirmation Letter (Translation)] ..................................................................................................................................................... A-3 [Internal Control Report (Translation)]................................................................................................................................................ A-5 (Translation purposes only) Cover page Document title Annual Securities Report Clause of stipulation Article 24, paragraph 1 of the Financial Instruments and Exchange Act Place of filing Director-General of the Kanto Local Finance Bureau Filing date June 25, 2015 Fiscal year 198th term (from April 1, 2014 to March 31, 2015) Company name 株式会社ＩＨＩ (Kabushiki Kaisha IHI) Company name in English IHI Corporation Title and name of representative Tamotsu Saito, President and Chief Executive Officer Address of registered head office 1-1, Toyosu 3-chome, Koto-ku, Tokyo, Japan Telephone number +81-3-6204-7065 Name of contact person Yasuaki Fukumoto, Manager, Accounting Group, Finance & Accounting Div. Nearest place of contact 1-1, Toyosu 3-chome, Koto-ku, Tokyo, Japan Telephone number +81-3-6204-7065 Name of contact person Yasuaki Fukumoto, Manager, Accounting Group, Finance & Accounting Div. Place for public inspection Tokyo Stock Exchange, Inc. (2-1, Nihonbashi Kabutocho, Chuo-ku, Tokyo) Nagoya Stock Exchange, Inc. (8-20, Sakae 3-chome, Naka-ku, Nagoya-city) Securities Membership Corporation Fukuoka Stock Exchange (14-2, Tenjin 2-chome, Chuo-ku, Fukuoka-city) Securities Membership Corporation Sapporo Securities Exchange (14-1, Minamiichijo-nishi 5-chome, Chuo-ku, Sapporo-city) - 1 - (Translation purposes only) Part 1. Company information I. Overview of company 1. Summary of business results (1) Business results of group (Consolidated) Term 194th term 195th term 196th term 197th term 198th term Fiscal year ended March 31, 2011 March 31, 2012 March 31, 2013 March 31, 2014 March 31, 2015 Net sales 1,187,292 1,221,869 1,256,049 1,304,038 1,455,844 (Millions of yen) Ordinary income 51,482 41,715 36,219 53,235 56,529