Jfe Holdings, Inc. · TSE:5411

Jfe — H1 FY2016 Earnings Presentation

65 slides from Jfe's earnings presentation, October 2016

  1. Slide 1: JFE Group Financial Results in First Half of Fiscal Year 2016

    JFE Group Financial Results in First Half of Fiscal Year 2016 ending March 31, 2017 JFE Holdings, Inc. October, 2016

  2. Slide 2: A table of contents

    A table of contents  JFE Holdings’ Financial Results in First Half of Fiscal Year 2016 (April 1 to September 30, 2016) and Financial Forecasts for Fiscal Year 2016 (April 1, 2016 to March 31, 2017)  JFE Steel  JFE Engineering  JFE Shoji  Dividends This presentation material is for information a

  3. Slide 3: Consolidated Results in First Half of Fiscal 2016

    Consolidated Results in First Half of Fiscal 2016 (April 1 to September 30, 2016) 33

  4. Slide 4: Financial Results in First Half of Fiscal 2016

    JFE-HD Financial Results in First Half of Fiscal 2016 (billion yen) FY2015 FY2016 Change 1H (Apr-Sep) 1H (Apr-Sep) Net Sales 1,713.2 1,499.5 (213.7) Operating Income 49.4 4.0 (45.4) Non-operating Income (1.0) (14.1) (13.1) Ordinary Income (Loss) 48.3 (10.1) (58.4) Extraordinary Profit (Loss) - 3.5 3

  5. Slide 5: Financial Results in First Half of Fiscal 2016 (by Segment)

    JFE-HD Financial Results in First Half of Fiscal 2016 (by Segment) (billion yen) FY2015 FY2016 Change 1H (Apr-Sep) 1H (Apr-Sep) Steel Business 1,246.0 1,072.4 (173.6) Engineering Business 153.5 175.3 21.8 Trading Business 914.5 775.8 (138.7) Adjustments (601.0) (524.0) 77.0 Net Sales 1,713.2 1,499.5

  6. Slide 6: Financial Results in First Half of Fiscal 2016 (by Segment)

    JFE-HD Financial Results in First Half of Fiscal 2016 (by Segment) (billion yen) FY2016 1H (Apr-Sep) Previous Actual Change Forecasts Results Steel Business 1,100.0 1,072.4 (27.6) Engineering Business 180.0 175.3 (4.7) Trading Business 780.0 775.8 (4.2) Adjustments (530.0) (524.0) 6.0 Net Sales 1,53

  7. Slide 7: Forecasts of Consolidated Financial Results in Fiscal 2016

    Forecasts of Consolidated Financial Results in Fiscal 2016 (April 1, 2016 to March 31, 2017) 77

  8. Slide 8: Financial Forecasts and Current Business Activities

    Financial Forecasts and Current Business Activities Forecasts of Financial Results in Fiscal 2016 Revise down the consolidated forecast of financial results in Fiscal 2016 under the current business environment with a significant cost increase in steel business due to a hike in coking coal prices •

  9. Slide 9: Financial Forecasts for Fiscal 2016

    JFE-HD Financial Forecasts for Fiscal 2016 (billion yen) Previous Forecast Updated Forecast (Jul. 29, 2016) (Oct. 28, 2016) Change Change 1H Full year 1H (A) Full year 1H Full year Net Sales 1,530.0 1,499.5 3,290.0 (30.5) Operating Income (5.0) 4.0 50.0 9.0 Non-operating Income (15.0) (14.1) (20.0)

  10. Slide 10: Financial Forecasts for Fiscal 2016

    JFE-HD Financial Forecasts for Fiscal 2016 (billion yen) FY2015 (A) FY2016 (F) Change Change 1H Full year 1H (A) Full year 1H Full year Net Sales 1,713.2 3,431.7 1,499.5 3,290.0 (213.7) (141.7) Operating Income 49.4 90.6 4.0 50.0 (45.4) (40.6) Non-operating Income (1.0) (26.3) (14.1) (20.0) (13.1) 6

  11. Slide 11: Financial Forecasts for Fiscal 2016 (by Segment)

    JFE-HD Financial Forecasts for Fiscal 2016 (by Segment) (billion yen) FY2015 (A) FY2016 (F) Change Change 1H Full year 1H (A) Full year 1H Full year Steel Business 1,246.0 2,445.1 1,072.4 2,270.0 (173.6) (175.1) Engineering Business 153.5 397.5 175.3 450.0 21.8 52.5 Trading Business 914.5 1,756.4 77

  12. Slide 12: JFE Steel Financial Results in First Half of Fiscal Year 2016

    ＪＦＥ Steel Financial Results in First Half of Fiscal Year 2016 12 12

  13. Slide 13: Production and Shipment

    JFE Steel Production and Shipment (million tons) ■Crude Steel Production and Shipment (non-consolidated basis) FY2015 FY2015 FY2016 Change 1H Full year 1H (A) A B B-A Crude Steel 13.45 27.36 14.00 0.55 Shipment 12.37 25.39 12.60 0.23 ■Crude Steel Production (consolidated basis) Crude Steel 14.69 29.

  14. Slide 14: 13.6 Billion Yen decrease in JFE Steel's Ordinary Income

    JFE Steel 13.6 Billion Yen decrease in JFE Steel’s Ordinary Income (FY15 2H vs. FY16 1H) (billion yen) FY15 2H FY16 1H Change JFE Steel Actual Actual 2H → 1H Ordinary (10.8) (24.4) (13.6) Income  Cost reduction ＋ 7.0  Volume and Product mix 0.0  Sales and Raw materials － 7.0  Inventory valuation

  15. Slide 15: 8.6 Billion Yen increase in JFE Steel's Ordinary Income

    JFE Steel 8.6 Billion Yen increase in JFE Steel’s Ordinary Income (FY16 1H (Forecast) vs. FY16 1H (Actual)) (billion yen) FY16 1H FY16 1H Change JFE Steel Forecast Actual 1H (F) → (A) Ordinary (33.0) (24.4) 8.6 Income  Sales and Raw materials ＋ 3.0  Inventory valuation － 2.0  Others ＋ 7.6 TOTAL ＋

  16. Slide 16: JFE Steel Financial Forecasts for Fiscal Year 2016

    ＪＦＥ Steel Financial Forecasts for Fiscal Year 2016 16 16

  17. Slide 17: Current Business Environment

    Current Business Environment Domestic Business Environment Domestic steel demand in FY16 remains at a standstill but is forecast to increase from FY15. In the 2nd half of FY16, domestic steel demand is forecast to begin recovering slowly mainly in the automobile and construction sectors. Oversea

  18. Slide 18: Outlook for Domestic Auto Production

    JFE Steel Domestic Outlook for Domestic Auto Production Market Environment （million (millionunits） units) 3.5 FY12(9.55M units） FY13(9.91M units） FY14(9.59M units） FY15(9.19M units） 3.0 FY16(E)(9.3M units） 2.7 2.5 2.4 2.5 2.4 2.5 2.5 2.5 2.4 2.4 2.4 2.3 2.4 2.3 2.4 2.4 2.5 2.3 2.3 2.2 2.1 2.0 1.5 1.

  19. Slide 19: Domestic Combined Inventories of HR, CR and Coated Steel Sheet

    JFE Steel Domestic Combined Inventories of HR, Market Environment CR and Coated Steel Sheet （000t） Maker Whole Saler （Month） 5,000 Coil Center Inventory Ratio (Right) 4 4,500 4,000 3 3,500 3,000 2,500 2 2,000 1,500 1 1,000 Aug, 2016 500 4,055kt 0 0 Apr Aug Apr Aug Apr Aug Apr Aug Apr Aug Oct Oct Oct

  20. Slide 20: Domestic 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） Inventories Shipment Inventory Ratio (Right) （Month） (000t) (Month) 450 Inventories Inventory Ratio 3.0 250 4.0 3.5 2.5 400 200

  21. Slide 21: Trend of Import Steel

    200 400 600 100 300 500 0 Jan Feb Mar （000t） Apr May Jun Jul 2012 Aug Sep Oct Nov Dec Jan Feb Mar Domestic Apr May Jun Jul 2013 Market Environment Aug S. Korea Sep Oct Nov Dec Jan Feb China Mar Apr May Jun Jul 2014 Taiwan Aug Sep Oct Nov Dec (Ordinary Steel) Jan Others Feb Mar Apr May Jun Trend of I

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

    JFE Steel Overseas Market Environment Crude Steel & Im/Export, China Mt Export Import 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 Jul Jul Jul Jul Jul Jun Jun Jun Jun Jun Feb Feb Feb Feb Feb Apr Apr Apr Apr Apr Aug Aug A

  23. Slide 23: Daily average crude steel production in China

    JFE Steel Overseas Daily average crude steel Market Environment production in China (Mt/day） 250 Daily average production： left axis 112.01 95.59 110% 207.60 200 105% 150 100% 100 95% YoY % changes： right axis 50 90% 0 85% ※Daily Average Production ＝ Monthly Production / Dates 23

  24. Slide 24: Metal Spread Trend (Chinese Spot Basis)

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

  25. Slide 25: Raw Materials Price

    JFE Steel Raw Materials Raw Materials Price （$/t） 330 350 315 300 285 Hard Coking Coal 300 Iron Ore (Fe62%) 250 225 225 200 209 210 200 200 225 235 165172 145152143 150 125116 120120119117110 171169167 170 93 147 137 93 89 144 136 137126 81 84 100 129120 127 130 117 118122118 46 55 98 90 103 99 50 8

  26. Slide 26: Production and Shipment Forecasts

    JFE Steel Production and Shipment Forecasts (million tons) ■Crude Steel Production and Shipment (non-consolidated basis) FY2015 FY2016 1Q 2Q 1H (Actual) (Actual) (Actual) (Actual) Full Crude Steel 27.36 6.94 7.06 14.00 year 28.00 Shipment 25.39 6.26 6.34 12.60 ASP (000yen/t) 66.8 58.5 58.6 58.6 Exch

  27. Slide 27: Financial Forecasts for FY2016 of JFE Steel

    JFE Steel Financial Forecasts for FY2016 of JFE Steel (billion yen) FY2015 FY2016 Change 2015 JFE Steel 1H 2H 1H 2H → (A) (A) (A) (F) (F) (F) 2016 Net Sales 1,246.0 1,199.1 2,445.1 1,072.4 1,197.6 2,270.0 (175.1) Ordinary 38.6 (10.8) 27.8 (24.4) 9.4 (15.0) (42.8) Income ROS(*) 3.1% -0.9% 1.1% -2.3%

  28. Slide 28: 33.8 Billion Yen increase in JFE Steel's Ordinary Income

    JFE Steel 33.8 Billion Yen increase in JFE Steel’s Ordinary Income (FY16 1H (Actual) vs. FY16 2H (Forecast)) (billion yen) FY2016 (Forecast) Change JFE Steel 1H 2H Full year 1H→2H Ordinary (24.4) 9.4 (15.0) ＋ 33.8 Income  Cost reduction ＋ 7.0  Volume and Product mix ＋ 4.0  Sales and Raw materials

  29. Slide 29: 42.8 Billion Yen decrease in JFE Steel's Ordinary Income

    JFE Steel 42.8 Billion Yen decrease in JFE Steel’s Ordinary Income (FY15 (Actual) vs. FY16 (Forecast)) (billion yen) FY15 FY16 Change JFE Steel Actual Forecast FY15→16 Ordinary 27.8 (15.0) (42.8) Income  Cost reduction ＋ 30.0  Volume and Product mix － 5.0 Product mix etc.  Sales and Raw materials

  30. Slide 30: 35.0 Billion Yen decrease in JFE Steel's Ordinary Income

    JFE Steel 35.0 Billion Yen decrease in JFE Steel’s Ordinary Income (FY16 (Previous Forecast) vs. FY16 (Updated Forecast)) (billion yen) FY16 FY16 Change JFE Steel Previous Updated FY16 → 16 Ordinary 20.0 (15.0) (35.0) Income Sales and Raw materials － 45.0 Inventory valuation ＋ 22.0 Decrease in pro

  31. Slide 31: Progress of Fifth Medium-Term Plan (Domestic)

    JFE Steel Progress of Fifth Medium-Term Plan (Domestic) Further strengthen the manufacturing base in Japan with stable production and reduce costs additionally by continuous capital investments Accelerating Capex plan 【Capital investments】 650billion yen (adopted 40% planned investments in FY15) <Pr

  32. Slide 32: Progress of Fifth Medium-Term Plan (Overseas)

    JFE Steel Progress of Fifth Medium-Term Plan (Overseas) -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 East Asia Southeast Asia Asia Expanding production To star

  33. Slide 33: JFE Engineering Financial Forecasts for Fiscal Year 2016

    ＪＦＥ Engineering Financial Forecasts for Fiscal Year 2016 33 33

  34. Slide 34: Financial Forecasts for FY2016 of JFE Engineering

    JFE Engineering Financial Forecasts for FY2016 of JFE Engineering (billion yen） FY2016 (previous) FY2016 (updated) Change Change 1H Full year 1H(A) Full year 1H Full year Orders 220.0 186.9 500.0 (33.1) Net Sales 180.0 175.3 450.0 (4.7) Ordinary Income 5.5 25.0 7.6 27.0 +2.1 +2.0 【Change】 (FY2016 1H

  35. Slide 35: Financial Forecasts for FY2016 of JFE Engineering

    JFE Engineering Financial Forecasts for FY2016 of JFE Engineering (billion yen） FY2015(A) FY2016 (F) Change Change 1H Full year 1H(A) Full year 1H Full year Orders 197.2 509.4 186.9 500.0 (10.3) (9.4) Net Sales 153.5 397.5 175.3 450.0 +21.8 +52.5 Ordinary Income (0.0) 20.0 7.6 27.0 +7.6 +7.0 【Change

  36. Slide 36: Classification of placed orders

    JFE Engineering Classification of placed orders （billion yen） FY2015 FY2016 Category Change Main Orders (FY2016 1H) (Actual) (Estimate) - Improvement works of waste incineration in Maebashi City, Ikeda City, Naha City and Yonago City. - Sewage digestion gas power generation equipment Environment, En

  37. Slide 37: Trend of Orders and Ordinary Income

    JFE Engineering Trend of Orders and Ordinary Income [Orders (billion Yen)] [Ordinary Income (billion Yen)] 600 30 500.0 509.4 27.0 500 25 459.5 20.0 400 367.0 20 18.0 Ordinary Income 16.4 （Right Axis） 18.4 300 269.8 15 Steel Structure, Industrial Machinery etc. 200 10 100 5 Environment, Energy 0 0 F

  38. Slide 38: Receiving Order of the largest class for Biomass Power Plant in Japan

    Receiving Order of the largest class for Biomass JFE Engineering Power Plant in Japan by Cooperation Agreement with Valmet （announced on October 7, 2016） Biomass Power Plant Share Taking the EPC (Engineering, Procurement and Construction) order of （JFE Engineering research） 75MWe biomass power plant

  39. Slide 39: JFE Shoji Financial Forecasts for Fiscal Year 2016

    ＪＦＥ Shoji Financial Forecasts for Fiscal Year 2016 39 39

  40. Slide 40: Financial Forecasts for FY2016 of JFE Shoji

    JFE Shoji Financial Forecasts for FY2016 of JFE Shoji （billion yen） FY2016 FY2016 Change Change (Previous forecast) (Updated forecast) Full Full Full 1H 1H (A) 1H year year year Net Sales 780.0 775.8 1,670.0 (4.2) Ordinary Income 7.5 20.0 7.6 20.0 +0.1 0 40

  41. Slide 41: Financial Forecasts for FY2016 of JFE Shoji

    JFE Shoji Financial Forecasts for FY2016 of JFE Shoji （billion yen） FY2016 (A) FY2016 (F) Change 1H Full year 1H (A) Full year Full year Net Sales 914.5 1,756.4 775.8 1,670.0 (86.4) Ordinary Income 9.8 15.7 7.6 20.0 +4.3 【Ordinary Income Change: FY2015 to FY2016 】 ・Increase of domestic sales volume

  42. Slide 42: Net Sales of JFE Shoji (by Segment)

    JFE Shoji Net Sales of JFE Shoji (by Segment) (billion yen) FY2015 (A) FY2016 (F) Change Domestic Business 905.3 961.3 +56.0 Export 417.7 366.2 (51.5) Overseas 689.0 591.2 (97.8) Business Foreign 271.3 225.0 (46.3) Operation Raw Materials, Equipment etc. 162.1 117.5 (44.6) TOTAL 1,756.4 1,670.0 (86.

  43. Slide 43: Investment in P.T. Mega Pratama Ferindo in Indonesia

    JFE Shoji Investment in P.T. Mega Pratama Ferindo in Indonesia （announced on August 24th, 2016） JFE Shoji has invested in P.T.Mega Pratama Ferindo (hereinafter called MPF) through acquiring shares of MPF. The aim of the investment Example : Use for Automotive Fastener ・ Enhancement of production cap

  44. Slide 44: JFE Holdings Financial Forecasts for Fiscal Year 2016

    ＪＦＥ Holdings Financial Forecasts for Fiscal Year 2016 44 44

  45. Slide 45: Financial Forecasts for Fiscal 2016

    JFE-HD Financial Forecasts for Fiscal 2016 (billion yen) FY2015 (A) FY2016 (F) Change Change 1H Full year 1H (A) Full year 1H Full year Net Sales 1,713.2 3,431.7 1,499.5 3,290.0 (213.7) (141.7) Operating Income 49.4 90.6 4.0 50.0 (45.4) (40.6) Non-operating Income (1.0) (26.3) (14.1) (20.0) (13.1) 6

  46. Slide 46: Underlying Profit before One-off Effects

    JFE-HD Underlying Profit before One-off Effects FY2015 1H 2H FY2016 Actual Actual Forecast Forecast Net Sales 3,431.7 1,499.5 1,790.5 3,290.0 Ordinary Income 64.2 (10.1) 40.1 30.0 ROS (*) 1.9% (0.7%) 2.2% 0.9% One-off Effects (78.0) (48.0) 24.0 (24.0) Underlying Profit 140 38 16 54 before One-off Ef

  47. Slide 47: Cash Flow Estimate of FY2016

    JFE-HD Cash Flow Estimate of FY2016 (billion yen) For further strengthening the Source Usage manufacturing base and Net Income Dividends etc. investment business overseas with financial soundness, JFE will sell 15 10 assets of 100 billion yen including Capex, sale of investment securities by the Inv

  48. Slide 48: Dividends

    JFE Dividends 48

  49. Slide 49: Dividends

    JFE-HD Dividends  JFE Holdings, Inc. has decided to forgo an interim dividend in response to current income and profit.  A decision about the year-end dividend will be reached once actual performance becomes clearer. 49

  50. Slide 50: Appendix

    Appendix 50 50

  51. Slide 51: Main Financial Data

    JFE-HD Main Financial Data (Forecast) FY03 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Ordinary Income (Bn. 218.3 502.9 400.5 69.2 165.8 52.9 52.2 173.6 231.0 64.2 30.0 Yen) ROS ※1 8.8% 14.2% 10.2% 2.4% 5.2% 1.7% 1.6% 4.7% 6.0% 1.9% 0.9% ROE ※2 15.9% 17.5% 13.7% 3.3% 4.1% (2.6%) 2.7% 6.3% 7.7%

  52. Slide 52: 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 July Jun Jun Jun Jul Jul Jul June August Feb Feb Feb Feb Apr Apr Apr Apr Aug Oct Aug Oct Aug Oct Mar Mar Mar Mar May May May May Nov Nov Nov Dec Dec Dec Jan Jan Jan Jan Sep Sep Sep 2013 2014 2015 201

  53. Slide 53: Automobile 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% Se p Se p Se p Jan Jan Jan Jan Jul Jul Jul Jul Oct Oct Apr Apr Apr Apr Oct Jun Jun Jun Jun Feb Feb Feb Feb Mar Aug Ma

  54. Slide 54: Exports from China by Products

    10,000 12,000 4,000 2,000 6,000 8,000 0 Jan 000t Feb Mar Apr May Jun Jul 2011 Aug Sep Oct Nov CGL HRC CRC Dec Jan Feb Mar Apr HRC (Alloy) Rod&Wire etc. May Overseas Jun Jul 2012 Aug Sep Oct Market Environment Nov Dec Jan Feb Mar Apr May Jun Jul 2013 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 20

  55. Slide 55: 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 Feb Apr Apr Apr Apr Apr Apr Aug Aug Aug Aug Aug Aug Jan J

  56. Slide 56: Crude Steel Production in China by Steel Mills

    JFE Steel Overseas Crude Steel Production in China Market Environment by Steel Mills 80,000 000t 140% YoY % changes （Top10+Other major mills）[Right axis] YoY % changes (Minor mills)[Right axis] 70,000 130% 60,000 Minor steel mills 120% 50,000 110% 40,000 100% 30,000 Other major steel mills 90% 20,00

  57. Slide 57: Trend of Scrap Price

    10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 0 2005/4/1 (yen/ton) 2005/1… 2006/4/1 2006/1… 2007/4/1 2007/1… 2008/4/1 2008/1… 2009/4/1 2009/1… 2010/4/1 2010/1… 2011/4/1 2011/1… 2012/4/1 2012/1… 2013/4/1 2013/1… Raw Materials Trend of Scrap Price 2014/4/1 2014/1… 2015/4/1 2015/1… 2016/4/1 J

  58. Slide 58: Trend of Spot Bulker Price

    50,000 0 100,000 200,000 300,000 150,000 250,000 2005/4/1 2005/10/1 ($/day) 2006/4/1 2006/10/1 2007/4/1 2007/10/1 2008/4/1 2008/10/1 2009/4/1 2009/10/1 2010/4/1 2010/10/1 2011/4/1 2011/10/1 2012/4/1 2012/10/1 2013/4/1 2013/10/1 2014/4/1 2014/10/1 2015/4/1 2015/10/1 Raw Materials Trend of Spot Bulker

  59. Slide 59: Trend of LNG Price

    (yen/ton) 20,000 40,000 60,000 80,000 100,000 120,000 0 2005/4/1 2005/10/1 2006/4/1 2006/10/1 2007/4/1 2007/10/1 2008/4/1 2008/10/1 2009/4/1 2009/10/1 2010/4/1 2010/10/1 2011/4/1 2011/10/1 2012/4/1 2012/10/1 2013/4/1 2013/10/1 Raw Materials Trend of LNG Price 2014/4/1 2014/10/1 2015/4/1 2015/10/1 20

  60. Slide 60: Trend of Oil Price

    40 80 20 60 0 120 160 100 140 2005-Apr Jul Oct 2006-… (crude oil: $/bbl) Apr Jul WTI Oct DUBAI 2007-… Apr Jul Oct 2008-… Bunker (JAPAN 380CST) Apr Jul Oct 2009-… Apr Jul Oct 2010-… Apr Jul Oct 2011-… Apr Jul Oct 2012-… Apr Jul Oct 2013-… Apr Jul Oct 2014-… Raw Materials Trend of Oil Price Apr Jul Oc

  61. Slide 61: 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 Oct-13 May-14 Mar-16 Mar-12 Dec-11 Dec-15 Jan-11 Jan-15 Aug-11 Jul-16 Jul-12 Aug-15 Sep-14 Apr-11 Apr-15 Feb-13 Jun-13 Feb-14 Nov-12

  62. Slide 62: Cost Reduction (Steel Business)

    JFE Steel Cost Reduction (Steel Business) (billion yen) 140 120 100 80 60 120 120 (forecast) 40 92 80 70 56 50 50 20 41 33 30 40 35 30 - 03 04 05 06 07 08 09 10 11 12 13 14 15 16 JFE Steel (non-consolidated basis) 62

  63. Slide 63: 16.2 Billion Yen increase in JFE Steel's Ordinary Income

    JFE Steel 16.2 Billion Yen increase in JFE Steel’s Ordinary Income (FY16 1Q (Actual) vs. FY16 2Q (Actual)) (billion yen) FY2016 Change JFE Steel 1Q 2Q 1H 1Q → 2Q Ordinary (20.3) (4.1) (24.4) 16.2 Income  Cost reduction ＋ 1.0  Volume and Product mix 0.0  Sales and Raw materials － 1.0  Inventory v

  64. Slide 64: 63.0 Billion Yen decrease in JFE Steel's Ordinary Income

    JFE Steel 63.0 Billion Yen decrease in JFE Steel’s Ordinary Income (FY15 1H (Actual) vs. FY16 1H (Actual)) (billion yen) FY2015 FY2016 Change JFE Steel 1H 2H 1H 1H → 1H Ordinary Income 38.6 (10.8) 27.8 (24.4) (63.0)  Cost reduction ＋ 13.0  Volume and Product mix 0.0  Sales and Raw materials － 47.

  65. Slide 65: Copyright © 2016 JFE Holdings, Inc.

    Copyright © 2016 JFE Holdings, Inc. All Rights Reserved 65

JFE Holdings — H1 FY2016 Earnings Presentation on 6ix