Jfe Holdings, Inc. · TSE:5411

Jfe — FY2022 Earnings Presentation

87 slides from Jfe's earnings presentation, May 8, 2023

Slide 1: JFE Group Financial Results for Fiscal Year 2022
Securities Code：5411.T JFE Group Financial Results for Fiscal Year 2022 ending March 31, 2023 JFE Holdings, Inc. May 8, 2023 Copyright © 2023 JFE Holdings, Inc. All Rights Reserved. 1
Slide 2: A table of contents
A table of contents  Financial Highlights  Progress of the 7th Medium-Term Business Plan ・Economic Sustainability ・Environmental & Social Sustainability  JFE Holdings’ Financial Results for Fiscal Year 2022 (April 1, 2022 to March 31, 2023)  Financial Forecast for Fiscal Year 2023  Dividends Ap
Slide 3: Financial Highlights
JFE-HD Financial Highlights Financial Results Financial Forecast Progress of the 7th mid- for FY2022 for FY2023 term business plan Main initiatives are Landing as previous forecast. Promote shifting Focus from quantity to quality by improving making steady progress. (announced in February) sales pri
Slide 4: Main Performance & Profitability Targets and Results
JFE-HD Main Performance & Profitability Targets and Results The 7th mid-term FY2021 FY2022 FY2023 business plan Actual Actual Forecast FY2024 Business Profit ¥320.0 ¥ 416.4Bn. ¥ 235.8bn. ¥290.0bn. Consolidated [Excluding Inventory Valuation etc.] bn. [¥2,224bn.] [¥162.8bn] [¥280.0bn.] Profit attribu
Slide 5: Progress of the 7th Medium-Term Business Plan (Economic Sustainability)
Progress of the 7 th Medium-Term Business Plan （Economic Sustainability） Copyright © 2023 JFE Holdings, Inc. All Rights Reserved. 5
Slide 6: Improving sales price and product-mix enhancements
JFE Steel [Main initiatives of Steel Business] Improving of sales price and Product-mix enhancements  In FY2022, Continue to improve sales prices due to the  Percentage of highly value-added products in reflections of metal and commodity costs*, overhaul FY2022 is about 47%. of extra pricing, and
Slide 7: Progress on Structural Reform and Cost Reduction
JFE Steel [Main initiatives of Steel Business] Progress on Structural Reform and Cost Reduction  In FY2022, Shutdown of Tin Mills in Chiba & Consolidation of steel sheet production for cans in Fukuyama and Refit of No. 6 Blast Furnace in Chiba were completed steadily.  In FY2023, structural reform
Slide 8: Profit in the steel business
JFE Steel Profit in the steel business  In FY2023, profit per ton excluding inventory valuations etc. is expected to be reach 9,000yen/t.  In FY2024, Aim to achieve the Mid-Term Target(10,000yen/t) or more.  A medium- to long-term growth strategy is also being promoted, with an eye on the 8th med
Slide 9: Paths toward achieving the Seventh Medium-Term Plan
JFE Steel Paths toward achieving the Seventh Medium-Term Plan  In FY2023, segment profit excluding Inventory Valuation etc. in the steel business is expected to be 190 billion yen.  In FY2024, due to steadily implementing various measures, including structural reforms, sales price improvements, an
Slide 10: Progress of Engineering and Trading Business
JFE Engineering・JFE Shoji Progress of Engineering and Trading Business Engineering Business 【Segment Profit】 FY2022 Initiatives 400 ¥24.0bn. ¥26.0bn. ¥13.4bn. ¥25.0bn. ¥35.0bn. ・Orders received in FY2022 reached a record high (¥564.9bn.) due to an increase in core infrastructure 300 fields, such as
Slide 11: Progress of the 7th Medium-Term Business Plan (Environmental & Social Sustainability)
Progress of the 7 th Medium-Term Business Plan （Environmental & Social Sustainability） Copyright © 2023 JFE Holdings, Inc. All Rights Reserved. 11
Slide 12: Actions for Carbon Neutrality in the JFE Group
JFE Holdings Actions for Carbon Neutrality in the JFE Group  JFE Steel September 1, 2022: Held a briefing of carbon neutrality vision and action plans. FY2022 target：  JFE Engineering 11.0 million tons Construction and operation of renewable energy power plants and recycling facilities contributed
Slide 13: Emissions-reduction in JFE Steel (Progress in FY2022)
JFE Steel Emissions-reduction in JFE Steel (Progress in FY2022)  In FY2022, progress was made as planned against targets.  FY2024 targets also expected to be achieved (Projected reduction of about 3 million tons through energy-saving and CN technologies, and about 7.5 million tons through structur
Slide 14: Investments Program to Achieve 2030 Target
JFE Steel Investments Program to Achieve 2030 Target  The target of reducing emissions by developing energy-saving and CN technologies is 10 million tons or more from FY2021 to FY2030.  The approval and execution of investments has been steadily promoted to achieve reduction targets. About 110 bil
Slide 15: Topics for carbon neutrality
JFE Steel Topics for carbon neutrality Introduction of EAF in Chiba（New!） • Decided to install a new EAF at Stainless Steel Manufacturing in Chiba. • The capacity to dissolve scrap is expected to increase by up to 6 times compared to conventional process and reduce CO2 emissions by up to 450,000 ton
Slide 16: Progress in Development of Ultra-innovative Technologies
JFE Steel Progress in Development of Ultra-innovative Technologies  Development of ultra-innovative technologies is being steadily promoted on a multitrack approach with support from the GI Fund, etc.  Construction of test furnaces for each technology is scheduled to begin in 2023 for aiming at ea
Slide 18: Financial Results for Fiscal Year 2022
JFE-HD Financial Results for Fiscal Year 2022  Business profit in FY2022 was ¥235.8bn. (increased by ¥0.8bn. from previous forecast, decreased by ¥180.6bn. year-on-year)  Profit Attributable to Owners of Parent in FY2022 was ¥162.6bn. FY2021 FY2022 FY2022 Change Change FY2021→ Forecast Actual Fore
Slide 19: Financial Results for Fiscal Year 2022 (by Segment)
Financial Results for Fiscal Year 2022 JFE-HD (by Segment) FY2021 FY2022 FY2022 Change Change FY2021→ Forecast Actual Forecast Actual FY2022 →Actual （billion yen） Full Year Full Year 1H 2H Full Year Full Year Full Year Steel Business 3,173.4 3,860.0 1,918.9 1,962.1 3,881.1 707.7 21.1 Engineering Bus
Slide 20: Consolidated Cash Flow and Debt/EBITDA Ratio
JFE-HD Consolidated Cash Flow and Debt/EBITDA Ratio  Debt in FY2022 was ¥1,862.9bn. Net Debt* was decreased year on year. *Net Debt = Debt - Cash and cash equivalents. （Billion yen） Progress of Debt/EBITDA Ratio Consolidated Cash Flow Forecast in FY2022 (billion yen) Debt/EBITDA Ratio Cash-in Cash-
Slide 22: Financial Results in Fiscal Year 2022
JFE Steel Financial Results in Fiscal Year 2022 FY2021 FY2022 FY2022 Previous Unit Full Year 1H 2H Full year Forecast 3Q 4Q (Full Year) billion Revenue yen 3,173.4 1,918.9 986.9 975.3 1,962.2 3,881.1 3,860.0 Segment billion 323.7 148.2 21.8 (23.2) (1.4) 146.8 150.0 Profit yen Excluding Inventory bil
Slide 23: 176.9Bn. Decrease in JFE Steel's Segment Profit
JFE Steel 176.9Bn. Decrease in JFE Steelʼs Segment Profit (FY2021 (Actual) vs. FY2022 (Actual)) （billion yen） FY2021 FY2022 Change JFE Steel Actual Actual Segment Profit 323.7 146.8 (176.9) Excluding Inventory Valuation etc. 129.7 73.8 (55.9) 1. Cost • Positive : Promote cost reductions ±0 Negative:
Slide 25: Financial Results for Fiscal Year 2022 (Engineering, Trading)
JFE Engineering・JFE Shoji Financial Results for Fiscal Year 2022  JFE Engineering: Revenues reached a record high of ¥512.5bn (up ¥4.3bn. from FY2021) Segment profit was ¥13.4bn., almost unchanged from the previous forecast (down ¥12.6bn. from FY2021)  JFE Shoji: Segment profit was ¥65.1bn., incre
Slide 27: Current Business Environment (Steel Business)
JFE Steel Current Business Environment（Steel Business） • Domestic：Domestic steel demand is expected to improve gradually, supported by a recovery in the automotive sector as supply constraints for semiconductors and other products are eased, although some of the Sales effects are attributable to hig
Slide 28: Financial Forecast for FY2023 (Steel Business)
JFE Steel Financial Forecast for FY2023 (Steel Business) Crude Steel Production approx. 25.0Mt Exchange Rate 130 yen/$ (JFE Steel standalone) per year FY2022 FY2023 Change Actual(A) Forecast(B) (B)-(A) （billion yen） Segment Profit 146.8 200.0 53.2 Excluding Inventory Valuation etc. 73.8 190.0 116.2
Slide 29: Financial Forecast for FY2023 (Engineering・Trading)
JFE Engineering・JFE Shoji Financial Forecast for FY2023 (Engineering・Trading) FY2022 FY2023 （Actual）（Forecast） Change (A) (B) (B)-(A) (billion yen) Engineering Orders 564.9 580.0 15.1 Segment Profit 13.4 25.0 11.6 Trading Segment Profit 65.1 48.0 (17.1) Engineering Business • Orders: Expected to ex
Slide 30: Financial Forecast for FY2023
JFE-HD Financial Forecast for FY2023 FY2022 FY2023 Change （billion yen） Actual(A) Forecast(B) (B)-(A) Revenue 5,268.7 5,540.0 271.3 Business Profit 235.8 290.0 54.2 [Excluding Inventory Valuation etc.] [162.8] [280.0] [117.2] Steel Business 146.8 200.0 53.2 Engineering Business 13.4 25.0 11.6 Tradin
Slide 32: Dividend
JFE-HD Dividend  JFE Holdings has decided to propose at its general meeting of shareholders a year-end dividend of 30 yen per share, as previously announced.(annual dividend: 80 yen)  The annual dividend for FY2023 is expected to be 100 yen per share, based on our payout ratio policy of approximat
Slide 34: Main Financial Data
JFE-HD Main Financial Data JAAP IFRS FY14 FY15 FY16 FY17 FY18 FY18 FY19 FY20 FY21 ’22 (bn. Yen, times) (bn. Yen, times) Ordinary Income 231.0 64.2 84.7 216.3 221.1 Business profit 232.0 37.8 -12.9 416.4 235.8 EBITDA 421.5 254.4 279.9 388.8 405.9 EBITDA ＊1 428.2 269.4 223.4 668.7 505.4 ROS 6.0% 1.9%
Slide 35: Financial Results for Third Quarter of Fiscal Year 2022
JFE Steel Financial Results for Third Quarter of Fiscal Year 2022 FY2021 FY2022 Unit Full Full 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Year Year billion Revenue yen 638.5 771.9 832.8 930.2 3,173.4 932.6 986.3 986.9 975.3 3,881.1 Segment billion 69.7 88.8 93.5 71.7 323.7 93.0 55.2 21.8 (23.2) 146.8 Profit yen Exclud
Slide 36: 3.2bn. Decrease in JFE Steel's Segment Profit
JFE Steel 3.2bn. Decrease in JFE Steel’s Segment Profit (FY2022 (Forecast) vs. FY2022(Actual)) （billion yen） FY2022 FY2022 Change JFE Steel Forecast Actual Segment Profit 150.0 146.8 (3.2) Excluding Inventory Valuation etc. 77.0 73.8 (3.2) 1. Cost ±0 2. Volume and Mix ±0 3. Sales and Raw materials ±
Slide 37: 149.6Bn. Yen Decrease in JFE Steel's Segment Profit
JFE Steel 149.6Bn. Yen Decrease in JFE Steel’s Segment Profit (FY2022.1H vs. FY2022.2H) （billion yen） FY2022 Actual Change JFE Steel 1H 2H Full Year Segment Profit 148.2 (1.4) 146.8 (149.6) Excluding Inventory Valuation etc. 32.2 41.6 73.8 9.4 1. Cost • Positive : Promote cost reductions (10.0) Nega
Slide 38: 45.0Bn. Yen Decrease in JFE Steel's Segment Profit
JFE Steel 45.0Bn. Yen Decrease in JFE Steel’s Segment Profit (FY2022.3Q vs. FY2022.4Q) （billion yen） FY2022 JFE Steel Full Change 1Q 2Q 3Q 4Q Year Segment Profit 93.0 55.2 21.8 (23.2) 146.8 (45.0) Excluding Inventory Valuation etc. (23.0) 55.2 22.8 18.8 73.8 (4.0) 1. Cost ±0 2. Volume and Mix ＋11.0
Slide 39: 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, located on the waterfront of the Tokyo metropolitan area and close to Haneda Airport, is a huge land. (5 areas, Approx. 400ha)  Leveraging the characteristics of each area, we are promoting initiatives b
Slide 41: Current Business Environment (Domestic)
JFE Steel Current Business Environment（Domestic）【Trend by Sector】【Outlook for Domestic Ordinary Steel Consumption】 • Demand remains strong and there is a large backlog of 15% orders. mobile Auto- • Restrictions on the supply of semiconductors and other 12.7% (Change YonY） Manufacturing components
Slide 42: Current Business Environment (Overseas)
JFE Steel Current Business Environment（Overseas）【Real GDP Growth Forecast in 2023】（Arrows indicate changes from the previous forecast）【World Steel Demand Forecasts】 World US China India ASEAN-5 Unit：100 million tons 9.0 2022 3.4% 2.1% 3.0% 6.8% 4.4% Actual World China World excl. China Jan.2023 2
Slide 43: Raw materials (Steel Business)
JFE Steel Raw materials（Steel Business) ($/DMT) Iron ore ($/WMT) Coking Coal （Iron Ore Fines from Australia）（Hard Coking Coal from Australia） $225 $700 $200 $600 Term-Contract FOB Term-Contract FOB $175 $500 $150 $400 $125 $300 $100 $200 $75 $100 $50 21/4 21/7 21/10 22/1 22/4 22/7 22/10 23/1 23/4 2
Slide 44: 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 Feb,2023 Jan,2023 Feb,2022 previous previous 1,000 month year 1 Inventories -42 -413 4
Slide 45: Inventories of Plate and Wide Flange Shapes
JFE Steel Domestic Inventories of Plate (Plate Shear) Market Environment and Wide Flange Shapes Inventories of Wide Flange Shapes （000ｔ） Inventories of Plate (Plate Shear) （month）（000ｔ）（month） Inventories 500 3.5 250 3.5 Shipment Inventories Inventory Ratio(Right axis) Inventory Ratio(Right axis) 4
Slide 46: Domestic Trend of Import Steel
JFE Steel Domestic Trend of Import Steel (Ordinary Steel) Market Environment （000ｔ） 600 S.Korea China Taiwan Others 500 400 300 200 Change Feb, From From Jan, Feb, 100 2023 previous previous 2023 2022 month year Import Steel ＋16 ＋58 379 363 321 （000t） (+4.5%) (+18.0%) 0 Jan Mar May Jul Sep Nov Jan M
Slide 47: 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 Oct Oct Oct Oct Oct Oct Jul Oct Jul Jan Jul Jan 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 Data: The Japan Iron and Steel Feder
Slide 48: 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 40 Apr,2022 From From Mar,2023 -Mar,2023 2 Previous Apr,2021 month -Mar,2022 20 1 Crude Steel（Mt） 95.7 +19.6% 1,029.0 +2.1% Export（Mt
Slide 49: Crude Steel & Im/Export, China (Inventories)
JFE Steel Overseas Market Environment Crude Steel & Im/Export, China （Mｔ） 30.0 Bar Rod & Wire Plate HR CR Change by Previous year(%) 100.0% 50.0% 25.0 0.0% 20.0 -50.0% 15.0 -100.0% -150.0% 10.0 -200.0% Change 5.0 From From Mar,2023 Feb,2022 Mar,2022 Previous Previous -250.0% month Year -1.9 -2.1 Inv
Slide 50: Metal Spread Trend (Chinese Spot Basis)
Overseas Metal Spread Trend JFE Steel Market Environment (Chinese Spot Basis) （$/t) （$/t) 1000 1000 900 900 800 800 700 HRC 700 600 600 500 500 400 400 300 300 200 200 Metal 100 Spread 100 0 0 Metal Spread ＝ HRC Price － Raw Materials Cost *HRC Price： Chinese Spot basis Raw Materials Cost： Calculated
Slide 51: Raw Materials Trend of Sub Material's Market Price
(￠/lb) 60 110 160 210 260 (US$/t) 1,000 1,400 1,800 2,200 2,600 600 2016.1 2016.1 2016.7 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 2023.01 2023.01 (US$/l
Slide 52: Raw Materials Trend of Sub Material's Market Price
JFE Steel Raw Materials Trend of Sub Material’s Market Price （yen/ｔ） Scrap ($/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 53: Orders by Business Field
JFE Engineering Orders by Business Field （billion yen） Business FY2021 FY2022 Main orders received in FY2022 Change Field Actual Actual ★・・・New projects received in 4Q of FY2022 Construction works of domestic waste treatment plant [Okayama] Waste Renewal construction of domestic waste treatment plan
Slide 54: Links to the reports published during FY2022
JFE-HD Links to the reports published during FY2022 Report URL QR code JFE Group REPORT https://www.jfe- 2022 holdings.co.jp/en/investor/library/gro up-report/index.html JFE Group CSR https://www.jfe- REPORT 2022 holdings.co.jp/en/csr/data/index.html JFE Group CSR https://www.jfe- REPORT 2022 holdin
Slide 55: Appendix(3) The 7th Medium-Term Business Plan
Appendix(3) The 7th Medium-Term Business Plan 55
Slide 56: 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 57: 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 58: JFE Group Environmental Vision for 2050: Toward Carbon Neutrality
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 59: 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 60: [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 61: 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 62: 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 63: 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 64: 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 65: 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 66: 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 67: 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 68: 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 69: 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 70: 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 71: 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 72: 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 73: 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 74: 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 75: 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 76: 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 77: 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 78: Appendix(4) JFE Steel Carbon Neutral Strategy Briefing
Appendix(4) JFE Steel Carbon Neutral Strategy Briefing 78
Slide 79: JFE Steel's Transition to Low-carbon Processes
JFE Steel’s Transition to Low-carbon Processes 2050 Develop ultra-innovative technologies for carbon Establish & implement ultra- neutrality 2030 innovative technologies 2024 (GI Use of funds) Transition Period Innovation Period 18% less Use EAFs 30% or more Carbon Adopt optimal processes CO2 Expand
Slide 80: 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 CO2 CCS More energy-saving equipment Increased use of scrap Carbon-free (external conditions) Introduce EAFs electricity (external conditions) CCS Energy savi
Slide 81: 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 Innovation
Slide 82: 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 t
Slide 83: 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 technologi
Slide 84: 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 ★ Stage Gate Develop technologies & conduct Medium-scale Large/full-scale small-scale tests tests tests 2021〜2025 2026〜
Slide 85: 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 policie
Slide 86: 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

JFE Holdings — FY2022 Earnings Presentation on 6ix

Jfe — FY2022 Earnings Presentation

Slide 1: JFE Group Financial Results for Fiscal Year 2022

Slide 2: A table of contents

Slide 3: Financial Highlights

Slide 4: Main Performance & Profitability Targets and Results

Slide 5: Progress of the 7th Medium-Term Business Plan (Economic Sustainability)

Slide 6: Improving sales price and product-mix enhancements

Slide 7: Progress on Structural Reform and Cost Reduction

Slide 8: Profit in the steel business

Slide 9: Paths toward achieving the Seventh Medium-Term Plan

Slide 10: Progress of Engineering and Trading Business

Slide 11: Progress of the 7th Medium-Term Business Plan (Environmental & Social Sustainability)

Slide 12: Actions for Carbon Neutrality in the JFE Group

Slide 13: Emissions-reduction in JFE Steel (Progress in FY2022)

Slide 14: Investments Program to Achieve 2030 Target

Slide 15: Topics for carbon neutrality

Slide 16: Progress in Development of Ultra-innovative Technologies

Slide 17: Consolidated Results for Fiscal Year 2022

Slide 18: Financial Results for Fiscal Year 2022

Slide 19: Financial Results for Fiscal Year 2022 (by Segment)

Slide 20: Consolidated Cash Flow and Debt/EBITDA Ratio

Slide 21: JFE Steel Financial Results for Fiscal Year 2022

Slide 22: Financial Results in Fiscal Year 2022

Slide 23: 176.9Bn. Decrease in JFE Steel's Segment Profit

Slide 24: JFE Engineering JFE Shoji Financial Results for Fiscal Year 2022

Slide 25: Financial Results for Fiscal Year 2022 (Engineering, Trading)

Slide 26: Financial Forecast for Fiscal Year 2023

Slide 27: Current Business Environment (Steel Business)

Slide 28: Financial Forecast for FY2023 (Steel Business)

Slide 29: Financial Forecast for FY2023 (Engineering・Trading)

Slide 30: Financial Forecast for FY2023

Slide 31: Dividends

Slide 32: Dividend

Slide 33: Appendix(1) Profit/Loss Analysis

Slide 34: Main Financial Data

Slide 35: Financial Results for Third Quarter of Fiscal Year 2022

Slide 36: 3.2bn. Decrease in JFE Steel's Segment Profit

Slide 37: 149.6Bn. Yen Decrease in JFE Steel's Segment Profit

Slide 38: 45.0Bn. Yen Decrease in JFE Steel's Segment Profit

Slide 39: Progress of development plans for the land of Keihin district

Slide 40: Appendix(2) Business Environmental Indicators, etc.

Slide 41: Current Business Environment (Domestic)

Slide 42: Current Business Environment (Overseas)

Slide 43: Raw materials (Steel Business)

Slide 44: Combined Inventories of HR, CR and Coated Steel Sheet

Slide 45: Inventories of Plate and Wide Flange Shapes

Slide 46: Domestic Trend of Import Steel

Slide 47: Price Trend of Import Steel

Slide 48: Crude Steel & Im/Export, China

Slide 49: Crude Steel & Im/Export, China (Inventories)

Slide 50: Metal Spread Trend (Chinese Spot Basis)

Slide 51: Raw Materials Trend of Sub Material's Market Price

Slide 52: Raw Materials Trend of Sub Material's Market Price

Slide 53: Orders by Business Field

Slide 54: Links to the reports published during FY2022

Slide 55: Appendix(3) The 7th Medium-Term Business Plan

Slide 56: Mid/long-term directions

Slide 57: JFE Group Environmental Vision for 2050

Slide 58: JFE Group Environmental Vision for 2050: Toward Carbon Neutrality

Slide 59: JFE Group's activities for Carbon Neutrality

Slide 60: [Steel Business] Roadmap for Carbon Neutrality

Slide 61: Carbon-recycle Blast Furnace

Slide 62: Groupwide commercialization of offshore wind-power business

Slide 63: Social sustainability: Safety management, HR issues

Slide 64: Social sustainability: Contribution to Regional Societies

Slide 65: Establish economic sustainability (stable earnings power)

Slide 66: 7th mid-term business plan: Steel Business main initiatives

Slide 67: Transition to a lean, robust business structure

Slide 68: Expand and Accelerate Overseas Business

Slide 69: Strategy to Capture Growing Demand for Electrical Steel Sheet

Slide 70: JFE Group-wide Strategy for Electrical Steel Sheet

Slide 71: 7th mid-term business plan: Engineering Business

Slide 72: Engineering Business's Main initiatives

Slide 73: 7th mid-term business plan: Trading Business

Slide 74: Trading Business's Main initiatives

Slide 75: JFE Group's DX strategies

Slide 76: Balance Financial Soundness with Effective Investment

Slide 77: Main Financial Data and Performance & Profitability Targets

Slide 78: Appendix(4) JFE Steel Carbon Neutral Strategy Briefing

Slide 79: JFE Steel's Transition to Low-carbon Processes