Jfe Holdings, Inc. · TSE:5411

Jfe — FY2019 Earnings Presentation

19 slides from Jfe's earnings presentation, Mar 27, 2020

1. Slide 1: Revision of Financial Results Forecasts in FY2019 ended March 31, 2020 etc.

   Securities Code: 5411.T JFE Group Revision of Financial Results Forecasts in FY2019 ended March 31, 2020 etc. JFE Holdings, Inc. March 27, 2020

2. Slide 2: A table of contents

   A table of contents 1. JFE Holdings’ Revised Financial Results Forecasts for Fiscal Year 2019 (ending March 31, 2020) 2. JFE Steel’s Optimization of Domestic Production Operations through Structural Reforms 3. Equity and Business Alliance between Japan Marine United and Imabari Shipbuilding This pre

3. Slide 3: JFE Holdings' Revised Financial Results Forecasts for Fiscal Year 2019

   JFE Holdings’ Revised Financial Results Forecasts for Fiscal Year 2019 (ending March 31, 2020) 3

4. Slide 4: Revised Financial Results Forecasts for FY2019

   JFE-HD Revised Financial Results Forecasts for FY2019 FY2019 FY2019 Previous Forecast Updated Forecast Change （billion yen） Feb. 12 2020 Mar. 27 2020 (B-A) (A) (B) Revenue 3,720.0 3,720.0 － Business Profit 45.0 45.0 － Finance Income/Costs (13.0) (13.0) － Segment Profit 32.0 32.0 － Exceptional Items

5. Slide 5: JFE Steel's Optimization of Domestic Production Operations through Structural Reforms

   JFE Steel’s Optimization of Domestic Production Operations through Structural Reforms 5

6. Slide 6: Business Environment

   JFE Steel Business Environment  Current Business Environment  Slump in steel demand among manufacturing industries, due to US-China trade tensions  Rising raw-material prices driven by China’s increased output of crude steel  Rising prices for various commodities and services including auxiliary

7. Slide 7: Main Structural Reforms

   JFE Steel Main Structural Reforms Review production operations by strategically focusing resources on key products and production operations to enhance competitiveness • Transition to a domestic operating configuration based on 7 BFs, down from 8 at present: production capacity to be reduced by arou

8. Slide 8: Expected Effects and Impacts Brought from These Structural Reforms

   JFE Steel Expected Effects and Impacts Brought from These Structural Reforms • Impairment losses to be recognized in its FY2019 accounts in accordance with these structural reforms : around -220 billion yen in total • Chiba：around -130 billion yen • Keihin：around -90 billion yen • Reduction of fixed

9. Slide 9: Measures of Structural Reforms (Roadmap)

   JFE Steel Measures of Structural Reforms（Roadmap） Special Initiative Headquarters (Head：JFE Steel President Yoshihisa Kitano） will be established on April 1, 2020. Disclosed this time Planning to be shut down In operation Planning to operate (in progress) FY19 FY20 FY21 FY22 FY23 Shut down Upstream

10. Slide 10: Production Framework after Restructuring

    JFE Steel Production Framework after Restructuring West Japan Works 3 BFs 3 BFs 1 Electric Furnace Sheets Plates Sheets Plates Bars & Wire Rods Electrical Tin Mill product Shapes Steel Sheets Shapes Bars & UOE Steel Pipes Slabs Wire Rods Slabs East Japan Works 1 BF → 0 1 BF Iron Plates Sheets Powder

11. Slide 11: Strategic Roles of Each District

    JFE Steel Strategic Roles of Each District • Enhance the overall competitiveness of its BF Production base in East Japan to manufacture integrated steelworks primarily automotive steel sheet as well as stainless steel and iron powder continue • Maximize manufacturing to function as an integrated bla

12. Slide 12: Related Growth Strategies

    JFE Steel Related Growth Strategies JFE Steel aims to strengthen its sustainable growth and further enhance the company’s corporate value over the long term with financial soundness. Domestic Attempt to further strengthen competitiveness by investing strategically in its domestic steelworks Overseas

13. Slide 13: Stakeholder Consideration

    JFE Steel Stakeholder Consideration • Going forward, JFE Steel will provide detailed explanations of these initiatives to all stakeholders, including customers, business partners, employees, local communities and governments, shareholders and investors. • Employment for 1,200 people working at facil

14. Slide 14: Equity and Business Alliance between Japan Marine United and Imabari Shipbuilding

    Equity and Business Alliance between Japan Marine United and Imabari Shipbuilding 14

15. Slide 15: Japan Marine United (JMU) Equity and Business Alliance with Imabari Shipbuilding

    JFE-HD Japan Marine United（JMU） Equity and Business Alliance with Imabari Shipbuilding March 27, 2020 Reached final agreement on equity and business alliance and establishment of JV between JMU and Imabari Shipbuilding. Overview of the equity and business alliance* （aim to start on Oct. 1, 2020）  I

16. Slide 16: Appendix

    Appendix 16

17. Slide 17: Main Facilities Scheduled for Shutdown 1

    JFE Steel Main Facilities Scheduled for Shutdown１ （* indicates already disclosed） District Facility Details Original Startup Shutdown Timing Keihin No.2 Blast Furnace Furnace volume: 5,000㎥ March 2004 By FY2023 Shaft Furnace Furnace volume: 172㎥ August 2008 No.1 Sintering Machine Grate area: 450㎡ Oc

18. Slide 18: Main Facilities Scheduled for Shutdown 2

    JFE Steel Main Facilities Scheduled for Shutdown 2 （* indicates already disclosed） District Facility Details Original Startup Shutdown Timing Chiba *No.2 Tandem Mill Thickness: 0.1~0.6㎜ May 1963 By FY2022 Width: 600~1,100㎜ *No.2 CAL Thickness: 0.17~0.6㎜ July 1980 Within FY2019 Width: 600~1,250㎜ *No.

19. Slide 19: Copyright © 2020 JFE Holdings, Inc. All Rights Reserved

    Copyright © 2020 JFE Holdings, Inc. All Rights Reserved 19

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