Jfe Holdings, Inc. · TSE:5411

Jfe — H1 FY2017 Earnings Presentation

63 slides from Jfe's earnings presentation, Nov 1, 2017

  1. Slide 1: Financial Results in First Half of Fiscal Year 2017

    JFE Group Financial Results in First Half of Fiscal Year 2017 ending March 31, 2018 JFE Holdings, Inc. November 1, 2017

  2. Slide 2: A table of contents

    A table of contents  JFE Holdings’ Financial Results in First Half of Fiscal Year 2017 (April 1 to September 30, 2017) and Financial Forecasts for Fiscal Year 2017 (April 1, 2017 to March 31, 2018)  JFE Steel  JFE Engineering  JFE Shoji  Dividends This presentation material is for information a

  3. Slide 3: Consolidated Results in First Half of Fiscal Year 2017

    Consolidated Results in First Half of Fiscal Year 2017 (April 1 to September 30, 2017) 33

  4. Slide 4: Financial Results in First Half of Fiscal Year 2017

    JFE-HD Financial Results in First Half of Fiscal Year 2017 (billion yen) FY2016 FY2017 Change 1H (Apr-Sep) 1H (Apr-Sep) Net Sales 1,499.5 1,725.3 225.8 Operating Income 4.0 96.5 92.5 Non-operating Income (Expenses) (14.1) 4.9 19.0 Ordinary Income (Loss) (10.1) 101.4 111.5 Extraordinary Profit 3.5 19

  5. Slide 5: Financial Results in First Half of Fiscal Year 2017 (by Segment)

    JFE-HD Financial Results in First Half of Fiscal Year 2017 (by Segment) (billion yen) FY2016 FY2017 Change 1H (Apr-Sep) 1H (Apr-Sep) Steel Business 1,072.4 1,294.7 222.3 Engineering Business 175.3 160.2 (15.1) Trading Business 775.8 916.2 140.4 Adjustments (524.0) (645.9) (121.9) Net Sales 1,499.5 1

  6. Slide 6: Financial Results in First Half of Fiscal Year 2017 (by Segment)

    JFE-HD Financial Results in First Half of Fiscal Year 2017 (by Segment) (billion yen) FY2017 1H (Apr-Sep) Previous Actual Change Forecasts Results Steel Business 1,300.0 1,294.7 (5.3) Engineering Business 160.0 160.2 0.2 Trading Business 905.0 916.2 11.2 Adjustments (665.0) (645.9) 19.1 Net Sales 1,

  7. Slide 7: Forecasts of Consolidated Financial Results in Fiscal Year 2017

    Forecasts of Consolidated Financial Results in Fiscal Year 2017 (April 1, 2017 to March 31, 2018) 77

  8. Slide 8: Financial Forecasts for Fiscal Year 2017

    JFE-HD Financial Forecasts for Fiscal Year 2017 (billion yen) Previous Forecasts Updated Forecasts (Aug. 1, 2017) (Nov. 1, 2017) Change 1H Full year 1H (A) Full year 1H Full year Net Sales 1,700.0 1,725.3 3,650.0 25.3 Operating Income 100.0 96.5 210.0 (3.5) Non-operating Income 0.0 4.9 (10.0) 4.9 (E

  9. Slide 9: Financial Forecasts for Fiscal Year 2017 (by Segment)

    JFE-HD Financial Forecasts for Fiscal Year 2017 (by Segment) (billion yen) Previous Forecasts Updated Forecasts Change (Aug. 1, 2017) (Nov. 1, 2017) 1H Full year 1H (A) Full year 1H Full year Steel Business 1,300.0 1,294.7 2,720.0 (5.3) Engineering Business 160.0 160.2 420.0 0.2 Trading Business 905

  10. Slide 10: Financial Forecasts for Fiscal Year 2017

    JFE-HD Financial Forecasts for Fiscal Year 2017 (billion yen) FY2016 (A) FY2017 (F) Change 1H Full year 1H (A) Full year 1H Full year Net Sales 1,499.5 3,308.9 1,725.3 3,650.0 225.8 341.1 Operating Income 4.0 96.7 96.5 210.0 92.5 113.3 Non-operating Income (14.1) (12.0) 4.9 (10.0) 19.0 2.0 (Expenses

  11. Slide 11: Financial Forecasts for Fiscal Year 2017 (by Segment)

    JFE-HD Financial Forecasts for Fiscal Year 2017 (by Segment) (billion yen) FY2016 (A) FY2017 (F) Change 1H Full year 1H (A) Full year 1H Full year Steel Business 1,072.4 2,349.1 1,294.7 2,720.0 222.3 370.9 Engineering Business 175.3 426.1 160.2 420.0 (15.1) (6.1) Trading Business 775.8 1,671.0 916.2

  12. Slide 12: JFE Steel: Financial Results in First Half of Fiscal Year 2017

    ＪＦＥ Steel Financial Results in First Half of Fiscal Year 2017 12 12

  13. Slide 13: Production and Shipment

    JFE Steel Production and Shipment FY2016 FY2017 Unit 1Q 2Q 1H 3Q 4Q 2H 1Q 2Q 1H Crude Steel (Standalone) Mt 6.94 7.06 14.00 7.12 7.02 14.13 28.14 7.12 6.98 14.10 Crude Steel (Consolidated) Mt 7.52 7.62 15.14 7.66 7.61 15.27 30.41 7.53 7.38 14.91 Shipment (Standalone) Mt 6.26 6.34 12.60 6.43 6.68 13.

  14. Slide 14: 19.7 Billion Yen increase in JFE Steel's Ordinary Income

    JFE Steel 19.7 Billion Yen increase in JFE Steel’s Ordinary Income (FY16 2H vs. FY17 1H) (billion yen) FY16 2H FY17 1H Change JFE Steel Actual Actual 2H → 1H Ordinary 64.9 84.6 19.7 Income  Cost reductions ＋ 15.0  Volume and Mix － 3.0  Sales and Raw materials ＋ 70.0  Inventory valuation － 67.0 

  15. Slide 15: 0.4 Billion Yen decrease in JFE Steel's Ordinary Income

    JFE Steel 0.4 Billion Yen decrease in JFE Steel’s Ordinary Income (FY17 1H (Forecast) vs. FY17 1H (Actual)) (billion yen) FY17 1H FY17 1H Change JFE Steel Forecast Actual 1H (F) → (A) Ordinary 85.0 84.6 (0.4) Income  Cost reductions ± 0.0  Volume and Mix － 8.0  Sales and Raw materials ± 0.0  Inv

  16. Slide 16: JFE Steel: Financial Forecasts for Fiscal Year 2017

    ＪＦＥ Steel Financial Forecasts for Fiscal Year 2017 16 16

  17. Slide 17: Current Business Environment (Domestic)

    JFE Steel Current Business Environment (Domestic) Domestic ordinary steel orders recorded +1.8% growth on a year-on-year basis in January to August period. By segment steady orders for automobile use recorded +8.2% growth and orders for construction use recorded +1.3% growth thanks to urban redeve

  18. Slide 18: Domestic Market Environment: 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 Maker Whole Saler 4 Coil Center Inventory Ratio (Right) 4,500 4,000 3 3,500 3,000 2,500 2 2,000 1,500 1 1,000 Sep, 2017 500 4,141kt 0 0 Apr Apr Apr Apr Apr Aug Aug Aug Aug Aug Oct Oct Oct

  19. Slide 19: Domestic Market Environment: 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) Inventories of Wide Flange Shapes （000t） （Month） (000t) (Month) Inventories 450 Inventories Inventory Ratio 3.0 250 4 Shipment Inventory Ratio (Right) 3.5 2.5 200 400 3

  20. Slide 20: Domestic Market Environment: Trend of Import Steel

    0 100 200 300 400 500 600 Jan Feb Mar （000t） Apr May Jun 2013 Jul Aug Sep Oct Nov Dec Jan Feb Mar Domestic Apr May Jun 2014 Jul Market Environment Aug S. Korea Sep Oct Nov Dec Jan China Feb Mar Apr May Jun 2015 Jul Taiwan Aug Sep Oct Nov Dec Jan Others (Ordinary Steel) Feb Mar Apr May Jun Trend of I

  21. Slide 21: Current Business Environment (Overseas)

    JFE Steel Current Business Environment (Overseas) Steel demand in China remains robust thanks to economic stimulus measures etc. Chinese apparent crude steel consumption increased by 3.9%, auto production increased by +5.2% and investment in fixed assets increased by +7.5% on a year- on-year basis

  22. Slide 22: Overseas Market Environment: Crude Steel & Im/Export, China

    JFE Steel Overseas Market Environment Crude Steel & Im/Export, China (Mt) Export(Left) Import(Left) Crude Steel (Right) (Mt) 12 80 70 10 60 8 50 6 40 30 4 20 2 10 0 0 Mar Mar Mar Mar Mar May May May May May Sep Sep Sep Sep Sep Jun Jul Jun Jul Jun Jul Jun Jul Jun Jul Feb Feb Feb Feb Feb Apr Apr Apr A

  23. Slide 23: Overseas Market Environment: Inventories in China by Products

    JFE Steel Overseas Market Environment Inventories in China by Products （000t） 35,000 Bar Rot & Wire Plate HR CR Change by previous year(%) 100% 30,000 50% 25,000 0% 20,000 -50% 15,000 -100% 10,000 -150% 5,000 -200% 0 -250% Feb Feb Feb Feb Feb Apr Apr Apr Apr Apr Aug Aug Aug Aug Aug Jan Jan Jan Jan J

  24. Slide 24: Overseas Market Environment: Metal Spread Trend

    JFE Steel Overseas Metal Spread Trend Market Environment (Chinese Spot Basis) ($/t) ($/t) 700 700 600 600 HRC 500 500 400 400 300 300 200 200 100 100 Metal Spread 0 0 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Oct-13 Oct-12 Oct-14 Oct-15 Oct-16 Oct-17 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jan-15

  25. Slide 25: Raw Materials Price

    JFE Steel Raw Materials Raw Materials Price （$/DMT） Iron ore (iron ore fines from Australia) （$/WMT） Coking Coal （Hard Coking Coal from Australia) $100 $400 鉄鉱石 ＦＯＢ 豪州強粘炭FOB 鉄鉱石 ターム契約FOB 豪州強粘炭 ターム契約FOB $90 $350 $80 $300 $70 $250 $60 $200 $50 $150 $40 $100 $30 $50 Hard Coaking Coal Term-contract FOB

  26. Slide 26: Financial Forecasts for FY2017 of JFE Steel

    JFE Steel Financial Forecasts for FY2017 of JFE Steel FY2016 FY2017 Full year 1Q 2Q 1H 2H Full year Actual Actual Actual Actual Forecast Forecast Billion Net Sales Yen 2,349.1 636.4 658.3 1,294.7 1,425.3 2,720.0 Billion Ordinary Income 40.5 48.6 36.0 84.6 65.4 150.0 Yen （ROS） [1.7%] [7.6%] [5.5%] [6

  27. Slide 27: 19.2 Billion Yen decrease in JFE Steel's Ordinary Income

    JFE Steel 19.2 Billion Yen decrease in JFE Steel’s Ordinary Income (FY17 1H (Actual) vs. FY17 2H (Forecast)) (billion yen) FY2017 (Forecast) Change JFE Steel 1H 2H Full year 1H→2H Ordinary 84.6 65.4 150.0 (19.2) Income  Cost reductions ＋ 10.0  Volume and Mix ＋ 9.0 ・Increase in depreciation cost 

  28. Slide 28: 109.5 Billion Yen increase in JFE Steel's Ordinary Income

    JFE Steel 109.5 Billion Yen increase in JFE Steel’s Ordinary Income (FY16 (Actual) vs. FY17 (Forecast)) (billion yen) FY16 FY17 Change JFE Steel Actual Forecast FY16→17 Ordinary 40.5 150.0 109.5 Income  Cost reductions ＋ 45.0  Volume and Mix ＋ 8.0  Sales and Raw materials ＋ 110.0  Inventory valu

  29. Slide 29: 0 Billion Yen change in JFE Steel's Ordinary Income

    JFE Steel 0 Billion Yen increase in JFE Steel’s Ordinary Income (FY17 (Previous Forecast) vs. FY17 (Updated Forecast)) (billion yen) FY17 FY17 Change JFE Steel Previous Updated FY17 → 17 Ordinary 150.0 150.0 0.0 Income  Cost reductions ± 0.0  Volume and Mix － 7.0  Sales and Raw materials ＋ 5.0 

  30. Slide 30: JFE Steel Joint Venture to Launch Hot-dip Galvanized and Colored Flat Steel Products Business

    Joint Venture to Launch JFE Steel Hot-dip Galvanized and Colored Flat Steel Products Business for the Building and Construction Sector in Myanmar （announced on October 31, 2017） 【The aim of the business】 【Location】 ◆The demand for flat steel products for the building and construction use has been ex

  31. Slide 31: JFE Engineering: Financial Forecasts for Fiscal Year 2017

    ＪＦＥ Engineering Financial Forecasts for Fiscal Year 2017 31 31

  32. Slide 32: Financial Forecasts for FY17 of JFE Engineering

    JFE Engineering Financial Forecasts for FY17 of JFE Engineering (billion yen） FY2017 (previous) FY2017 (updated) Change 1H Full year 1H(A) Full year 1H Full year Orders 240.0 222.2 500.0 (17.8) Net Sales 160.0 160.2 420.0 0.2 Ordinary Income 1.5 25.0 2.5 25.0 1.0 0.0 【Change】 (Previous forecasts to

  33. Slide 33: Financial Forecasts for FY17 of JFE Engineering

    JFE Engineering Financial Forecasts for FY17 of JFE Engineering (billion yen） FY2016(A) FY2017 (F) Change 1H Full year 1H(A) Full year 1H Full year Orders 186.9 424.4 222.2 500.0 35.3 75.6 Net Sales 175.3 426.1 160.2 420.0 (15.1) (6.1) Ordinary Income 7.6 26.6 2.5 25.0 (5.1) (1.6) 【Change(Full year)

  34. Slide 34: Classification of placed orders

    JFE Engineering Classification of placed orders （billion yen） FY2016 FY2017 Category Change Main Orders (FY2017 1H) (A) (F) - Improvement works of the waste incineration plants (2 places) - Construction of the waste to energy plant in Meguro-Ward Environment 157.4 200.0 42.6 - Startup of Composite B

  35. Slide 35: Startup of Japanese Largest Composite Biomass Power PFI Project

    JFE Engineering Startup of Japanese Largest Composite Biomass Power PFI Project （announced on October 4, 2017）  Implement Design and Construction of the plant, and Operation and Maintenance for a period of 20 years as a PFI project  Sell electricity generated from biogas and sell residue as fuel f

  36. Slide 36: JFE Shoji: Financial Forecasts for Fiscal Year 2017

    ＪＦＥ Shoji Financial Forecasts for Fiscal Year 2017 36 36

  37. Slide 37: Financial Forecasts for FY2017 of JFE Shoji

    JFE Shoji Financial Forecasts for FY2017 of JFE Shoji （billion yen） FY2017 FY2017 Change (Previous forecast) (Updated forecast) Full Full Full 1H(F) 1H (A) 1H year year year Net Sales 905.0 916.2 1,830.0 11.2 Ordinary Income 15.0 28.0 16.2 29.0 1.2 1.0 【Ordinary Income Change(1H)】 ・Increase mainly w

  38. Slide 38: Financial Forecasts for FY2017 of JFE Shoji

    JFE Shoji Financial Forecasts for FY2017 of JFE Shoji （billion yen） FY2016 (A) FY2017 (F) Change Full Full 1H 1H (A) 1H Full year year year Net Sales 775.8 1,671.0 916.2 1,830.0 140.4 159.0 Ordinary 7.6 21.8 16.2 29.0 8.6 7.2 Income 【Ordinary Income Change (Full year) 】 ・Increase with improvement in

  39. Slide 39: Net Sales of JFE Shoji (by Segment)

    JFE Shoji Net Sales of JFE Shoji (by Segment) （billion yen） FY2016 (A) FY2017 (F) Change Domestic Business 880.5 978.0 97.5 Export 383.4 456.0 72.6 Overseas 638.3 703.0 64.7 Business Foreign 254.9 247.0 （7.9） Operation Raw Materials, Equipment etc. 152.2 149.0 （3.2） TOTAL 1,671.0 1,830.0 159.0 39

  40. Slide 40: JFE Holdings: Financial Forecasts for Fiscal Year 2017

    ＪＦＥ Holdings Financial Forecasts for Fiscal Year 2017 40 40

  41. Slide 41: Financial Forecasts for Fiscal Year 2017

    JFE-HD Financial Forecasts for Fiscal Year 2017 (billion yen) FY2016 (A) FY2017 (F) Change 1H Full year 1H (A) Full year 1H Full year Net Sales 1,499.5 3,308.9 1,725.3 3,650.0 225.8 341.1 Operating Income 4.0 96.7 96.5 210.0 92.5 113.3 Non-operating Income (14.1) (12.0) 4.9 (10.0) 19.0 2.0 (Expenses

  42. Slide 42: Underlying Profit before One-off Effects

    JFE-HD Underlying Profit before One-off Effects （billion yen） FY15 FY16 FY17 1H Actual Actual Forecast Actual Net Sales 3,431.7 3,308.9 1,725.3 3,650.0 Ordinary Income 64.2 84.7 101.4 200.0 ROS(*) 1.9% 2.6% 5.9% 5.5% One-off Effects (78.0) 28.0 9.0 3.0 Underlying Profit 142.2 56.7 92.4 197.0 before

  43. Slide 43: Trend of Main Indices ①

    JFE-HD Trend of Main Indices ① (Comparison with the Target of Fifth Medium-Term Business Plan) JFE Holdings JFE Steel 【ROE】 【ROS】 10.0% 10.0% More Than 10% 10% 5.5% 7.9% 5.0% 5.0% 1.7% 1.1% 3.7% 1.8% 0.0% 0.0% FY17 15年度 16年度 17年度 FY17 5次中期 FY17 15年度 FY15 16年度 FY16 FY17 17年度 5次中期 FY15 FY16 (見通し) 経営計画

  44. Slide 44: Trend of Main Indices ②

    JFE-HD Trend of Main Indices ② (Comparison with the Target of Fifth Medium-Term Business Plan) D/E Ratio Debt / EBITDA Ratio (right axis) (right axis) (billion yen) (billion yen) 1,500 60% 60% 800 (times) 6.0 5.4 56.9% 4.9 Approx. 50％ 50% 50% 51.4% 48.5% 3.6 1,400 40% 400 373 3.0 1,379 1,375 280 254

  45. Slide 45: Cash Flow Forecasts of FY2017

    JFE-HD Cash Flow Forecasts of FY2017 (billion yen) Source Usage Net Income Dividends 150 35 Working Capital etc. 40 Capex, Investments 280 Depreciation 160 Asset Sales 70 Repayment of Debt 25 380 380 45

  46. Slide 46: Dividends

    JFE Dividends 46

  47. Slide 47: Dividends

    JFE-HD Dividends  JFE Holdings’ board of directors has decided to pay an interim dividend of 30 yen per share.  The company is withholding its decision regarding the year-end dividend to carefully observe performance going forward. 47

  48. Slide 48: Appendix

    Appendix 48 48

  49. Slide 49: Main Financial Data

    JFE-HD Main Financial Data (Forecast) FY03 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 (bn. Yen) Ordinary Income 218.3 502.9 400.5 69.2 165.8 52.9 52.2 173.6 231.0 64.2 84.7 200.0 EBITDA ※1 432.3 741.4 670.8 337.1 428.9 306.3 260.6 368.9 421.5 254.4 279.9 373.0 ROS ※2 8.8％ 14.2％ 10.2％ 2.4

  50. Slide 50: Domestic Market Environment: Price Trend of Import Steel

    JFE Steel Domestic Market Environment Price Trend of Import Steel (000 yen/ton) 70 65 60 55 50 45 40 Jul Jul Jul Jun Jun Jun Jun Jun Jul Jul Feb Feb Feb Feb Feb Apr Apr Apr Apr Apr Aug Aug Oct Oct Aug Oct Aug Oct Aug Mar Mar May Mar May Mar Mar May May May Nov Nov Dec Nov Dec Nov Dec Dec Jan Jan Jan

  51. Slide 51: Overseas Market Environment: Auto Sales in Key Countries

    JFE Steel Overseas Market Environment Auto Sales in Key Countries Automobile Sales in Key Countries (YoY Change) 60% S. Korea China Indonesia Thailand India 40% 20% 0% -20% -40% -60% Jan Sep Jan Sep Jan Jan Sep Sep Jan Jul Jul Jul Jul Jul Oct Oct Oct Jun Oct Jun Jun Jun Apr Apr Apr Apr Apr Jun Aug A

  52. Slide 52: Exports from China by Products

    2,000 4,000 6,000 8,000 10,000 12,000 0 (000t) Jan Feb Mar Apr May Jun 2013 Jul Aug Sep CGL HRC CRC Oct Nov Dec Jan HRC (Alloy) Rod&Wire etc. Feb Overseas Mar Apr May Jun Market Environment 2014 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2015 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2016

  53. Slide 53: Raw Materials Trend of Metals' Market Price

    100.0 140.0 160.0 180.0 120.0 60.0 80.0 1,000 1,200 1,400 1,600 400 600 800 2013.1 2013.1 （￠/lb） FeCr 2013.7 （U$/t） FeMn 2013.7 2014.1 2014.1 2014.7 2014.7 2015.1 2015.1 2015.7 2015.7 2016.1 2016.1 2016.7 2016.7 2017.1 2017.1 2017.7 2017.7 1,800 2,300 2,800 3,300 3,800 1,300 800 10.00 12.00 14.00 16

  54. Slide 54: Raw Materials Trend of Market Price

    10,000 25,000 40,000 15,000 20,000 30,000 35,000 45,000 20,000 40,000 60,000 80,000 0 100,000 120,000 2010.4 2010.4 2010.10 2010.10 2011.4 2011.4 (yen/t） Scrap 2011.10 2011.10 (yen/t）LNG Price 2012.4 2012.4 2012.10 2012.10 2013.4 2013.4 2013.10 2013.10 2014.4 2014.4 2014.10 2014.10 2015.4 2015.4 201

  55. Slide 55: Cost Reductions (Steel Business)

    JFE Steel Cost Reductions (Steel Business) (billion yen) 140 120 100 80 60 120 120 (forecast) 92 40 80 70 56 50 50 20 41 40 45 33 30 35 30 - 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 JFE Steel (non-consolidated basis) 55

  56. Slide 56: Trend of exchange rate (against USD, KRW)

    Trend of exchange rate（against USD,KRW） JPY/USD JPY/KRW 130 0.14 0.13 120 JPY/USD 0.12 (left axis) 110 0.11 100 0.10 JPY/KRW (right axis) 0.09 90 0.08 80 0.07 70 0.06 May-14 Oct-13 Oct-16 Mar-16 Mar-12 Dec-15 Dec-11 Jan-15 Jan-11 Sep-14 Jul-16 Sep-17 Jul-12 Aug-15 Aug-11 Jun-13 Jun-17 Apr-15 Apr-11

  57. Slide 57: 12.6 Billion Yen decrease in JFE Steel's Ordinary Income

    JFE Steel 12.6 Billion Yen decrease in JFE Steel’s Ordinary Income (FY17 1Q (Actual) vs. FY17 2Q (Actual)) (billion yen) FY2017 Change JFE Steel 1Q 2Q 1H 1Q → 2Q Ordinary 48.6 36.0 84.6 (12.6) Income  Cost reductions ± 0.0  Volume and Mix － 3.0  Sales and Raw materials ＋ 20.0 ・Increase in depreci

  58. Slide 58: 109.0 Billion Yen Increase in JFE Steel's Ordinary Income

    JFE Steel 109.0 Billion Yen Increase in JFE Steel’s Ordinary Income (FY16 1H (Actual) vs. FY17 1H (Actual)) (billion yen) FY2016 FY2017 Change JFE Steel 1H 2H 1H 1H → 1H Ordinary Income (24.4) 64.9 40.5 84.6 109.0  Cost reductions ＋ 20.0  Volume and Mix ＋ 7.0  Sales and Raw materials ＋ 15.0  Inv

  59. Slide 59: Progress of Fifth Medium-Term Business Plan

    Progress of Fifth Medium-Term Business Plan 59 59

  60. Slide 60: Progress of Strengthening Domestic Manufacturing Base

    JFE Steel Progress of Strengthening Domestic Manufacturing Base Domestic capital investments of 650 billion yen are in progress (adopted more than 70% planned by FY16) <Progress of main items> Fifth Medium-Term Process Area Facility FY14 FY15 FY16 FY17 FY18 FY19 Kura- No.3 Jan. 2016 Shiki Coke oven

  61. Slide 61: Progress of Cost Reduction

    JFE Steel Progress of Cost Reduction Achieve 110billion yen cost reduction for 3 years as planned (billion yen） Progress of Cost Reduction Main items of investment effects 120 Main investment effects of FY17 Renovation of coke ovens ・Kurashiki No.2 coke oven Improve self-sufficiency rate of coke us

  62. Slide 62: Progress of Overseas Business

    JFE Steel Progress of Overseas Business -Strengthen business in prioritized field especially in auto sector -Pursue growth investment from a middle- & long-term perspective Prioritized Asia Southwest NAFTA MENA Business Field China Southeast Asia Asia ・Held ground- Automobiles ・GJSS（CGL） breaking ce

  63. Slide 63: Copyright © 2017 JFE Holdings, Inc. All Rights Reserved

    Copyright © 2017 JFE Holdings, Inc. All Rights Reserved 63

JFE Holdings — H1 FY2017 Earnings Presentation on 6ix