Jfe Holdings, Inc. · TSE:5411
Jfe — Q1 FY2022 Earnings Presentation
74 slides from Jfe's earnings presentation, Aug 3, 2022
Slide 1: Financial Results for First Quarter of Fiscal Year 2022
Securities Code：5411.T JFE Group Financial Results for First Quarter of Fiscal Year 2022 ending March 31, 2023 JFE Holdings, Inc. August 3, 2022
Slide 2: Key Points of today's Announcement
JFE-HD Key Points of today’s Announcement Results • Business profit in 1Q of FY2022 was ¥116.6bn.(increased by ¥28.3bn. year-on-year) for 1Q of due to selling price improvements and inventory valuation gain because of the FY2022 rising price of coking coal, etc. • Full-year business profit is expect
Slide 3: A table of contents
A table of contents JFE Holdings’ Financial Results for First Quarter of Fiscal Year 2022 (April 1 to June 30, 2022) and Financial Forecasts for Fiscal Year 2022 (April 1, 2022, to March 31, 2023) Dividends Financial Results for First Quarter of Fiscal Year 2022 and Financial Forecast for Fisc
Slide 4: Consolidated Results for First Quarter of Fiscal Year 2022
Consolidated Results for First Quarter of Fiscal Year 2022 (April 1 to June 30, 2022) and Consolidated Financial Forecast for Fiscal Year 2022 (April 1, 2022 to March 31, 2023) 4
Slide 5: Financial Results and Forecast for Fiscal Year 2022
JFE-HD Financial Results and Forecast for Fiscal Year 2022 Business profit in 1Q of FY2022 was ¥116.6bn.(increased by ¥28.3bn. year-on-year) Full-year revenue is expected to be over ¥5 trillion., and full-year business profit is expected to be ¥235.0bn.(decreased by ¥181.4bn. year-on-year) FY202
Slide 6: Financial Results and Forecast for Fiscal Year 2022 (by Segment)
JFE-HD Financial Results and Forecast for Fiscal Year 2022 (by Segment) FY2021 Actual FY2022 Forecast Change （billion yen） 1Q 1H Full 1Q 1H Full 1Q 1H Full (Apr-Jun) Year (Apr-Jun) Year (Apr-Jun) Year Steel Business 638.5 1410.4 3,173.4 932.6 1975.0 4,100.0 294.1 564.6 926.6 Engineering 103.0 229.2
Slide 7: Business Environment and Earnings in the first Half of FY2022
JFE-HD Business Environment and Earnings in the first Half of FY2022 The current business environment has been significantly worse than the previous fiscal year when the steel market was strong. Despite zero-COVID policy constraints on economic activity, maintaining high steel production in Chin
Slide 8: Trend of Supply-Demand in China
JFE-HD Trend of Supply-Demand in China In the first half of CY2022, crude steel production continued to increase in anticipation to the Chinese government’s economic stimulus measures. The steel market in China deteriorated and exports increased due to sluggish domestic steel demand affected by co
Slide 9: Initiatives for Improving Sales Price in the first Half of FY2022
JFE-HD Initiatives for Improving Sales Price in the first Half of FY2022 In order to achieve the target of the mid-term plan –Shifting Focus from Quantity to Quality-, we have made further efforts to proceed with the price improvement initiatives. Reflections of key raw material cost to sales pr
Slide 10: Dividends
Dividends 10
Slide 11: Dividend
JFE-HD Dividend JFE Holdings has decided to pay an interim dividend of 40 yen per share at its Board of Directors. A decision regarding the year-end dividend has been postponed while the company carefully monitors its ongoing performance. Pay-out Ratio 160 31.9% 33.5% N/A N/A 28.0% - 140 Interim
Slide 12: JFE Steel
JFE Steel Financial Results for First Quarter of Fiscal Year 2022 and Financial Forecast for Fiscal Year 2022 12
Slide 13: Financial Forecast for Fiscal Year 2022
JFE Steel Financial Forecast for Fiscal Year 2022 FY2022 Forecast Change FY2021 Year-on-Year Unit Full Full Full 1Q year 1Q 2Q 1H 2H year 1Q year billion Revenue yen 638.5 3,173.4 932.6 1,042.4 1,975.0 2,125.0 4,100.0 294.1 (926.6) Segment billion 69.7 323.7 93.0 27.0 120.0 30.0 150.0 (23.3) (173.7)
Slide 14: 23.3bn. Increase in JFE Steel's Segment Profit
JFE Steel 23.3bn. Increase in JFE Steel’s Segment Profit (FY2021.1Q (Actual) vs. FY2022.1Q (Actual)) （ billion yen ） Change FY2021 FY2022 FY2021.1Q JFE Steel → 1Q 2Q 3Q 4Q Full Year 1Q FY2022.1Q Segment Profit 69.7 88.8 93.5 71.7 323.7 93.0 ＋23.3 1. Cost +5.0 • Capital investment effect etc. 2. Volu
Slide 15: Current Business Environment (Domestic)
JFE Steel Current Business Environment（Domestic） In the automotive sector, the decline in auto production has been prolonged due to the remaining constraints on parts supply. The COVID-19 has gradually subsided in China, the supply chain activity level is expected to gradually recover toward the
Slide 16: Current Business Environment (Overseas)
JFE Steel Current Business Environment（Overseas） As the global economy recovers, overseas demand for steel products continues to recover. Demand for steel products is currently weak, but due to the end of the rainy season in Asia and economic stimulus measures by the Chinese government, demand f
Slide 17: Raw materials (Steel Business)
JFE Steel Raw materials（Steel Business） Key raw material • Iron ore remained weak due to sluggish demand for steel products in China. • Coking coal prices are on a downward trend from their recent peak due to the recent deterioration in overseas steel prices. • As the supply and demand of steel pr
Slide 18: 173.7bn. Decrease in JFE Steel's Segment Profit
JFE Steel 173.7bn. Decrease in JFE Steel’s Segment Profit (FY2021 (Actual) vs. FY2022 (Forecast)) FY2021 FY2022 Change JFE Steel (Actual) (Forecast) (billion yen) Segment Profit 323.7 150.0 (173.7) 1. Cost • Cost reductions +23.0 +10.0 • Chiba No.6 blast furnace refurbishment -13.0 2. Volume and Mix
Slide 19: Impact of the depreciation of the yen (steel business)
JFE Steel Impact of the depreciation of the yen(steel business) Due to soaring raw material prices and falling overseas steel prices, the foreign currency balance of trade(imports and exports) is substantially overpaid. The depreciation of the yen makes worse profits (A little less than less tha
Slide 20: Trend of profit for subsidiary and affiliated companies in steel business
JFE Steel Trend of profit for subsidiary and affiliated companies in steel business Profit of subsidiary and affiliated companies in FY2022 is expected to be second high due to initiatives of subsidiary and affiliated companies to improving their profit, despite the severe business environment Dom
Slide 21: JFE Engineering
JFE Engineering Financial Forecast for Fiscal Year 2022 21
Slide 22: Financial Forecast for Fiscal Year 2022
JFE Engineering Financial Forecast for Fiscal Year 2022 Current Business Environment/Overview of Financial Status Domestic demand both in the environment & energy sector and infrastructure sector is expected to remain solid. Segment profit is expected to decrease by ¥6.0bn. year-on-year to ¥20.0
Slide 23: JFE Shoji
JFE Shoji Financial Forecast for Fiscal Year 2022 23
Slide 24: Financial Forecast for Fiscal Year 2022
JFE Shoji Financial Forecast for Fiscal Year 2022 Current Business Environment/Overview of Financial Status In the first half of FY2022, segment profit is expected to increase year-on-year for both JFE Shoji itself and group companies due to strong sales of steel products and raw materials in Japa
Slide 25: Topics
Topics Initiatives to achieve carbon neutrality in Steel business JFE Steel Carbon Neutral Strategy Briefing scheduled for September 1 25
Slide 26: Overview of Process Conversion toward 2050
Overview of Process Conversion toward 2050 Develop super-innovative Establish and install technologies to realize super-innovative carbon-neutrality technologies -18% • Install EAF -30% Carbon • Expand use of reduced iron or more Arrange the best processes Neutrality along with external conditions S
Slide 27: Carbon-Neutral Vision
Immo Reduce Expansion of energy bilization conservation facilities Expansion of scrap use Use of CCS (External conditions) 2050 Installation of Oxygen Fuel, electric arc furnace Carbon-Neutral gas Oxygen, Powder raw materials Converter CCS Image CO2 Vision Carbon-Free Power (External conditions) EAF
Slide 28: Construction of Carbon-Recycle Blast Furnace and Coke Oven
Construction of Carbon-Recycle Blast Furnace and Coke Oven Carbon-Recycle Blast Furnace (Project of Green Innovation Fund) Construction of new coke ovens Emission reduction by carbon-recycle blast furnace ・Reduce CO2 emission by installing high efficient new coke oven CO2 from blast furnace is ・Sati
Slide 29: Framework for CCUS Green Infrastructure Study
Framework for CCUS Green Infrastructure Study ●CCUS(※1) Green Infrastructure Study Team was established in the Carbon Neutral Promotion Project Team. ●Carry out existing research and development and promote studies on the use of CO2 separation, capture, utilization and storage technologies in collab
Slide 30: Appendix(1) Profit/Loss Analysis
Appendix(1) Profit/Loss Analysis 30
Slide 31: Main Financial Data
JFE-HD Main Financial Data J-GAAP IFRS FY13 FY14 FY15 FY16 FY17 FY18 FY18 FY19 FY20 FY21 (bn. Yen, times) (bn. Yen, times) Ordinary Income 173.6 231.0 64.2 84.7 216.3 221.1 Business profit 232.0 37.8 -12.9 416.4 EBITDA 368.9 421.5 254.4 279.9 388.8 405.9 EBITDA ＊1 428.2 269.4 223.4 668.7 ROS ＊2 6.0%
Slide 32: Main Financial Data and Performance & Profitability Targets
JFE-HD Main Financial Data and Performance & Profitability Targets 7 th mid-term FY2020 FY2021 FY2022 business plan FY2024 Actual Actual Forecast Business profit ¥320.0 billion ¥-12.9 billion ¥416.4 billion ¥235.0 billion Profit attributable to Consolidated owners of the parent ¥220.0 billion ¥-21.8
Slide 33: 21.3bn. Increase in JFE Steel's Segment Profit
JFE Steel 21.3bn. Increase in JFE Steel’s Segment Profit (FY2021.4Q (Actual) vs. FY2022.1Q (Actual)) FY2021 FY2022 Change JFE Steel 1Q (billion 1Q 2Q 3Q 4Q Full Year yen) Segment Profit 69.7 88.8 93.5 71.7 323.7 93.0 +21.3 1. Cost ±0.0 2. Volume and Mix (7.0) 3. Sales and • Metal spread was deterior
Slide 34: 66.0bn. Decrease in JFE Steel's Segment Profit
JFE Steel 66.0bn. Decrease in JFE Steel’s Segment Profit (FY2022.1Q (Actual) vs. FY2022.2Q (Forecast)) FY2022 Forecast Change JFE Steel (billion yen) 1Q(Actual) 2Q(Forecast) 1H Segment Profit 93.0 27.0 120.0 (66.0) 1. Cost ±0.0 2. Volume and Mix +1.0 3. Sales and • Prices of main raw materials and m
Slide 35: 45.2bn. Decrease in JFE Steel's Segment Profit
JFE Steel 45.2bn. Decrease in JFE Steel’s Segment Profit (FY2021.2H (Actual) vs. FY2022.1H (Forecast)) FY2021 FY2022 Change JFE Steel 2H(Actual) 1H(Forecast) (billion yen) Segment Profit 165.2 120.0 (45.2) 1. Cost ±0.0 2. Volume and Mix (5.0) 3. Sales and • Improved spreads due to higher selling pri
Slide 36: 90.0bn. Decrease in JFE Steel's Segment Profit
JFE Steel 90.0bn. Decrease in JFE Steel’s Segment Profit (FY2022.1H vs. FY2022.2H) FY2022 Forecast Change JFE Steel 1H 2H Full Year (billion yen) Segment Profit 120.0 30.0 150.0 (90.0) 1. Cost ±0.0 2. Volume and Mix ±0.0 3. Sales and • Prices of main raw materials and metals remained Raw materials +
Slide 37: 385.0bn. Decrease in JFE Steel's Segment Profit
JFE Steel 385.0bn. Decrease in JFE Steel’s Segment Profit (FY2021.1H (Actual) vs. FY2022.1H (Forecast)) FY2021 FY2022 Change JFE Steel 1H(Actual) 1H(Forecast) (billion yen) Segment Profit 158.5 120.0 (38.5) 1. Cost ＋10.0 • Capital investment effect etc. 2. Volume and Mix +5.0 3. Sales and • Improved
Slide 38: Appendix(2) Business Environmental Indicators, etc.
Appendix(2) Business Environmental Indicators, etc. 38
Slide 39: Combined Inventories of HR, CR and Coated Steel Sheet
JFE Steel Domestic Combined Inventories of HR, Market Environment CR and Coated Steel Sheet （000ｔ） （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 Jun, 2022 May, 2022 Jun, 2021 1,000 previous previous 1 month year Inventories －14.0 +
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 Plate (Plate Shear) （Month）（000ｔ） Inventories of Wide Flange Shapes （Month） （000ｔ） 500 3.5 250 Inventories 3.5 Shipment Inventories Inventory Ratio(Right axis) Inventory Ratio(Right axis) 4
Slide 41: Trend of Import Steel (Ordinary Steel)
JFE Steel Domestic Market Environment Trend of Import Steel (Ordinary Steel) （000ｔ） 600 S.Korea China Taiwan Others 500 400 300 200 Unit:000t Jun, From From May, Jun, 100 2022 Previous Previous 2021 2021 Month Year +31 +40 Import Steel 379 348 339 (+8.9%) (+12.1%) 0 May Jun Jul May Jun Jul May Jun J
Slide 42: Price Trend of Import Steel
JFE Steel Domestic Market Environment Price Trend of Import Steel （000 yen /ｔ） 110 100 90 80 70 60 50 40 Mar Mar Mar Mar Mar Mar Mar May May May May May May May Jul Jul Sep Jul Jul Jul Jan Nov Jan Nov Jan Nov Jan Nov Jan Nov Jan Sep Sep Sep Jul Nov Jan Sep Sep 2016 2017 2018 2019 2020 2021 2022 Data
Slide 43: Crude Steel & Im/Export, China
JFE Steel Overseas Market Environment Crude Steel & Im/Export, China （Mｔ） Export（Left axis） Inport（Left axis） Crude steel（Right axis） （Mｔ） 9 120 8 100 7 6 80 5 60 4 3 Jun, From Apr,-Jun, From 40 2022 previous 2022 Apr,-Jun, 2 month 2021 Crude Steel（Mt） 90.7 -6.1% 280.1 -6.1% 20 1 Export（Mt） 7.6 -2.6
Slide 44: Inventories in China by Product
JFE Steel Overseas Market Environment Inventories in China by Product （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 5.0 Jun, From From May, Jun, 2022 Previous Previous 2022 2021 -250.0% Month Year Inventori
Slide 45: Metal Spread Trend (Chinese Spot Basis)
Overseas Metal Spread Trend JFE Steel Market Environment (Chinese Spot Basis) （$/t) （$/t) 1000 1000 900 900 800 800 700 700 HRC 600 600 500 500 400 400 300 300 200 200 Metal Spread 100 100 0 0 Metal Spread ＝ HRC Price － Raw Materials Cost *HRC Price： Chinese Spot basis Raw Materials Cost： Calculated
Slide 46: Trend of Sub Material's Market Price
(￠/lb) 60 110 160 210 260 1,000 1,400 2,200 2,600 1,800 600 2016.1 2016.1 2016.7 FeCr 2016.7 (US$/t)FeMn 2017.1 2017.1 2017.7 2017.7 2018.1 2018.1 2018.7 2018.7 2019.1 2019.1 2019.7 2019.7 2020.1 2020.1 2020.7 2020.7 Raw Materials 2021.1 2021.1 2021.7 2021.7 2022.01 2022.01 2022.07 2022.07 (US$/t) 4
Slide 47: 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 48: Strategic Investments
JFE Steel Progress of Initiatives of Steel Business （Structural Reforms and Strategic Investment in Japan） Facilities ～FY19 FY20 FY21 FY22 FY23～ Upstream Facilities To be shut down (~Sep. 2023) Structural Keihin Reforms Hot rolling Facilities To be shut down District (~Sep. 2023) Cold-rolling & Hot-
Slide 49: Orders by Business Area
JFE Engineering Orders by Business Area （bn.） Business FY2021 FY2022 Change Main Orders received in FY2022 1Q Area Actual Forecast Renewal construction of domestic waste treatment plant Waste [Hokkaido] to 203.9 220.0 16.1 Resource Construction works of overseas waste treatment and power plant [Germ
Slide 50: Links to the reports published during FY2021
JFE-HD Links to the reports published during FY2021 Report URL QR code JFE Group REPORT https://www.jfe- 2021 holdings.co.jp/en/investor/library/gro up-report/index.html JFE Group CSR https://www.jfe- REPORT 2021 holdings.co.jp/en/csr/data/index.html JFE Group CSR https://www.jfe- REPORT 2021 holdin
Slide 51: Appendix(3) The 7th Medium-Term Business Plan
Appendix(3) The 7th Medium-Term Business Plan 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: JFE Group Environmental Vision for 2050
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: JFE 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 business 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 business 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: Copyright © 2022 JFE Holdings, Inc. All Rights Reserved
Copyright © 2022 JFE Holdings, Inc. All Rights Reserved 74