Notice Regarding Business Succession from Sumitomo Heavy Industries Conveyor Systems Ltd. by a Consolidated Subsidiary

Overview of Absorption-Type Split

IHI Corporation has decided that its consolidated subsidiary, IHI Transport Machinery Co., Ltd., will succeed the mechanical parking system business of Sumitomo Heavy Industries Conveyor Systems Ltd. through an absorption-type split. The absorption-type split agreement is scheduled to be concluded on March 31, 2026, with the effective date planned for November 1, 2026. The subject business includes underground parking equipment as well as maintenance and refurbishment services, with sales of 7,090 million JPY for the fiscal year ending December 2024. There will be no change in capital, and there are no concerns regarding debt fulfillment.

Purpose of Business Integration and Future Outlook

This absorption-type split aims to strengthen the parking system business and capture market growth as part of the IHI Group’s medium-term management plan. By combining IHI Transport Machinery’s strengths in tower-type and multi-level mechanical parking systems with the highly regarded underground parking business of the subject segment, the company intends to enhance operational efficiency and reinforce its business foundation. The impact on the consolidated earnings forecast for the fiscal year ending March 2026 is expected to be minor.