Jfe Holdings, Inc. · TSE:5411
Jfe — H1 FY2022 Earnings Presentation
82 slides from Jfe's earnings presentation, Nov 4, 2022
Slide 1: Financial Results for First Half of Fiscal Year 2022
Securities Code：5411.T JFE Group Financial Results for First Half of Fiscal Year 2022 ending March 31, 2023 JFE Holdings, Inc. November 4, 2022
Slide 2: Key Points of today's Announcement
JFE-HD Key Points of today’s Announcement Results • Business profit in 1H of FY2022 was ¥187.9 bn. increased by ¥22.9 bn. from previous for 1H of forecast mainly due to profit growth from improving spreads in the steel business. FY2022 (decreased by ¥10.9 bn. year-on-year) • Full-year business profi
Slide 3: A table of contents
A table of contents JFE Holdings’ Financial Results for First Half of Fiscal Year 2022 (April 1 to September 30, 2022) and Financial Forecasts for Fiscal Year 2022 (April 1, 2022, to March 31, 2023) Dividends Financial Results for First Half of Fiscal Year 2022 and Financial Forecast for Fisca
Slide 4: Consolidated Results for First Half of Fiscal Year 2022 and Forecast
Consolidated Results for First Half of Fiscal Year 2022 (April 1 to September 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 1H of FY2022 was ¥187.9bn. (increased by ¥22.9bn. from previous forecast, decreased by ¥10.9bn. year-on-year) Full-year business profit is expected to be ¥255.0bn. (increased by ¥20.0bn. from previous forecast, decreas
Slide 6: Financial Results and Forecast for Fiscal Year 2022 (by Segment)
JFE-HD Financial Results and Forecast for Fiscal Year 2022 (by Segment) FY2022 FY2022 Change FY2021 Change Forecast Forecast FY2021(Actual) Actual (Previous) (Updated) →FY2022(Updated) Previous→Updated (Billion yen) 1H Full 1H Full 1H Full 1H Full 1H Full (Apr-Sep) Year (Apr-Sep) Year (Apr-Sep) Year
Slide 7: Demand for steel and Crude steel production
JFE-HD Demand for steel and Crude steel production The economy and demand for steel continue to recover, but the recovery has been slow since the last announcement. Domestic：Parts supply constraints continue in the automotive sector. The decline in auto production is longer than previous expected.
Slide 8: Initiatives for Improving Sales Price
JFE-HD Initiatives for Improving Sales Price In the 1H of FY2022, we achieved further sales price improvement from previous forecast by accelerating the reflections of metal and commodity costs in addition to having reflected key raw material cost to sales price without delay, including the impact
Slide 9: Dividends
Dividends 9
Slide 10: Dividend
JFE-HD Dividend JFE Holdings has decided to pay an interim dividend of 50 yen per share at its Board of Directors. (Last announcement : 40 yen per share) A decision regarding the year-end dividend has been postponed while the company carefully monitors its ongoing performance. Pay-out Ratio 160
Slide 11: JFE Steel
JFE Steel Financial Results for First Half of Fiscal Year 2022 and Financial Forecast for Fiscal Year 2022 11
Slide 12: Financial Forecast for Fiscal Year 2022
JFE Steel Financial Forecast for Fiscal Year 2022 FY2021 Actual FY2022 Updated Forecast FY2022 Unit Full Full Previous Forecast 1H 2H 1H 2H Year Year 1H Full Year billion Revenue yen 1,410.4 1,763.0 3,173.4 1,918.9 2,041.1 3,960.0 1,975.0 4,100.0 Segment billion 158.5 165.2 323.7 148.2 16.8 165.0 12
Slide 13: 28.2bn. Increase in JFE Steel's Segment Profit
JFE Steel 28.2bn. Increase in JFE Steel’s Segment Profit (1H of FY2022 (Previous Forecast) vs. 1H of FY2022(Actual)) （billion yen） FY2022 FY2022 Change JFE Steel 1H (Forecast) 1H (Actual) Segment Profit 120.0 148.2 28.2 Excluding Inventory Valuation etc.* 11.0 32.2 21.2 1. Cost ±0.0 2. Volume and Mi
Slide 14: 10.3bn. Decrease in JFE Steel's Segment Profit
JFE Steel 10.3bn. Decrease in JFE Steel’s Segment Profit (FY2021.1H (Actual) vs. FY2022.1H (Forecast)) （billion yen） FY2021 FY2022 Change JFE Steel 1H(actual) 1H(actual) Segment Profit 158.5 148.2 (10.3) Excluding Inventory Valuation etc.* 68.5 32.2 (36.3) 1. Cost +10.0 • Capital investment effects,
Slide 15: Current Business Environment (Domestic)
JFE Steel Current Business Environment（Domestic） Parts supply constraints are improving, but the decline in auto production is longer than previous expected. Uncertainty about the future due to rising prices and a slowdown in overseas economies has led to some risk-averse moves such as buying re
Slide 16: Current Business Environment (Overseas)
JFE Steel Current Business Environment（Overseas） The level of activity in the automobile and other manufacturing industries is recovering. Demand for steel products overseas is currently weak. For example, demand for steel in China continues to stagnate due to a slump in the real estate market a
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, but it remain in the high range. • As
Slide 18: 15.0bn. Increase in JFE Steel's Segment Profit
JFE Steel 15.0bn. Increase in JFE Steel’s Segment Profit (FY2021 (Previous Forecast) vs. FY2021(Updated Forecast)) （billion yen） FY2022 FY2022 Change JFE Steel Previous Forecast Updated Forecast Segment Profit 150.0 165.0 15.0 Excluding Inventory Valuation etc.* 28.0 83.0 55.0 1. Cost ±0.0 2. Volume
Slide 19: 158.7Bn. Decrease in JFE Steel's Segment Profit
JFE Steel 158.7Bn. Decrease in JFE Steel’s Segment Profit (FY2021 (Actual) vs. FY2022 (Forecast)) （billion yen） FY2021 FY2022 Change JFE Steel Actual Forecast Segment Profit 323.7 165.0 (158.7) Excluding Inventory Valuation etc.* 129.7 83.0 (46.7) 1. Cost • Cost reductions +23.0 +10.0 • Chiba No.6 b
Slide 20: 131.4Bn. Increase in JFE Steel's Segment Profit
JFE Steel 131.4Bn. Increase in JFE Steel’s Segment Profit (FY2022.1H vs. FY2022.2H) （billion yen） FY2022 Forecast Change JFE Steel 1H 2H Full year Segment Profit 148.2 16.8 165.0 (131.4) Excluding Inventory Valuation etc.* 32.2 50.8 83.0 18.6 1. Cost • Recovery for Chiba No.6 blast furnace refit by
Slide 21: Impact of the depreciation of the yen (Steel Business)
JFE Steel Impact of the depreciation of the yen(Steel Business) While the yen has depreciated since the last announcement, the overpayment of foreign currency has shrunk due to the calmer raw material market and other factors. The impact of foreign exchange effects on trade in FY2022 is expected
Slide 22: Shifting Focus from Quantity to Quality
JFE Steel Shifting Focus from Quantity to Quality （Progress of Structural Reform and Major CAPEX） Steadily implementing structural reforms and capital investment to shift from quantity to quality. August 2022: Shutdown of Tin Mills in Chiba was completed, and production of steel sheet for cans w
Slide 23: Initiatives toward achieving the 7th mid-term plan
JFE Steel Initiatives toward achieving the 7th mid-term plan from 2nd half of FY2022 In the second half of FY2022, segment profit（Excluding Inventory Valuation etc.）in the steel business is expected to be about 100 billion yen on an annual basis. We will implement various measures, including the
Slide 24: JFE Engineering
JFE Engineering Financial Forecast for Fiscal Year 2022 24
Slide 25: Financial Forecast for Fiscal Year 2022 (Engineering)
JFE Engineering Financial Forecast for Fiscal Year 2022 Current Business Environment/Overview of Financial Status Segment profit in 1H of FY2022 was deficit ¥3.9bn., decreased by ¥7.9 bn. from previous forecast, due to rising price of material and equipment, change in schedule of progression, and
Slide 26: JFE Shoji
JFE Shoji Financial Forecast for Fiscal Year 2022 26
Slide 27: Financial Forecast for Fiscal Year 2022 (Trading)
JFE-Shoji Financial Forecast for Fiscal Year 2022 Current Business Environment/Overview of Financial Status Segment profit in 1H of the FY2022 increased significantly year-on-year due to better steel demand and price than expected mainly in Northern America. Full-year segment profit is expected to
Slide 28: Topics
Topics 28
Slide 29: Progress of development plans for the land of Keihin district
JFE Steel Progress of development plans for the land of Keihin district The development area is a huge land. (5 areas, Approx. 400ha) Develop through “Sale”, ”Lease”, and ”Do business (by ourselves)”, consistent with the land use policy by Kawasaki City, which will be disclosed by the end of FY2
Slide 30: Published JFE Group Report and CSR Report
JFE-HD Published JFE Group Report and CSR Report Published JFE Group Report 2022 and CSR Report JFE Group Report : Published 20th Sep. 2022 CSR Report : Published 28th Sep. 2022 1. Management Strategy ～Tackling the Biggest Challenge Since Our Founding to Ensure Earth’s Prosperity～ • Message from the
Slide 31: Appendix(1) Profit/Loss Analysis
Appendix(1) Profit/Loss Analysis 31
Slide 32: Main Financial Data
JFE-HD Main Financial Data J-GAAP IFRS FY14 FY15 FY16 FY17 FY18 FY18 FY19 FY20 FY21 ’22 Forecast (bn. Yen, times) (bn. Yen, times) Ordinary Income 231.0 64.2 84.7 216.3 221.1 Business profit 232.0 37.8 -12.9 416.4 255.0 EBITDA 421.5 254.4 279.9 388.8 405.9 EBITDA ＊1 428.2 269.4 223.4 668.7 525.0 ROS
Slide 33: 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 ¥255.0 billion Profit attributable to Consolidated owners of the parent ¥220.0 billion ¥-21.8
Slide 34: Progress of Cash Flow Improvements, Debt/EBITDA Ratio
JFE-HD Progress of Cash Flow Improvements, Debt/EBITDA Ratio At the end of FY2022, the Debt/EBITDA ratio is expected to be x3.7. FY2022 （billion yen） Consolidated Cash Flow Forecast Progress of Debt/EBITDA Ratio Cash-in Cash-out (billion yen) Debt/EBITDA Ratio 16,000 (Right Axis) 9.0 Net Profit CA
Slide 35: Financial Results for First Half of Fiscal Year 2022
JFE Steel Financial Results for First Half of Fiscal Year 2022 FY2021 FY2022 Unit Full 1Q 2Q 1H 2H 1Q 2Q 1H Year billion Revenue yen 638.5 771.9 1,410.4 1,763.0 3,173.4 932.6 986.3 1,918.9 billion Segment Profit yen 69.7 88.8 158.5 165.2 323.7 93.0 55.2 148.2 Excluding billion Inventory yen 25.7 42.
Slide 36: 17.0Bn. Decrease in JFE Steel's Segment Profit
JFE Steel 17.0Bn. Decrease in JFE Steel’s Segment Profit (FY2021.2H (Actual) vs. FY2022.1H (Actual)) （billion yen） FY2021 FY2022 Change JFE Steel 2H(actual) 1H(actual) Segment Profit 165.2 148.2 (17.0) Excluding Inventory Valuation etc.* 61.2 32.2 (29.0) 1. Cost ±0.0 2. Volume and Mix (12.0) 3. Sale
Slide 37: 37.8Bn. Decrease in JFE Steel's Segment Profit
JFE Steel 37.8Bn. Decrease in JFE Steel’s Segment Profit (FY2022.1Q (Actual) vs. FY2022.2Q (Actual)) （billion yen） FY2022 JFE Steel Change 1Q (Actual) 2Q (Actual) 1H Segment Profit 93.0 55.2 148.2 (37.8) Excluding Inventory Valuation etc.* (23.0) 55.2 32.2 78.2 1. Cost ±0.0 2. Volume and Mix (4.0) 3
Slide 38: Appendix(2) Business Environmental Indicators, etc.
Appendix(2) Business Environmental Indicators, etc. 38
Slide 39: 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 5 Maker Whole Saler Coil Center Inventory Ratio(Right axis) 4,000 4 3,000 3 2,000 2 Change Sep, From From Aug, 2022 Sep, 2022 1,000 2022 previous previous 1 month year Inventories -47 +31
Slide 40: 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） （Month） （000ｔ） （Month） Inventories Inventories 500 3.5 250 3.5 Shipment Inventory Ratio(Right axis) Inventory Ratio(Right axis)
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 Change Sep, From From Aug, Sep, Unit: 000t 2022 Previous Previous 2022 2021 100 Month Year －28 －1 Import Steel 361 389 362 (ー7.2%) (－0.4%) 0 Jan Mar May Jul Sep Nov Jan
Slide 42: Price Trend of Import Steel
JFE Steel Domestic Market Environment Price Trend of Import Steel （000 yen /ｔ） 120 110 100 90 80 70 60 50 40 May May May May May May May Mar Mar Mar Mar Mar Mar Mar Nov Nov Nov Nov Nov Jan Nov Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jul Jan Jul Sep Sep Sep Sep Sep Sep Sep 2016 2017 2018 2019 2020 20
Slide 43: Crude Steel & Im/Export, China
JFE Steel Overseas Market Environment Crude Steel & Im/Export, China （Mｔ） Export（Left axis） Import（Left axis） Crude steel（Right axis） （Mｔ） 9 120 8 100 7 6 80 5 60 4 3 Sep, From Jan-Sep, From 40 2022 Previous 2022 Jan-Sep, month 2022 2 Crude Steel（Mt） 87.0 3.7% 532.4 -0.5% 20 1 Export（Mt） 5.0 -19.0%
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 Sep, From From Aug, Sep, 2022 Previous Previous 2022 2022 -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 900 900 800 800 700 700 600 HRC 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: Raw Materials Trend of Sub Material's Market Price
(￠/lb) 60 110 160 210 260 (US$/t) 1,000 1,400 2,200 2,600 1,800 600 2016.1 2016.1 2016.7 FeCr 2016.7 2017.1 FeMn 2017.1 2017.7 2017.7 2018.1 2018.1 2018.7 2018.7 2019.1 2019.1 2019.7 2019.7 2020.1 2020.1 2020.7 2020.7 2021.1 2021.1 2021.7 2021.7 2022.01 2022.01 2022.07 2022.07 (US$/lb) (US$/t) 4.0 6
Slide 47: Raw Materials Trend of Sub Material's Market Price
JFE Steel Raw Materials Trend of Sub Material’s Market Price （yen/ｔ） Scrap ($/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: Progress of Initiatives of Steel Business: 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 （billion yen） Business FY2021 FY2022 Main orders received in FY2022 Change Area ★・・・New projects received in 2Q of FY2022 Actual Forecast Construction works of domestic waste treatment plant [★Okayama] Waste Renewal construction of domestic waste treatment pla
Slide 50: Appendix(3) The 7th Medium-Term Business Plan
Appendix(3) The 7th Medium-Term Business Plan 50
Slide 51: 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 52: Initiatives to achieve environmental and social sustainability
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 53: 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 54: 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 55: [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 56: 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 57: 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 58: 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 59: Social sustainability: Contribution to Regional Societies through Engineering
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 60: 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 61: 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 62: 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 63: 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 64: 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 65: 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 66: 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 67: 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 68: 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 69: 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 70: 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 71: 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 72: 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 73: Appendix(4) JFE Steel Carbon Neutral Strategy Briefing
Appendix(4) JFE Steel Carbon Neutral Strategy Briefing 73
Slide 74: JFE Steel's Transition to Low-carbon Processes
JFE Steel’s Transition to Low-carbon Processes Develop ultra-innovative technologies for carbon neutrality Establish & implement ultra- innovative technologies 2050 2024 (GI Use of funds) Transition Period 2030 Innovation Period 18% less Use EAFs 30% or more Carbon Adopt optimal processes CO2 Expand
Slide 75: JFE Steel's Carbon Neutrality Vision 2050
JFE Steel’s Carbon Neutrality Vision 2050 Oxygen Fuel/oxygen + Store CO2 in slag/concrete CCS Storage Reduction gas powder material Converter More energy-saving equipment CO2 CCS Increased use of scrap Carbon-free (external conditions) electricity Introduce EAFs (external conditions) CCS Energy savi
Slide 76: JFE's Carbon Neutrality Action Plan
JFE’s Carbon Neutrality Action Plan ▶︎ JFE Steel is introducing low-carbon steel processes during its “transition period” to 2030. ▶︎ In its “innovation period” from 2030 to 2050, JFE Steel aims to develop and implement ultra- innovative technologies for carbon neutrality. Transition period Innovati
Slide 77: Transition to Low-carbon Processes
Transition to Low-carbon Processes ▶︎ Continue to develop ultra-innovative technologies for decarbonized steel processes by 2030 ▶︎ Increasingly use low-carbon technologies to cut CO2 by 30% or more by FY2030 Energy savings and Low-carbon feedstock & Low-carbon processes high efficiency fuel Upgrade
Slide 78: Development Project Supported by Green Innovation Fund
Development Project Supported by Green Innovation Fund ▶︎ This project, targeted at using hydrogen in ironmaking and commissioned and subsidized by NEDO*, was selected in December 2021 to receive support from the Green Innovation Fund. ▶︎ The fund is helping to accelerate the development of technolo
Slide 79: Overall Scale of GI Fund Projects
Overall Scale of GI Fund Projects ▶︎ Development toward Stage Gate Reviews scheduled mainly in FY2025–2026 ▶︎ Studies also underway with a view to actual implementation in 2030–2040s Develop technologies & conduct Medium-scale Large/full-scale small-scale tests tests tests ★ Stage Gate 2021～2025 202
Slide 80: Stimulating Demand for Green Steel
Stimulating Demand for Green Steel ▶︎ In the EU, green steel is branded and sold using a mass balance approach. ▶︎ Achieving 30% CO2 reduction by FY2030 will enable JFE Steel to supply up to 5M tons of green steel per year using the same approach. ▶︎ To create a carbon-neutral world, government poli
Slide 81: Initiatives for Collaborating with Society
Initiatives for Collaborating with Society • Realizing carbon-neutral steelmaking is a top priority for JFE Steel, but generating environmental value will involve large cost increases, so there are limits on what a single company can do. • Mechanisms are needed so that society, as the beneficiary of
Slide 82: Copyright © 2022 JFE Holdings, Inc. All Rights Reserved
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