Jfe Holdings, Inc. · TSE:5411

Jfe — Q3 FY2024 Earnings Presentation

55 slides from Jfe's earnings presentation, Feb 6, 2025

  1. Slide 1: Financial Results for Third Quarter of Fiscal Year 2024

    Securities Code：5411.T JFE Group Financial Results for Third Quarter of Fiscal Year 2024 ending March 31, 2025 JFE Holdings, Inc. February 6, 2025 Copyright © 2025 JFE Holdings, Inc. All Rights Reserved. 1

  2. Slide 2: Table of Contents

    Table of Contents  Financial Highlights  JFE Holdings’ Financial Results for Third Quarter of Fiscal Year 2024 (April 1 to December 31, 2024) and Financial Forecast for Fiscal Year 2024 (April 1, 2024, to March 31, 2025)  Dividends  Financial Forecast for Fiscal Year 2024 by Segment  Outlook fo

  3. Slide 3: Financial Highlights

    JFE-HD Financial Highlights  Expect profit attributable to owners of parent of ¥95bn. due to factors such as the impact of manufacturing troubles, deteriorating earnings at overseas group companies, inclusion of overseas impairment losses, and losses on inventory valuation etc. (decreased by ¥102.4

  4. Slide 4: Consolidated Results for Third Quarter of Fiscal Year 2024

    Consolidated Results for Third Quarter of Fiscal Year 2024 (April 1 to December 31, 2024) Copyright © 2025 JFE Holdings, Inc. All Rights Reserved. 4

  5. Slide 5: Financial Results for Third Quarter of Fiscal Year 2024

    JFE-HD Financial Results for Third Quarter of Fiscal Year 2024  Business profit in Apr-Dec of FY2024 was ¥120.7bn. (decreased by ¥39.2bn. year-on-year) ＊Excluding inventory valuation, decreased by ¥39.2bn. year-on-year. FY2023 Actual FY2024 Actual Change （billion yen） Oct-Dec Apr-Dec Oct-Dec Apr-De

  6. Slide 6: Financial Results for Third Quarter of Fiscal Year 2024 (by Segment)

    JFE-HD Financial Results for Third Quarter of Fiscal Year 2024 (by Segment) FY2023 Actual FY2024 Actual Change （billion yen） Oct-Dec Apr-Dec Oct-Dec Apr-Dec Apr-Dec Steel Business 915.6 2,781.4 828.9 2,558.2 (223.2) Engineering Business 136.3 384.8 152.4 421.9 37.1 Trading Business 368.1 1,110.2 366

  7. Slide 7: ¥126.1bn. Decrease in JFE Steel's Segment Profit

    JFE Steel ¥126.1bn. Decrease in JFE Steel’s Segment Profit (FY2023 Apr-Dec (Actual) vs. FY2024 Apr-Dec (Actual)) FY2023 FY2024 （billion yen） Unit Apr-Dec Apr-Dec FY2023 FY2024 Crude Steel 16.56 JFE Steel Change (Standalone) Mt 17.78 Apr-Dec Apr-Dec Shipment Mt 15.73 14.53 Segment (Standalone) Profit

  8. Slide 8: Financial Forecasts for Fiscal Year 2024

    Financial Forecasts for Fiscal Year 2024 (April 1, 2024, to March 31, 2025) Copyright © 2025 JFE Holdings, Inc. All Rights Reserved. 8

  9. Slide 9: Financial Forecast for Fiscal Year 2024

    JFE-HD Financial Forecast for Fiscal Year 2024  Full-year business profit is expected to be ¥115.0bn. (decreased by ¥45.0bn. from previous forecast, decreased by ¥183.2bn. year-on-year)  Full-year profit attributable to owners of parent is expected to be ¥95.0bn. (decreased by ¥35.0bn. from previo

  10. Slide 10: Financial Forecast for Fiscal Year 2024 (by Segment)

    JFE-HD Financial Forecast for Fiscal Year 2024 (by Segment) FY2024 Change Change FY2023 FY2024 FY2023→ Forecast Previous Actual (Previous) Forecast(Updated) FY2024 →Updated （billion yen） （Updated） 1H Actual 2H Forecast Full Year Full Year Full Year Full Year Full Year (Apr-Sep) (Oct-Mar) Steel Busin

  11. Slide 11: Dividends

    Dividends Copyright © 2025 JFE Holdings, Inc. All Rights Reserved. 11

  12. Slide 12: Dividends

    JFE-HD Dividends  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) Pay-out Ratio 160 31.9% 33.5% N/A N/A 28.0% 28.5% 30.9% 66.9% 140 Interim dividend 120 Annual

  13. Slide 13: JFE Steel Financial Forecast for Fiscal Year 2024

    JFE Steel Financial Forecast for Fiscal Year 2024 Copyright © 2025 JFE Holdings, Inc. All Rights Reserved. 13

  14. Slide 14: Business Environment (Domestic)

    JFE Steel Business Environment（Domestic）  While the automotive and shipbuilding sectors seem to continue driving demand in manufacturing, significant growth towards FY2025 is not expected.  In the construction sector, despite ongoing stagnation due to rising construction costs and labor shortages,

  15. Slide 15: Business Environment (Overseas)

    JFE Steel Business Environment（Overseas）  Oversupply and increased exports from China, where domestic demand is sluggish, continue to cause slack in the supply and demand of steel products and market stagnation.  Attention is also needed on risks such as geopolitical issues and the protectionist t

  16. Slide 16: Crude Steel Production

    JFE Steel Crude Steel Production  Due to manufacturing troubles, we expect approx. 22.00Mt for the full year, which is 0.4Mt less than the previous announcement.  The troubles are temporary, and we have already identified the causes and are implementing permanent solutions. Standalone crude steel

  17. Slide 17: Raw materials market trends

    JFE Steel Raw materials market trends  Key Raw materials • Iron Ore：Steel demand in China, the largest Iron Ore importer, remains sluggish and the environment is uncertain due to Chinese government policies, and prices are assumed to stay at the current levels for now. • Coking coal：A significant r

  18. Slide 18: Improving of sales price

    JFE Steel Improving of sales price  In sluggish overseas market conditions and rising various costs, we will continue to push forward with passing on various costs, reviewing extras, and correcting price levels, and we expect to maintain spreads, including various costs*1, at FY2023 levels. *1 Spre

  19. Slide 19: Financial Forecast for Fiscal Year 2024

    JFE Steel Financial Forecast for Fiscal Year 2024 FY2023 FY2024 FY2024 Unit Previous Forecast 1H 3Q 4Q 2H Full Year 1H 3Q 4Q 2H Full Year billion Revenue 1,865.8 915.6 934.6 1,850.2 3,716.0 1,729.3 828.9 821.8 1,650.7 3,380.0 3,460.0 yen Segment billion 122.8 48.2 31.7 79.8 202.7 34.5 10.4 (18.9) (8

  20. Slide 20: ¥44.0bn. Decrease in JFE Steel's Segment Profit

    JFE Steel ¥44.0bn. Decrease in JFE Steel’s Segment Profit (FY2024 (Previous Forecast) vs. FY2024(Updated Forecast))  Due to manufacturing troubles, deteriorating earnings of group companies, impairment losses of overseas group companies, and inventory valuation losses, the forecast has been revised

  21. Slide 21: ¥176.7bn. Decrease in JFE Steel's Segment Profit

    JFE Steel ¥176.7bn. Decrease in JFE Steel’s Segment Profit (FY2023 (Actual) vs. FY2024 (Forecast)) （billion yen） FY2023 FY2024 Change JFE Steel Actual Forecast Segment Profit 202.7 26.0 (176.7) Excluding Inventory Valuation etc. 200.7 122.0 (78.7) 1. Cost • Structural reforms effect＋25.0 ＋27.0 • Ope

  22. Slide 22: ¥43.0bn. Decrease in JFE Steel's Segment Profit

    JFE Steel ¥43.0bn. Decrease in JFE Steel’s Segment Profit (FY2024.1H vs. FY2024.2H) （billion yen） FY2024 Forecast Change JFE Steel 1H Actual 2H Forecast Full Year Segment Profit 34.5 (8.5) 26.0 (43.0) Excluding Inventory Valuation etc. 87.5 34.5 122.0 (53.0) 1. Cost ＋1.0 2. Volume and Mix ±0 • Crude

  23. Slide 23: JFE Engineering Financial Forecast for Fiscal Year 2024

    JFE Engineering Financial Forecast for Fiscal Year 2024 Copyright © 2025 JFE Holdings, Inc. All Rights Reserved. 23

  24. Slide 24: Financial Forecast for Fiscal Year 2024 (JFE Engineering)

    JFE Engineering Financial Forecast for Fiscal Year 2024  Current Business Environment/Overview of Financial Status  Expect to increase orders in the fields of “Waste to Resource” and “Core infrastructure”.  Full year segment profit is expected to be ¥20.0bn. (as previously announced)  Financial

  25. Slide 25: JFE Shoji Financial Forecast for Fiscal Year 2024

    JFE Shoji Financial Forecast for Fiscal Year 2024 Copyright © 2025 JFE Holdings, Inc. All Rights Reserved. 25

  26. Slide 26: Financial Forecast for Fiscal Year 2024 (JFE Shoji)

    JFE Shoji Financial Forecast for Fiscal Year 2024  Current Business Environment/Overview of Financial Status  Full year segment profit is expected to be ¥45.0bn. (as previously announced)  Financial Forecast FY2024 Forecast Change FY2024 Forecast FY2023 Actual (Updated) FY2023 (Previous) （billion

  27. Slide 27: Next Fiscal Year Onwards

    JFE-HD Next Fiscal Year Onwards  In addition to eliminating some of the factors that caused the decline in profit in the current fiscal year, we will strive to increase profits by making early contribution to profit from the growth investment implemented in the seventh mid-term business plan, conti

  28. Slide 28: Topics

    Topics Copyright © 2025 JFE Holdings, Inc. All Rights Reserved. 28

  29. Slide 29: Electric arc furnace in Kurashiki adopted as government support project

    JFE Steel An electric arc furnace to be introduced in Kurashiki has been adopted as an ironmaking process conversion support project for CN  Electric arc furnace to be installed in Kurashiki was selected as a governmental support project*. JFE plans to make an investment decision by the end of the

  30. Slide 30: Build hot-dip galvanizing line for ultra-high-strength steel sheets

    JFE Steel Build hot-dip galvanizing line (CGL) to increase production of ultra- high-strength steel sheets for automobiles Released on 10 th December 2024  Demand for ultra-high-strength steel sheets* is increasing in line with the growing demand for lighter and stronger automobiles.  Construction

  31. Slide 31: Acquire 66.6% Stake in Sumitomo Chemical Subsidiary

    JFE Engineering Acquire 66.6% Stake in Sumitomo Chemical Subsidiary Released on 3 rd February 2025  As for EPC1) and maintenance in the chemical plant engineering sector, where market growth is expected to continue, we will expand our customer base and business fields in the medical and semiconduct

  32. Slide 32: DX Report

    JFE-HD DX Report  We will publish 「DX report 2024」 on 7 th February 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

  33. Slide 33: Appendix(1) Financial data, Profit/Loss Analysis, etc.

    Appendix(1) Financial data, Profit/Loss Analysis, etc. Copyright © 2025 JFE Holdings, Inc. All Rights Reserved. 33

  34. Slide 34: Profitability Targets and Main Performance

    JFE-HD Profitability Targets and Main Performance The 7th mid-term business FY2021 FY2022 FY2023 FY2024 plan Actual Actual Actual Forecast FY2024 Business Profit ¥416.4bn. ¥235.8bn. ¥298.2bn. ¥115.0bn. Consolidated ¥320.0bn. [Excluding Inventory Valuation etc.] [¥222.4bn.] [¥162.8bn] [¥296.2bn.] [¥2

  35. Slide 35: Cash Flow, Debt/EBITDA Ratio

    JFE-HD Cash Flow, Debt/EBITDA Ratio  At the end of FY2024, the Debt/EBITDA ratio is expected to be x4.8. FY2024 （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 Target of 7th mid-term Net Profit CAPEX

  36. Slide 36: Main Financial Data

    JFE-HD Main Financial Data JAAP 【IFRS】 FY15 FY16 FY17 FY18 FY18 FY19 FY20 FY21 FY22 FY23 (bn. yen, times) (bn. yen, times) Ordinary Income 64.2 84.7 216.3 221.1 Business profit 232.0 37.8 (12.9) 416.4 235.8 298.2 EBITDA 254.4 279.9 388.8 405.9 EBITDA ＊1 428.2 269.4 223.4 668.7 505.4 572.3 ROS 1.9% 2

  37. Slide 37: Financial Results for Fiscal Year 2024

    JFE Steel Financial Results for Fiscal Year 2024 FY2022 FY2023 FY2024 Unit 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q billion Revenue yen 932.6 986.3 986.9 975.3 3,881.1 917.2 948.6 915.6 934.6 3,716.0 860.6 868.7 828.9 billion Segment Profit 93.0 55.2 21.8 (23.2) 146.8 68.1 54.7 48.2 31.7

  38. Slide 38: ¥7.4bn. Increase in JFE Steel's Segment Profit

    JFE Steel ¥7.4bn. Increase in JFE Steel’s Segment Profit (FY2024.2Q (Actual) vs. FY2024.3Q (Actual)) （billion yen） FY2024 Change JFE Steel 1Q 2Q 3Q 4Q Full Year 2Q→3Q (Actual) (Actual) (Actual) (Forecast) Segment Profit 31.5 3.0 10.4 (18.9) 26.0 7.4 Excluding Inventory 36.5 51.0 44.4 (9.9) 122.0 (6.

  39. Slide 39: ¥29.3bn. Decrease in JFE Steel's Segment Profit

    JFE Steel ¥29.3bn. Decrease in JFE Steel’s Segment Profit (FY2024.3Q (Actual) vs. FY2024.4Q (Forecast)) （billion yen） FY2024 Change JFE Steel 1Q 2Q 3Q 4Q Full Year 3Q→4Q (Actual) (Actual) (Actual) (Forecast) Segment Profit 31.5 3.0 10.4 (18.9) 26.0 (29.3) Excluding Inventory 36.5 51.0 44.4 (9.9) 122

  40. Slide 40: Growth Strategy in India

    JFE Steel Growth Strategy in India  Completion of acquisition of thyssenkrupp Electrical Steel India (tkES India) through a joint venture (J2ES) established with JSW. (Released on 31st January 2025)  Acquisition of tkES India completed Acquired thyssenkrupp Electrical company Steel India Private n

  41. Slide 41: Orders of JGreeX Green Steel

    JFE Steel Orders of JGreeXTM Green Steel  The fields of orders have expanded; orders received mainly from domestic shipbuilding and construction, but also from electric power, consumer goods, and overseas markets.  First order of steel plates for domestic public works, and of hot rolled steel shee

  42. Slide 42: Efforts to Create a Green Steel Market

    JFE Steel Efforts to Create a Green Steel Market  We propose the popularization of green steel products and energy policy issues for realization of decarbonized society. （Jun 6 th, 2 0 2 4 , 5 6 th Adviso ry Com m ittee for N atural R esourc e s and Energy, 5 6 th Strategi c Policy Com m ittee）  I

  43. Slide 43: Orders by Business Field

    JFE Engineering Orders by Business Field （billion yen） Business FY2023 FY2024 Main orders received in 1H of FY2024 Change Field Actual Outlook ★・・・New projects received in 2Q of FY2024 Renewal works of domestic waste treatment facility [Kanagawa, Waste ★Hokkaido] to 243.7 275.0 31.3 Construction wor

  44. Slide 44: Appendix(2) Business Environmental Indicators, etc.

    Appendix(2) Business Environmental Indicators, etc. Copyright © 2025 JFE Holdings, Inc. All Rights Reserved. 44

  45. Slide 45: Combined Inventories of HR, CR and Coated Steel Sheet

    Domestic Combined Inventories of HR, JFE Steel 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 Nov 2024 Oct 2024 Nov 2023 MoM YoY 1,000 1 Inventories -90 +94 3,917 4,007 3,823 （000t） (-2.2%) (+2.4%)

  46. Slide 46: Inventories of Plate and Wide Flange Shapes

    JFE Steel Domestic Inventories of Plate (Plate Shear) Market Environment and Wide Flange Shapes （000t） （Month） （000t） Inventories （Month） 500 3.5 250 Shipment 4.0 Inventories Inventory Ratio (Right Axis) Inventory Ratio (Right Axis) 450 3.0 200 3.5 400 2.5 150 3.0 350 2.0 100 2.5 300 1.5 Nov Oct Nov

  47. Slide 47: Trend of Import Steel (Ordinary Steel)

    JFE Steel Domestic Trend of Import Steel (Ordinary Steel) Market Environment （000t） 600 S. Korea China Taiwan Others 500 400 300 200 Nov 100 Oct 2024 Nov 2023 2024 MoM YoY Import Steel -9 +30 443 452 413 (000t) (-2.0%) (+7.3%) 0 Oct Oct Oct Oct Oct Oct Jul Oct Jul Jul Jan Jul Jan Apr Jul Jan Apr Jul

  48. Slide 48: Price Trend of Import Steel

    JFE Steel Domestic Market Environment Price Trend of Import Steel （000/ｔ） 120 110 100 90 80 70 60 50 40 Oct Oct Oct Oct Oct Oct Jul Oct Jul Oct Jul Jan Oct Jul Jan Apr 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 2024 Data: T

  49. Slide 49: Crude Steel & Im/Export, China

    JFE Steel Overseas Crude Steel & Im/Export, China Market Environment （Mｔ） Export (Left Axis) Import (Left Axis) Crude steel (Right Axis) （Mｔ） 12 120 10 100 8 80 6 60 4 Apr-Dec 40 Dec 2024 MoM 2024 YoY Crude Steel（Mt） 76.0 -3.1% 744.6 -1.5% 2 20 Export（Mt） 9.7 +4.8% 85.3 +19.9% 0 0 Jan Jan Jan Jan Ja

  50. Slide 50: Inventories in China by Product

    JFE Steel Overseas Inventories in China by Product Market Environment （Mｔ） 30.0 100.0% Bar Rod & Wire Plate HR CR Change 50.0% 25.0 0.0% 20.0 -50.0% 15.0 -100.0% -150.0% 10.0 -200.0% 5.0 Dec 2024 Nov 2024 Dec 2023 -250.0% MoM YoY -0.3 -1.3 Inventory（Mt） 7.6 7.9 8.9 0.0 (-3.7%) (-14.4%) -300.0% 1月 4月

  51. Slide 51: Metal Spread Trend

    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

  52. Slide 52: Trend of Sub Material's Market Price

    (￠/lb) 60 110 160 210 260 (US$/t) 1,000 1,400 1,800 2,200 2,600 600 2016.1 2016.1 2016.7 2016.7 FeCr 2017.1 FeMn 2017.1 2017.7 2017.7 2018.1 2018.1 2018.7 2018.7 2019.1 Raw 2019.1 2019.7 2019.7 Materials 2020.1 2020.1 2020.7 2020.7 2021.1 2021.1 2021.7 2021.7 2022.1 2022.1 2022.7 2022.7 2023.1 2023.

  53. Slide 53: 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 2016.4 2017.4 2018.4 2019.4 2020.4 2021.4 2022.4 2023.4 2024.4 2016.10 2017.10 2018.1

  54. Slide 54: Links to the Reports Published during FY2024

    JFE-HD Links to the Reports Published during FY2024 Report URL QR code JFE Group REPORT https://www.jfe- 2024 holdings.co.jp/en/investor/library/gro up-report/index.html Sustainability https://www.jfe- holdings.co.jp/en/sustainability/index. html Sustainability REPORT https://www.jfe- 2024 holdings.

  55. Slide 55: Copyright © 2025 JFE Holdings, Inc. All Rights Reserved.

    Copyright © 2025 JFE Holdings, Inc. All Rights Reserved. Copyright © 2025 JFE Holdings, Inc. All Rights Reserved. 55

JFE Holdings — Q3 FY2024 Earnings Presentation on 6ix