Jfe Holdings, Inc. · TSE:5411
Jfe — Q3 FY2023 Earnings Presentation
83 slides from Jfe's earnings presentation, Feb 6, 2024
Slide 1: Financial Results for Third Quarter of Fiscal Year 2023
Securities Code：5411.T JFE Group Financial Results for Third Quarter of Fiscal Year 2023 ending March 31, 2024 JFE Holdings, Inc. February 6, 2024 Copyright © 2024 JFE Holdings, Inc. All Rights Reserved.
Slide 2: A table of contents
A table of contents Financial Highlights JFE Holdings’ Financial Results for Third Quarter of Fiscal Year 2023 (April 1 to December 31, 2023) and Financial Forecast for Fiscal Year 2023 (April 1, 2023, to March 31, 2024) Dividends Financial Forecast for Fiscal Year 2023 by Segment Outlook
Slide 3: Financial Highlights
JFE-HD Financial Highlights Amid the challenging business environment of sluggish export markets and persistently high raw material prices, the business profit in Apr–Dec of FY2023, excluding inventory valuation etc., increased by 130.9 billion yen from the same period of the previous year due to
Slide 4: Consolidated Results for Third Quarter of Fiscal Year 2023
Consolidated Results for Third Quarter of Fiscal Year 2023 (April 1 to December 31, 2023) Copyright © 2024 JFE Holdings, Inc. All Rights Reserved. 4
Slide 5: Financial Results for Third Quarter of Fiscal Year 23
JFE-HD Financial Results for Third Quarter of Fiscal Year 2023 Business profit in Apr-Dec of FY2023 was ¥244.9bn. (increased by ¥13.9bn. year-on-year) ＊Excluding inventory valuation, increased by ¥130.9bn. year-on-year. FY2022 Actual FY2023 Actual Change （billion yen） Oct-Dec Apr-Dec Oct-Dec Apr-D
Slide 6: Financial Results for Third Quarter of Fiscal Year 23 (by Segment)
JFE-HD Financial Results for Third Quarter of Fiscal Year 2023 (by Segment) FY2022 Actual FY2023 Actual Change （billion yen） Oct-Dec Apr-Dec Oct-Dec Apr-Dec Apr-Dec Steel Business 986.9 2,905.9 915.6 2,781.4 (124.5) Engineering Business 130.9 349.9 136.3 384.8 34.9 Trading Business 383.6 1,133.8 368
Slide 7: ¥1.0bn. Increase in JFE Steel's Segment Profit
JFE Steel ¥1.0bn. Increase in JFE Steel’s Segment Profit (FY2022 Apr-Dec vs. FY2023 Apr-Dec) （billion yen） FY2022 FY2023 Unit Apr-Dec Apr-Dec FY2022 FY2023 Change JFE Steel Apr-Dec Apr-Dec Crude Steel (Standalone) Mt 18.12 17.78 Segment Shipment Mt 16.11 15.73 Profit 170.0 171.0 1.0 (Standalone) Ave
Slide 8: Financial Forecasts for Fiscal Year 2023
Financial Forecasts for Fiscal Year 2023 (April 1, 2023, to March 31, 2024) Copyright © 2024 JFE Holdings, Inc. All Rights Reserved. 8
Slide 9: Financial Forecast for Fiscal Year 2023
JFE-HD Financial Forecast for Fiscal Year 2023 Full-year business profit is expected to be ¥290.0bn. (as previous forecast, increased by ¥54.2bn. year-on-year) Full-year profit attributable to owners of parent is expected to be ¥190.0bn. (as previous forecast, increased by ¥27.4bn. year-on-year)
Slide 10: Financial Forecast for Fiscal Year 2023 (by Segment)
JFE-HD Financial Forecast for Fiscal Year 2023 (by Segment) FY2023 Change Change FY2022 FY2023 FY2022→ Forecast Previous Actual (Previous) Forecast(Updated) FY2023 →Updated （billion yen） （Updated） 1H Actual 2H Forecast Full Year Full Year Full Year Full Year Full Year (Apr-Sep) (Oct-Mar) Steel Busin
Slide 11: Dividend
JFE-HD Dividend JFE Holdings has decided to propose at its general meeting of shareholders a year-end dividend of 50 yen per share, which would bring the annual dividend of 100 yen per share. (yen/share) Payout ratio 160 31.9% 33.5% N/A N/A 28.0% 28.5% 32.1% 140 Interim devidend 120 Year-end divid
Slide 12: JFE Steel Financial Forecast for Fiscal Year 2023
JFE Steel Financial Forecast for Fiscal Year 2023 Copyright © 2024 JFE Holdings, Inc. All Rights Reserved. 12
Slide 13: Business environment (Demand for steel)
JFE Steel Business environment （ Demand for steel ） Domestic：The level of activity in the automotive sector is improving. On the other hand, demand continues to be postponed, particularly in the civil engineering and construction sectors, due to labor shortages and the impact of soaring materials
Slide 14: Financial Forecast for Fiscal Year 2023
JFE Steel Financial Forecast for Fiscal Year 2023 FY2022 FY2023(updated) FY2023 Unit Previous Full Full Forecast 1H 3Q 4Q 2H Year 1H 3Q 4Q 2H Year billion Revenue 1,918.9 986.9 975.3 1,962.2 3,881.1 1,865.8 915.6 978.6 1,894.2 3,760.0 3,800.0 yen Segment billion 148.2 21.8 (23.2) (1.4) 146.8 122.8 4
Slide 15: No change in JFE Steel's Segment Profit
JFE Steel No change in JFE Steel’s Segment Profit (FY2023 (Previous Forecast) vs. FY2023(Updated Forecast)) （billion yen） FY2023 FY2023 Change JFE Steel Previous Forecast Updated Forecast Segment Profit 200.0 200.0 0.0 Excluding Inventory Valuation etc. 200.0 205.0 5.0 1. Cost ±0 2. Volume • Crude S
Slide 16: ¥53.2bn. Increase in JFE Steel's Segment Profit
JFE Steel ¥53.2bn. Increase in JFE Steel’s Segment Profit (FY2022 (Actual) vs. FY2023 (Forecast)) （billion yen） FY2022 FY2023 Change JFE Steel Actual Forecast Segment Profit 146.8 200.0 53.2 Excluding Inventory Valuation etc. 73.8 205.0 131.2 1. Cost • Structural reforms effect +20.0 • Operational i
Slide 17: ¥45.6bn. Decrease in JFE Steel's Segment Profit
JFE Steel ¥45.6bn. Decrease in JFE Steel’s Segment Profit (FY2023.1H vs. FY2023.2H) （billion yen） FY2023 Forecast Change JFE Steel 1H Actual 2H Forecast Full Year Segment Profit 122.8 77.2 200.0 (45.6) Excluding Inventory Valuation etc. 123.8 81.2 205.0 (42.6) 1. Cost • Structural reforms effect＋20.
Slide 18: JFE Engineering Financial Forecast for Fiscal Year 2023
JFE Engineering Financial Forecast for Fiscal Year 2023 Copyright © 2024 JFE Holdings, Inc. All Rights Reserved. 18
Slide 19: JFE Engineering Financial Forecast for Fiscal Year 2023
JFE Engineering Financial Forecast for Fiscal Year 2023 Current Business Environment/Overview of Financial Status Annual segment profit is expected to be ¥25.0 billion. (As previous forecast) ＜Year-on-year＞ ・ Orders: Expect to increase in the field of “Waste to Resource” and “Carbon neutral”. ・ Se
Slide 20: JFE Shoji Financial Forecast for Fiscal Year 2023
JFE Shoji Financial Forecast for Fiscal Year 2023 Copyright © 2024 JFE Holdings, Inc. All Rights Reserved. 20
Slide 21: JFE Shoji Financial Forecast for Fiscal Year 2023
JFE-Shoji Financial Forecast for Fiscal Year 2023 Current Business Environment/Overview of Financial Status Annual segment profit is expected to be ¥48.0 billion. (As previous forecast) ＜Year-on-year＞ Despite the recovery in automobile production, profit is expected to decline due to the slow reco
Slide 22: Outlook for Fiscal Year 2024
Outlook for Fiscal Year 2024 Copyright © 2024 JFE Holdings, Inc. All Rights Reserved. 22
Slide 23: [Steel Business] FY2024 Outlook
JFE Steel [Steel Business] FY2024 Outlook Business environment Demand for steel products in Japan and overseas is expected to be on par with the current fiscal year. • The domestic economy is expected to grow moderately. The automobile sector remains strong. Attention should be paid to the impact of
Slide 24: [Steel Business] FY2024 Outlook: Initiatives
JFE Steel [Steel Business] FY2024 Outlook Initiatives Promote a shift from quantity to quality to improve profitability. • Continuation of sales price improvement activities Pursuing sustainable price levels in order to meet cost increases in logistics and labor costs, etc. • Expanding sales of high
Slide 25: [Steel Business] Paths toward achieving the Seventh Medium-Term Plan
JFE Steel [Steel Business] Paths toward achieving the Seventh Medium-Term Plan In FY2023, segment profit excluding Inventory Valuation etc. in the steel business is expected to be 205.0 billion yen. In FY2024, due to steadily implementing various measures, including structural reforms, sales pri
Slide 26: [Engineering, Trading] Outlook for Fiscal Year 2024
JFE Engineering, JFE Shoji [Engineering、Trading] Outlook for Fiscal Year 2024 JFE Engineering Segment Profit Target (7th Medium-Term)：¥35bn. The company aims to increase orders and profits by continuous launching [Orders (billion yen)] of new businesses in the “Waste to Resource” and “Carbon Neutr
Slide 27: Topics
Topics Copyright © 2024 JFE Holdings, Inc. All Rights Reserved. 27
Slide 28: JFE Steel Launches Website Introducing Solution Business
JFE Steel JFE Steel Launches Website Introducing Solution Business Released on Jan. 26th, 2024 We provide technology and know-how that we have accumulated through manufacturing steel products not only to the steel industry but to a wide range of manufacturing customers as solution business. 6 so
Slide 29: DX Report
JFE-HD DX Report We have published 「DX report 2023」 to describe JFE’s initiatives for DX. Visit our company website. *English version is coming soon. ＜URL：https://www.jfe-holdings.co.jp/en/investor/library/dxreport/index.html＞ Table of Contents 1. On the publication of the DX REPORT 2023 ～Creating
Slide 30: Appendix(1) Profit/Loss Analysis
Appendix(1) Profit/Loss Analysis Copyright © 2024 JFE Holdings, Inc. All Rights Reserved. 30
Slide 31: Main Financial Data
JFE-HD Main Financial Data JAAP IFRS FY15 FY16 FY17 FY18 FY18 FY19 FY20 FY21 FY22 FY23 Forcast (bn. yen, times) (bn. yen, times) Ordinary Income 64.2 84.7 216.3 221.1 Business profit 232.0 37.8 -12.9 416.4 235.8 290.0 EBITDA 254.4 279.9 388.8 405.9 EBITDA ＊1 428.2 269.4 223.4 668.7 505.4 570.0 ROS 1
Slide 32: Main Performance & Profitability Targets and Results
JFE-HD Main Performance & Profitability Targets and Results The 7th mid-term FY2021 FY2022 FY2023 business plan Actual Actual Forecast FY2024 Business Profit ¥320.0 ¥ 416.4bn. ¥ 235.8bn. ¥290.0bn. Consolidated [Excluding Inventory Valuation etc.] bn. [¥2,224bn.] [¥162.8bn.] [¥295.0bn.] Profit attrib
Slide 33: Cash Flow Improvements, Debt/EBITDA Ratio
JFE-HD Cash Flow Improvements, Debt/EBITDA Ratio At the end of FY2023, the Debt/EBITDA ratio is expected to be x3.2. FY2023 （billion yen） Progress of Debt/EBITDA Ratio Consolidated Cash Flow Forecast （billion yen） Debt/EBITDA Ratio (Right Axis) Cash-in Cash-out 1,600 9.0 Net Profit CAPEX & 1,400 T
Slide 34: Financial Results for 3Q of Fiscal Year 2023
JFE Steel Financial Results for 3Q of Fiscal Year 2023 FY2021 FY2022 FY2023 Unit Full Full 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Year Year billion Revenue yen 638.5 771.9 832.8 930.2 3,173.4 932.6 986.3 986.9 975.3 3,881.1 917.2 948.6 915.6 Segment billion 69.7 88.8 93.5 71.7 323.7 93.0 55.2 21.8 (23.2)
Slide 35: ¥6.5bn. Decrease in JFE Steel's Segment Profit
JFE Steel ¥6.5bn. Decrease in JFE Steel’s Segment Profit (FY2023.2Q (Actual) vs. FY2023.3Q (Actual)) （billion yen） FY2023 Change JFE Steel Full 1Q 2Q 3Q 4Q Year (Actual) (Actual) (Actual) (Forecast) (Forecast) Segment Profit 68.1 54.7 48.2 29.0 200.0 (6.5) Excluding Inventory Valuation etc. 59.1 64.
Slide 36: ¥19.2bn. Decrease in JFE Steel's Segment Profit
JFE Steel ¥19.2bn. Decrease in JFE Steel’s Segment Profit (FY2023.3Q (Actual) vs. FY2023.4Q (Forecast)) （billion yen） FY2023 Change JFE Steel Full 1Q 2Q 3Q 4Q Year (Actual) (Actual) (Actual) (Forecast) (Forecast) Segment Profit 68.1 54.7 48.2 29.0 200.0 (19.2) Excluding Inventory Valuation etc. 59.1
Slide 37: Appendix(2) Business Environmental Indicators, etc.
Appendix(2) Business Environmental Indicators, etc. Copyright © 2024 JFE Holdings, Inc. All Rights Reserved. 37
Slide 38: Business environment (Trends by sector)
JFE Steel Business environment（ Trends by sector ） 【Domestic】 【Overseas】 • Each company has a backlog of orders and is highly ・In China, domestic demand has slumped due to a mobile Auto- motivated to produce. slow recovery in the real estate sector. Thin • Semiconductor supply risks are gradually im
Slide 39: Domestic Market Environment: Inventories of HR, CR and Coated Steel Sheet
JFE Steel Domestic Combined Inventories of HR, Market Environment CR and Coated Steel Sheet （Kt） （month） 5,000 5 Maker Whole Saler Coil Center Inventory Ratio(Right axis) 4,000 4 3,000 3 2,000 2 Change From From Nov,2023 Oct,2023 Nov,2022 previous previous 1,000 month year 1 Inventories -25 -450 3,8
Slide 40: Inventories of Plate and Wide Flange Shapes
JFE Steel Domestic Inventories of Plate (Plate Shear) Market Environment and Wide Flange Shapes Inventories of Wide Flange Shapes （kt） Inventories of Plate (Plate Shear) （month） （kt） Inventories （month） 500 3.5 250 Shipment 3.5 Inventory Ratio(Right axis) Inventories Inventory Ratio(Right axis) 450
Slide 41: Trend of Import Steel (Ordinary Steel)
JFE Steel Domestic Trend of Import Steel (Ordinary Steel) Market Environment （kｔ） 600 S.Korea China Taiwan Others 500 400 300 200 Change Nov, From From Oct, Nov, 2023 previous previous 2023 2022 100 month year Import Steel －49 ＋45 413 462 368 （kt） (‐10.6%) (+12.4%) 0 Jul Jan Mar May May Jul Sep Jan
Slide 42: Price Trend of Import Steel
JFE Steel Domestic Market Environment Price Trend of Import Steel （000yen/t ） 120 110 100 90 80 70 60 50 40 Oct Oct Oct Oct Oct Oct Jul Oct Jul Oct Jul Jan Jul Jan Apr Jul Jan Apr Jul Jan Apr Jul Jan Apr Jul Jan Apr Jan Apr Jan Apr Apr 2016 2017 2018 2019 2020 2021 2022 2023 Data: The Japan Iron and
Slide 43: Crude Steel & Im/Export, China
JFE Steel Overseas Crude Steel & Im/Export, China Market Environment （Mｔ） （Mｔ） 9 120 Export（Left axis） Import（Left axis） Crude steel（Right axis） 8 100 7 6 80 5 60 4 3 40 2 Dec, From Jan,-Dec, From Apr,-Dec, From 2023 Previous 2023 Jan,- 2023 Apr,- month 20 Dec,2022 Dec,2022 1 Crude Steel（Mt） 67.4 -1
Slide 44: Crude Steel & Im/Export, China
JFE Steel Overseas Crude Steel & Im/Export, China Market Environment （Mｔ） 30.0 100.0% Bar Rod & Wire Plate HR CR Change by Previous year(%) 50.0% 25.0 0.0% 20.0 -50.0% 15.0 -100.0% -150.0% 10.0 -200.0% Change Dec, From From Nov, Dec, 5.0 2023 Previous Previous 2023 2022 -250.0% Month Year -0.1 -0.0
Slide 45: Metal Spread Trend (Chinese Spot Basis)
JFE Steel Overseas Metal Spread Trend Market Environment (Chinese Spot Basis) （$/t) （$/t) 1000 1000 900 900 800 800 700 HRC 700 600 600 500 500 400 400 300 300 200 200 Metal 100 Spread 100 0 0 Metal Spread ＝ HRC Price － Raw Materials Cost *HRC Price： Chinese Spot basis Raw Materials Cost： Calculated
Slide 46: Raw materials market trends
JFE Steel Raw Materials Raw materials market trends Key raw materials • Both iron ore and coking coal remain at a high level and are expected to remain at current levels. (The effect of weather should be carefully observed.) Metals • Metals markets have been weak due to a weak European economy a
Slide 47: Trend of Sub Material's Market Price
(￠/lb) 60 110 160 210 260 600 1,000 1,400 1,800 2,200 2,600 2016.6 2016.6 2016.12 2016.12 FeCr (US$/t)FeMn 2017.6 2017.6 2017.12 2017.12 2018.6 2018.6 2018.12 2018.12 2019.6 2019.6 2019.12 2019.12 2020.6 2020.6 2020.12 2020.12 2021.6 2021.6 2021.12 2021.12 2022.06 2022.06 2022.12 2022.12 2023.06 202
Slide 48: Trend of Sub Material's Market Price
JFE Steel Raw Materials Trend of Sub Material’s Market Price （yen/ｔ） Scrap ($/B) Spot Bulker 70,000 100,000 90,000 60,000 80,000 50,000 70,000 60,000 40,000 50,000 40,000 30,000 30,000 20,000 20,000 10,000 10,000 0 2016.1 2016.7 2017.1 2017.7 2018.1 2018.7 2019.1 2019.7 2020.1 2020.7 2021.1 2021.7 2
Slide 49: Orders by Business Field
JFE Engineering Orders by Business Field （billion yen） Business FY2022 FY2023 Main orders received in FY2023 Change Field Actual Outlook ★・・・New projects received in 3Q of FY2023 Waste Construction works of domestic waste treatment facility to 216.9 247.0 30.1 [Mie, ★Hokkaido] Resource Renewal works
Slide 50: Links to the reports published during FY2023
JFE-HD Links to the reports published during FY2023 Report URL QR code JFE Group REPORT https://www.jfe- 2023 holdings.co.jp/en/investor/library/gro up-report/index.html Sustainability REPORT https://www.jfe- 2023 holdings.co.jp/en/sustainability/index. html Sustainability REPORT https://www.jfe- 20
Slide 51: Appendix(3) The 7th Medium-Term Business Plan
Appendix(3) The 7th Medium-Term Business Plan Copyright © 2024 JFE Holdings, Inc. All Rights Reserved. 51
Slide 52: Mid/long-term directions
JFE-HD Mid/long-term directions Biggest transformation in company’s history aimed at achieving global success JFE’s corporate vision Contributing to society with the world’s most innovative technology JFE’s mission To be essential to society’s sustainable development and to create safe, comfortable
Slide 53: Initiatives to achieve environmental and social sustainability
JFE-HD Initiatives to achieve environmental and social sustainability (helping to solve critical issues) E JFE Group Environmental Vision for 2050 • Aim to realize carbon neutral by 2050, taking climate change as an extremely important business concern for JFE • Accelerate R&D in new technologies an
Slide 54: JFE Group Environmental Vision for 2050
JFE-HD JFE Group Environmental Vision for 2050 Toward Carbon Neutrality by 2050 JFE Group Environmental Vision for 2050 （GX Investment during 7th mid-term business plan：340 billion yen) GX：Green transformation 1. Key environmental initiative under 7 th mid-term business plan • Steel business：Reducti
Slide 55: JFE Group's activities for Carbon neutrality
JFE-HD JFE Group’s activities for Carbon neautrality Steel Business: CO₂ emission reduction by 18% at the end of FY2024 (vs. FY2013) Through decarbonization in steel manufacturing processes etc., JFE Group aims to be carbon neutral. Engineering Business: Contribute to carbon neutrality in society on
Slide 56: [Steel Business] Roadmap for Carbon Neutrality
JFE Steel [Steel Business] Roadmap for Carbon Neutrality Revised our roadmap for realizing carbon neutrality in 2050, considering installing the technologies below in the concrete: Carbon recycling blast furnace: Each established technology to be installed in order (late 2030s） Hydrogen-based ir
Slide 57: Carbon-recycle Blast Furnace
JFE Steel Carbon-recycle Blast Furnace • Technologies for reducing CO₂ emissions from blast furnaces are necessary to maximize blast furnaces’ advantages such as mass production, high-efficiency production, and high-grade steel production • Combining carbon-recycling blast furnace with CCU enables t
Slide 58: Groupwide commercialization of offshore wind-power business
JFE-HD Groupwide commercialization of offshore wind-power business (Study feasibility) • Become a pioneer in offshore wind-power generation business by commercializing manufacture of monopile and other seabed-fixed structures. • Establish groupwide supply-chain such as monopile-structure manufacturi
Slide 59: Social sustainability: Safety management, HR issues
JFE-HD Social sustainability：Safety management, HR issues Further increase efforts to prevent accidents not only by using facilities but management also through safety education and obedience of rules, in order to achieve top-priority goal of zero major accidents. Safety Groupwide investment for saf
Slide 60: Social sustainability: Contribution to Regional Societies
JFE Engineering Social sustainability：Contribution to Regional Societies through Engineering Business • Expand bases of local production and local consumption business (Food-recycling business and regional PPS business) • Contribute to the regional society considering to expand combined utility serv
Slide 61: Establish economic sustainability (stable earnings power)
JFE-HD Establish economic sustainability (stable earnings power) Establish sufficient profitability and stable financial base for proactive business operation for the mid/long-term growth 1. Shift focus of domestic steel business from quantity to quality ーPursue world-class earnings power • Achieve
Slide 62: 7th mid-term business plan: Steel Business main initiatives
JFE Steel 7 th mid-term business plan <Steel Business> Aim to achieve world-class per-ton profit and enhance strategies for global growth Promote innovation for carbon neutrality Main initiatives 1. Transition to a lean, robust business structure by shifting focus from quantity to quality 2. Expand
Slide 63: Transition to a lean, robust business structure
JFE Steel Transition to a lean, robust business structure by shifting focus from quantity to quality Improve per-ton profit by both fixed cost reduction and increase of high value- added products ratio, and enhance earning base. Achieve world-class cost Expand margins and quality competitiveness and
Slide 64: Expand and Accelerate Overseas Business
JFE Steel Expand and Accelerate Overseas Business • Expand returns from 1. vertical specialization business such as steel production applied for automobiles • Further deepen integrated production in high-demand market (2. “Insider” business) • Expand 3. solution business, in which we provide cutting
Slide 65: Strategy to Capture Growing Demand for Electrical Steel Sheet
JFE Steel Examples of Steel Business’s Critical Initiatives: Strategy to Capture Growing Demand for Electrical Steel Sheet Domestic To expand non-oriented Overseas To conduct FS of grain-oriented electrical steel sheet (N/O) electrical-steel-sheet JV with JSW production capacity Released April 1, 20
Slide 66: Group-wide Strategy for Electrical Steel Sheet
JFE-HD JFE Group-wide Strategy to Capture Growing Demand for Electrical Steel Sheet（Steel Business and Trading Business） JFE Steel JFE Shoji Production of Expand production and supply Processing and electrical steel function of high value-added World’s No.1 global distribution distribution of sheets
Slide 67: 7th mid-term plan: Engineering Business
JFE Engineering 7 th mid-term business plan <Engineering Business> Expand sales revenue to 1-trillion-yen level in FY2030 Targets • Revenue 650.0 billion yen FY2024 • Segment Profit 35.0 billion yen （billion yen） （billion yen） 【Segment profit】 【Revenue】 1-trillion-yen level 40 35.0 1,000 650.0 30 24
Slide 68: Engineering Business's Main initiatives
JFE Engineering Engineering Business’s Main initiatives ーEnhancing mid/long-term priority areasー • Expand engineering business as a growth sector by helping to solve pressing issues in global society, in view of increasing importance of the environmental, recycling and renewable- energy fields. • Ex
Slide 69: 7th mid-term plan: Trading Business
JFE Shoji 7 th mid-term business plan <Trading Business> Establish growth foundation by enhancing SCM Target FY2024 Segment profit 40bn. （bn.） 40 【Segment Profit】 27.6 ¥40 billion 23.5 20.3 20 Equipment & Business Investment ： Approx. ¥120 billion over 4 years 0 4th mid-term ave. 5th mid-term ave. 6
Slide 70: Trading Business's Main initiatives
JFE Shoji Trading Business’s Main initiatives ーKey Strategies for growth, Strengthen purchasing and sales capabilitiesー Strengthen SCM of Automotive steel Fully Capture steel demand in Japan Enhance SCM for high-tensile steel both in Increase earnings by enhancing JFE Group’s overseas and domestic m
Slide 71: JFE Group's DX strategies
JFE-HD JFE Group’s DX strategies • Promote DX in every business area such as advancing productivity through innovation, transforming exiting businesses and creating new businesses. • Proactively invest money and human resource necessary for DX： DX investment approx. 120 billion yen over 4 years JFE
Slide 72: Balance Financial Soundness with Effective Investment
JFE-HD Balance Financial Soundness with Effective Investment based on a “select and concentrate” approach • Selective maintenance investment, focusing on investments for enhancing competitiveness and establishing stable profit base • Ensure earning source by asset compression 1. Equipment & Business
Slide 73: Main Financial Data and Performance & Profitability Targets
JFE-HD Main Financial Data and Performance & Profitability Targets 7 th mid-term FY2020 business plan Actual FY2024 Business profit ¥ 320.0 billion ¥ -12.9 billion Consolidated Profit attributable to owners of the parent ¥ 220.0 billion ¥ -21.8 billion ROE 10% -1.3% Debt/EBITDA About 3x 8.1x D/E*1 A
Slide 74: Appendix(4) JFE Steel Carbon Neutral Strategy Briefing
Appendix(4) JFE Steel Carbon Neutral Strategy Briefing Copyright © 2024 JFE Holdings, Inc. All Rights Reserved. 74
Slide 75: JFE Steel's Carbon Neutrality Vision 2050
JFE Steel’s Carbon Neutrality Vision 2050 Oxygen Fuel/oxygen + Store CO2 in slag/concrete CCS Storage Reduction gas powder material Converter CO2 CCS More energy-saving equipment Increased use of scrap Carbon-free (external conditions) Introduce EAFs electricity (external conditions) CCS Energy savi
Slide 76: JFE Steel's Transition: Direction and Challenges
JFE Steel’s Transition: Direction and Challenges ▶ Developing technologies to produce high-quality and high-functional steel in the GI Fund project by using technologies to utilize hydrogen in the blast furnace process and direct-reduction steelmaking as well as EAFs. ▶ Considering the transition of
Slide 77: JFE's Carbon Neutrality Action Plan
JFE’s Carbon Neutrality Action Plan ▶ JFE Steel is introducing low-carbon steel processes during its “transition period” to 2030. ▶ In its “innovation period” from 2030 to 2050, JFE Steel aims to develop and implement ultra- innovative technologies for carbon neutrality. Transition period Innovation
Slide 78: Progress on the CO2 Emissions Reduction Plan
Progress on the CO 2 Emissions Reduction Plan ▶ Moving forward according to the FY2022 plan, achieving a 13% reduction. Also expecting to achieve the FY2024 year end target. ▶ Making solid progress in investment approval and implementation to achieve the reduction targets. Already approved for appro
Slide 79: Projects Supported by the Green Innovation Fund
Projects Supported by the Green Innovation Fund ▶ Promoting the development of ultra-innovative technologies in the NEDO project on hydrogen utilization in iron and steelmaking processes, financed by the Green Innovation (GI) Fund. ▶ Started building a small test blast furnace (150m 3 ) in Chiba Dis
Slide 80: Overall Scale of GI Fund Projects
Overall Scale of GI Fund Projects ▶ Development toward Stage Gate Reviews scheduled mainly in FY2025–2026 ▶ Studies also underway with a view to actual implementation in 2030–2040s ★ Stage Gate Develop technologies & conduct Medium-scale Large/full-scale small-scale tests tests tests 2021〜2025 2026〜
Slide 81: Stimulating Demand for Green Steel
Stimulating Demand for Green Steel ▶ In the EU, green steel is branded and sold using a mass balance approach. ▶ Achieving 30% CO2 reduction by FY2030 will enable JFE Steel to supply up to 5M tons of green steel per year using the same approach. ▶ To create a carbon-neutral world, government policie
Slide 82: Collaborating with Society on Carbon Neutrality
Collaborating with Society on Carbon Neutrality ▶ While achieving carbon neutrality is a top management priority for JFE Steel, generating environmental value involves large investments and cost increases associated with transitioning, requiring efforts beyond the private company level. ▶ Mechanisms
Slide 83: Copyright © 2024 JFE Holdings, Inc. All Rights Reserved
Copyright © 2024 JFE Holdings, Inc. All Rights Reserved Copyright © 2024 JFE Holdings, Inc. All Rights Reserved. 83