JFE : ’ Financial Results for Fiscal Year 2025 ended March 31, 2026 (140120260507518913)

- All financial information has been prepared in accordance with International Financial Reporting Standards (IFRS) -

(Note: The following is an English translation of an original Japanese document)

May 8, 2026

Official name: JFE Holdings, Inc.

Listings: Tokyo stock exchange

Code: 5411

English URL: https://www.jfe-holdings.co.jp/en

Representative: Yoshihisa Kitano, President and CEO

Contact: Tomoko Takami, Manager, Public Relations Section Investor Relations and Corporate Communications Department

Phone: +81-3-3597-3842

Annual shareholders meeting (planned): June 24, 2026

Dividend payment starting date: June 25, 2026

Scheduled date to submit securities report: June 19, 2026 Preparation of supplementary materials on results: Yes

Results briefing: Yes

(Figures are rounded down to the nearest million yen)

1. Consolidated Results for Fiscal 2025 (April 1, 2025 to March 31, 2026)

   1. Consolidated Operating Results (cumulative total)

      (Percentages indicate year on year change)

      	Revenue (millions of yen)	%	Business profit (millions of yen)	%	Profit before tax (millions of yen)	%	Profit (millions of yen)	%	Profit attributable to owners of parent (millions of yen)	%	Comprehensive income (millions of yen)	%
      FY 2025	4,539,270	(6.6)	135,385	0.0	87,417	(39.4)	74,032	(20.6)	70,165	(23.6)	154,969	12.5
      FY 2024	4,859,647	(6.1)	135,339	(54.6)	144,315	(46.2)	93,254	(53.6)	91,867	(53.5)	137,696	(52.3)

      	Basic earnings per share (yen)	Diluted earnings per share (yen)	Profit ratio to equity attributable to owners of parent (%)	Profit before tax ratio to total assets (%)	Business profit ratio to revenue (%)
      FY 2025	110.30	105.47	2.7	1.5	3.0
      FY 2024	144.43	138.24	3.7	2.5	2.8

      (Reference): Equity in earnings of affiliates: FY 2025: 54,537 million yen FY 2024: 29,133 million yen

      Note: Business profit is profit before tax excluding financial income and one-time items of a materially significant value.

   2. Consolidated Financial Position

      	Total assets (millions of yen)	Total equity (millions of yen)	Total equity attributable to owners of parent (millions of yen)	Total equity attributable to owners of parent (%)	Total equity attributable to owners of parent per share (yen)
      FY 2025	5,895,238	2,680,190	2,619,535	44.4	4,117.88
      FY 2024	5,647,637	2,586,868	2,529,578	44.8	3,976.84

   3. Consolidated Cash Flows

      	Cash flows from operating activities (millions of yen)	Cash flows from investing activities (millions of yen)	Cash flows from financing activities (millions of yen)	Cash and cash equivalents at FY end (millions of yen)
      FY 2025	379,081	(452,784)	61,681	167,807
      FY 2024	378,968	(283,179)	(157,435)	172,841

2. Dividends

   	Dividend per share (yen)					Total dividend payout (millions of yen)	Dividend payout ratio (consolidated, %)	Dividend ratio of equity attributable to owners of parent (consolidated, %)
   	Annual	End on 1st quarter	Interim	End on 3rd quarter	Yearend
   FY 2024	100.00	-	50.00	-	50.00	63,690	69.2	2.5
   FY 2025	80.00	-	40.00	-	40.00	50,977	72.5	2.0
   FY 2026 (forecast)	80.00	-	-	-	-		33.9

   The company's basic policy regarding dividends from retained earnings is to pay an interim and year-end dividend each year, but since the estimated interim dividend has not been determined at this time, the forecast is presented as a total.

3. Forecasts of Consolidated Financial Results in Fiscal 2026 (April 1, 2026 to March 31, 2027)

   (Percentages indicate year on year change)

   	Revenue (millions of yen)	%	Business profit (millions of yen)	%	Profit before tax (millions of yen)	%	Profit attributable to owners of parent (millions of yen)	%	Basic earnings per share (yen)
   FY 2026	4,800,000	5.7	215,000	58.8	190,000	117.3	150,000	113.8	235.80

   Notes

   1. Significant change in scope of consolidation: Yes

      1. New company: One (JSW JFE Kalinga Steel Limited*)

      2. Excluded company: None

         For details, please refer to page 15 of the attached materials, "3. Consolidated Financial Statements and Major Notes, (5) Notes to Consolidated Financial Statements, Additional Information."

         *JSW JFE Kalinga Steel Limited is an Equity-method associate (joint venture)

   2. Changes in accounting policies and accounting estimates

      1. Changes in the accounting policies required by IFRS: No

      2. Changes in the accounting policies other than 1) above: No

      3. Changes in accounting estimates: No

   3. Number of outstanding shares (common stock)

      1. Outstanding shares at the end of the term (including treasury stock) As of March 31, 2026: 639,438,399 shares

         As of March 31, 2025: 639,438,399 shares

      2. Treasury stock at the end of the term As of March 31, 2026: 3,302,081 shares

         As of March 31, 2025: 3,360,277 shares

      3. Average number of shares during the term

         Fiscal 2025: 636,124,444 shares

         Fiscal 2024: 636,048,712 shares

         This report is not subject to auditing by a certified public accountant or an audit corporation. Explanation of Appropriate Use of Results Forecasts, and Other Matters of Note

         1. Forecasts and other forward-looking statements herein are based on information available on the date of publication of this document as well as rational assumptions that we have made regarding certain factors. Actual results may vary significantly from these forecasts due to a wide range of circumstances. For a description of the results forecasts, see "1. Qualitative Information

            1. Outlook for Fiscal 2026" on Page 3 of the attachments.

         2. The supplementary financial data will be disclosed today via TDnet and published on our website.

         Attachments

         1. Qualitative Information 2

            1. Overview of Business Results 2

            2. Overview of Financial Position 3

            3. Overview of Cash Flow in Fiscal 2025 3

            4. Outlook for Fiscal 2026 3

         2. Basic Rationale for Selection of Accounting Standards 3

         3. Consolidated Financial Statements and Major Notes 4

            1. Consolidated Statement of Financial Position 4

            2. Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income 6

            3. Consolidated Statement of Changes in Equity 8

            4. Consolidated Statement of Cash Flow 10

            5. Notes to Consolidated Financial Statements 12

               Notes pertaining to the presumption of a going concern 12

               Segment information 12

               Per-share information 14

               Additional information 15

               Material subsequent events 15

         4. Supplementary Information 16

         1. ‌Qualitative Information

            1. ‌Overview of Business Results

               During the fiscal year under review, the Japanese and global economies showed signs of a gradual recovery, but they were affected by the slowdown of the Chinese economy and new U.S. trade policies. Furthermore, future economic prospects became more uncertain due to escalating tensions in the Middle East and other factors.

               Under these circumstances, the JFE Group implemented continuous cost reduction measures. As a result, business profit remained at the same level as in the previous fiscal year, despite sluggish domestic and overseas steel demand and weak conditions in the steel market. One-time factors such as inventory valuation adjustments also contributed to profit. However, net profit attributable to owners of the parent company decreased due to one-time factors, including a decline in gains from land sales. The operating results of each segment follow.

               In the steel business, experienced sluggish domestic and overseas demand and weak overseas steel market conditions, partly due to protectionist policies in various countries, including the United States. Consequently, consolidated crude steel production decreased to 22.55 million tons, and revenue decreased to 3,088.4 billion yen, reflecting lower steel prices and a decline in sales volume. Despite lower steel product prices and a decrease in sales volume, segment profit remained at the same level as in the previous fiscal year at 38.0 billion yen, driven by continuous cost-cutting initiatives and one-time factors, such as inventory valuation adjustments.

               In the engineering business, revenue increased to a new record of 599.7 billion yen, driven by the steady execution of projects under contract and corporate acquisitions. The value of new orders also reached a record high. Engineering segment profit increased to 23.9 billion yen, driven by the rise in revenue.

               In the trading business, annual consolidated revenue of 1,333 billion yen and segment profit of 40.2 billion yen were both down from the previous fiscal year. Steel trading declined due to ongoing weakness in domestic construction demand, the impact of various countries' trade policies, and weak conditions in the overall steel market.

               Consolidated revenue decreased to 4,539.2 billion yen, while business profit remained roughly unchanged at 135.3 billion yen. A loss of 23.1 billion yen was recorded as exceptional items due to the cost for promoting and developing land utilization of Keihin district, among other factors. This resulted in profit before taxes of 87.4 billion yen and net income attributable to the owners of the parent company of 70.1 billion yen.

               Note: Business profit is profit before tax, excluding financial income and one-time items of a materially significant value. It is a benchmark indicator of the company's consolidated earnings. The operating performance of each segment is presented in terms of segment profit, a measure including financial income in business profit. Exceptional items are one-time items of a materially significant value.

            2. ‌Overview of Financial Position

               Total assets at the end of fiscal 2025 (March 31, 2026) increased from a year earlier by 247.6 billion yen to 5,895.2 billion yen, primarily due to an increase in investments accounted for using equity method. Total liabilities increased by

               154.3 billion yen to nearly 3,215 billion yen, primarily due to increases in bonds payable, borrowings and lease obligations. Total equity increased by 93.3 billion yen to nearly 2,680.1 billion yen, primarily due to an increase in other components of equity.

            3. ‌Overview of Cash Flow in Fiscal 2025

               A cash inflow of 379.0 billion yen from operating activities and a cash outflow of 452.7 billion yen from investing activities-mainly for the purchase of tangible and intangible assets, as well as investment property-resulted in a free cash outflow of 73.7 billion yen.

               Cash flows from financing activities resulted in an inflow of 61.6 billion yen, primarily due to long-term borrowings.

               Consequently, the balance of interest-bearing debt at the end of the current fiscal year increased from a year earlier by 192.9 billion yen to 1,959.3 billion yen, and the balance of cash and cash equivalents decreased by 5.0 billion yen to

               167.8 billion yen.

               Note: Interest-bearing liabilities include bonds payable, borrowings, and lease obligations.

            4. ‌Outlook for Fiscal 2026

            In the steel business, the Japanese demand for steel products overall will remain flat from this fiscal year. In the construction sector, we expect steel demand to remain sluggish due to rising construction costs and labor shortages. In the automotive sector, we anticipate demand to remain unchanged. Overseas, although there are signs that the market has bottomed out in the near term, the pattern in China of sluggish internal demand, high production levels and increased exports has not changed significantly. Furthermore, as protectionist policies progress in the United States and other countries, the supply-demand environment centered on the Asian region will remain challenging. In this environment, JFE Steel's standalone crude steel production is forecast to be approximately 21.5 million tons, similar to fiscal 2025. While soaring prices of key raw materials will put pressure on profits, segment profit is expected to exceed the current fiscal year level and reach 100 billion yen, driven by initiatives such as raising steel product prices, expanding the ratio of high-value-added products, reducing costs, and one-time factors such as inventory valuation adjustments.

            However, the impact of the situation in the Middle East is not factored into this forecast due to the difficulty of predicting its effect on business performance. Assuming a crude oil price of $100 per barrel (WTI basis), we anticipate a monthly impact of approximately 10 billion yen due to cost increases resulting from rising bunker, energy, materials and logistics costs. In addition, the impact of this situation-such as rising energy prices and maritime transport costs, as well as disruptions in the procurement of various materials derived from crude oil and naphtha-has increased the risk of a decline in steel demand. Going forward, the company will closely monitor these developments.

            In the engineering business, we expect segment profit to remain at the current level of 25 billion yen, supported by our steady execution of projects under contract, primarily in the offshore wind monopile sector.

            In the trading business, we anticipate improved earnings due to the recovery of operations in the North America and rising domestic steel prices toward the second half of the fiscal year. Consequently, we project that segment profit will rise to 45 billion yen.

            Full-year consolidated business profit is forecast at 215 billion yen, but note that this does not reflect the impact of the situation in the Middle East. Nevertheless, each operating company will continue to strive for improved earnings.

         2. ‌Basic Rationale for Selection of Accounting Standards

            JFE voluntarily adopted IFRS starting with full-year results for the fiscal year that ended on March 31, 2019. Since JFE does business globally, adopting IFRS helps to improve the international comparability of its financial statements in capital markets and improve group management based on standardized accounting methods.

         3. ‌Consolidated Financial Statements and Major Notes

         1. ‌Consolidated Statement of Financial Position

            		(millions of yen)
            	As of March 31, 2025	As of March 31, 2026
            Assets
            Current assets
            Cash and cash equivalents	172,841	167,807
            Trade and other receivables	692,985	668,994
            Contract assets	155,257	155,769
            Inventories	1,228,540	1,188,142
            Income taxes receivable	6,257	14,605
            Other financial assets	22,116	22,956
            Other current assets	90,786	86,462
            Total current assets	2,368,785	2,304,738
            Non-current assets
            Property, plant and equipment	1,964,041	2,039,974
            Goodwill	33,999	31,348
            Intangible assets	201,002	208,881
            Right-of-use asset	93,447	111,370
            Investment property	54,126	53,317
            Investments accounted for using equity method	636,972	816,153
            Retirement benefit asset	27,432	35,794
            Deferred tax assets	56,432	44,072
            Other financial assets	190,524	225,997
            Other non-current assets	20,873	23,590
            Total non-current assets	3,278,851	3,590,500
            Total assets	5,647,637	5,895,238

            		(millions of yen)
            	As of March 31, 2025	As of March 31, 2026
            Liabilities and equity
            Liabilities
            Current liabilities
            Trade and other payables	595,954	571,142
            Bonds payable, borrowings, and lease obligations	395,415	443,307
            Contract liabilities	47,591	38,964
            Income taxes payable, etc.	29,849	15,096
            Provisions	10,410	11,906
            Other financial liabilities	148,830	131,952
            Other current liabilities	245,661	277,021
            Total current liabilities	1,473,713	1,489,391
            Non-current liabilities
            Bonds payable, borrowings, and lease obligations	1,371,035	1,516,078
            Retirement benefit liability	103,092	85,930
            Provisions	29,355	23,185
            Deferred tax liabilities	15,430	10,023
            Other financial liabilities	40,098	54,516
            Other non-current liabilities	28,042	35,923
            Total non-current liabilities	1,587,055	1,725,657
            Total liabilities	3,060,768	3,215,048
            Equity
            Share capital	171,310	171,310
            Capital surplus	579,514	579,387
            Retained earnings	1,607,951	1,646,021
            Treasury shares	(13,736)	(12,608)
            Other components of equity	184,539	235,423
            Total equity attributable to owners of parent	2,529,578	2,619,535
            Non-controlling interests	57,289	60,654
            Total equity	2,586,868	2,680,190
            Total liabilities and equity	5,647,637	5,895,238

         2. ‌Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income

            ‌Consolidated Statement of Profit or Loss

            		(millions of yen)
            	Fiscal 2024 (April 1, 2024 - March 31, 2025)	Fiscal 2025 (April 1, 2025 - March 31, 2026)
            Revenue	4,859,647	4,539,270
            Cost of sales	(4,326,565)	(4,013,367)
            Gross profit	533,081	525,903
            Selling, general and administrative expenses	(409,375)	(431,062)
            Share of profit of investments accounted for using equity method	29,133	54,537
            Other income	30,614	28,621
            Other expenses	(48,115)	(42,614)
            Business profit	135,339	135,385
            Gain on sales of land	86,622	3,202
            Cost for promoting and developing land utilization of Keihin district	(14,607)	(12,176)
            Impairment losses	(25,194)	(8,743)
            Cost for removal in connection with construction of Green Transformation (GX) facilities	-	(5,464)
            Loss relating to loss of control over subsidiaries	(13,129)	-
            PCB disposal costs	(3,962)	-
            Operating profit	165,068	112,203
            Finance income	5,714	5,588
            Finance costs	(26,467)	(30,373)
            Profit before tax	144,315	87,417
            Income tax expense	(51,060)	(13,385)
            Profit	93,254	74,032
            Profit attributable to
            Owners of parent	91,867	70,165
            Non-controlling interests	1,386	3,867
            Profit	93,254	74,032
            Earnings per share
            Basic earnings per share (yen)	144.43	110.30
            Diluted earnings per share (yen)	138.24	105.47

            ‌Consolidated Statement of Comprehensive Income

            			(millions of yen)
            	Fiscal 2024 (April 1, 2024 - March 31, 2025)		Fiscal 2025 (April 1, 2025 - March 31, 2026)
            Profit	93,254		74,032
            Other comprehensive income
            Items that will not be reclassified to profit or loss
            Remeasurements of defined benefit plans	6,899		21,580
            Net change in fair value of equity instruments designated as measured at fair value through other comprehensive income	(6,570)		17,369
            Share of other comprehensive income of investments accounted for using equity method	11,729		(1,935)
            Total of items that will not be reclassified to profit or loss	12,059		37,014
            Items that may be reclassified to profit or loss
            Exchange differences on translation of foreign operations	10,041		27,430
            Effective portion of cash flow hedges	1,725		4,120
            Share of other comprehensive income of investments accounted for using equity method	20,615		12,372
            Total of items that may be reclassified to profit or loss	32,382		43,922
            Total other comprehensive income	44,442		80,937
            Comprehensive income	137,696		154,969
            Comprehensive income attributable to
            Owners of parent	135,807		148,830
            Non-controlling interests	1,888		6,139
            Comprehensive income	137,696		154,969

         3. ‌Consolidated Statement of Changes in Equity

            ‌Fiscal 2024 (April 1, 2024 - March 31, 2025)

            (millions of yen)
            Equity attributable to owners of parent
            Other components of equity
            		Share capital	Capital surplus	Retained earnings	Treasury shares	Share acquisition rights	Remeasurements of defined benefit plans	Net change in fair value of equity instruments designated as measured at fair value through other comprehensive income
            Balance as of April 1, 2024		171,310	587,266	1,570,027	(14,938)	3,081	-	48,444
            Profit		-	-	91,867	-	-	-	-
            Other comprehensive income		-	-	-	-	-	8,934	3,071
            Comprehensive income		-	-	91,867	-	-	8,934	3,071
            Purchase of treasury shares		-	-	-	(970)	-	-	-
            Disposal of treasury shares		-	(924)	-	1,835	-	-	-
            Dividends		-	-	(63,672)	-	-	-	-
            Share-based payment transactions		-	(193)	-	336	-	-	-
            Change in scope of consolidation		-	-	-	-	-	-	-
            Changes in ownership interest in subsidiaries		-	379	-	-	-	-	-
            Put options granted to non-controlling interests		-	(7,014)	-	-	-	-	-
            Transfer from other components of equity to retained earnings		-	-	9,728	-	-	(8,934)	(793)
            Transfers to non-financial assets		-	-	-	-	-	-	-
            Other		-	-	-	-	-	-	-
            Total transactions with owners		-	(7,752)	(53,944)	1,201	-	(8,934)	(793)
            Balance as of March 31, 2025		171,310	579,514	1,607,951	(13,736)	3,081	-	50,722

            Equity attributable to owners of parent
            	Other components of equity						Non-controlling interests
            	Exchange differences on translation of foreign operations		Effective portion of cash flow hedges						Total equity
            					Total
            				Total
            Balance as of April 1, 2024	96,035		2,900	150,461	2,464,128		74,392		2,538,521
            Profit	-		-	-	91,867		1,386		93,254
            Other comprehensive income	27,581		4,352	43,939	43,939		502		44,442
            Comprehensive income	27,581		4,352	43,939	135,807		1,888		137,696
            Purchase of treasury shares	-		-	-	(970)		-		(970)
            Disposal of treasury shares	-		-	-	911		-		911
            Dividends	-		-	-	(63,672)		(1,207)		(64,880)
            Share-based payment transactions	-		-	-	143		-		143
            Change in scope of consolidation	-		-	-	-		(18,741)		(18,741)
            Changes in ownership interest in subsidiaries	-		-	-	379		(69)		309
            Put options granted to non-controlling interests	-		-	-	(7,014)		-		(7,014)
            Transfer from other components of equity to retained earnings	-		-	(9,728)	-		-		-
            Transfers to non-financial assets	-		(133)	(133)	(133)		-		(133)
            Other	-		-	-	-		1,027		1,027
            Total transactions with owners	-		(133)	(9,862)	(70,356)		(18,991)		(89,348)
            Balance as of March 31, 2025	123,616		7,118	184,539	2,529,578		57,289		2,586,868

            Equity attributable to owners of parent
            	Other components of equity				Non-controlling interests
            	Exchange differences on translation of foreign operations	Effective portion of cash flow hedges				Total equity
            			Total	Total
            Balance as of April 1, 2025	123,616	7,118	184,539	2,529,578	57,289	2,586,868
            Profit	-	-	-	70,165	3,867	74,032
            Other comprehensive income	30,960	12,059	78,665	78,665	2,271	80,937
            Comprehensive income	30,960	12,059	78,665	148,830	6,139	154,969
            Purchase of treasury shares	-	-	-	(655)	-	(655)
            Disposal of treasury shares	-	-	-	609	-	609
            Dividends	-	-	-	(57,334)	(1,834)	(59,168)
            Share-based payment transactions	-	-	-	176	-	176
            Change in scope of consolidation	-	-	-	-	16	16
            Changes in ownership interest in subsidiaries	-	-	-	870	(760)	110
            Transfer from other components of equity to retained earnings	-	-	(25,239)	-	-	-
            Transfers to non-financial assets	-	(2,541)	(2,541)	(2,541)	-	(2,541)
            Other	-	-	-	-	(195)	(195)
            Total transactions with owners	-	(2,541)	(27,780)	(58,874)	(2,774)	(61,648)
            Balance as of March 31, 2026	154,577	16,636	235,423	2,619,535	60,654	2,680,190

            ‌Fiscal 2025 (April 1, 2025 - March 31, 2026)

            (millions of yen)
            Equity attributable to owners of parent
            Other components of equity
            		Share capital	Capital surplus	Retained earnings	Treasury shares	Share acquisition rights	Remeasurements of defined benefit plans	Net change in fair value of equity instruments designated as measured at fair value through other comprehensive income
            Balance as of April 1, 2025		171,310	579,514	1,607,951	(13,736)	3,081	-	50,722
            Profit		-	-	70,165	-	-	-	-
            Other comprehensive income		-	-	-	-	-	22,232	13,412
            Comprehensive income		-	-	70,165	-	-	22,232	13,412
            Purchase of treasury shares		-	-	-	(655)	-	-	-
            Disposal of treasury shares		-	(979)	-	1,589	-	-	-
            Dividends		-	-	(57,334)	-	-	-	-
            Share-based payment transactions		-	(18)	-	194	-	-	-
            Change in scope of consolidation		-	-	-	-	-	-	-
            Changes in ownership interest in subsidiaries		-	870	-	-	-	-	-
            Transfer from other components of equity to retained earnings		-	-	25,239	-	-	(22,232)	(3,006)
            Transfers to non-financial assets		-	-	-	-	-	-	-
            Other		-	-	-	-	-	-	-
            Total transactions with owners		-	(126)	(32,094)	1,128	-	(22,232)	(3,006)
            Balance as of March 31, 2026		171,310	579,387	1,646,021	(12,608)	3,081	-	61,128

         4. Consolidated Statement of Cash Flow

            			(millions of yen)
            	Fiscal 2024 (April 1, 2024 - March 31, 2025)		Fiscal 2025 (April 1, 2025 - March 31, 2026)
            Cash flows from operating activities
            Profit before tax	144,315		87,417
            Depreciation and amortization	257,638		274,292
            Increase (decrease) in allowance	1,684		(4,388)
            Interest and dividend income	(9,312)		(9,619)
            Interest expenses	24,064		28,125
            Share of loss (profit) of investments accounted for using equity method	(29,133)		(54,537)
            Decrease (increase) in trade and other receivables	55,868		31,436
            Decrease (increase) in inventories	123,540		45,815
            Increase (decrease) in trade and other payables	(66,022)		(35,516)
            Other	(80,270)		61,267
            Subtotal	422,372		424,293
            Interest and dividends received	28,019		30,359
            Interest paid	(21,916)		(26,071)
            Income taxes refund (paid)	(49,507)		(49,499)
            Net cash provided by (used in) operating activities	378,968		379,081
            Cash flows from investing activities
            Purchase of property, plant and equipment, intangible assets, and investment property	(279,417)		(321,720)
            Proceeds from sale of property, plant and equipment, intangible assets, and investment property	91,406		4,777
            Purchase of investments	(81,242)		(148,877)
            Proceeds from sale of investments	3,464		15,339
            Other	(17,390)		(2,302)
            Net cash provided by (used in) investing activities	(283,179)		(452,784)

            			(millions of yen)
            	Fiscal 2024 (April 1, 2024 - March 31, 2025)		Fiscal 2025 (April 1, 2025 - March 31, 2026)
            Cash flows from financing activities
            Net increase (decrease) in short-term borrowings	(29,170)		61,995
            Increase (decrease) in commercial papers	17,995		15,977
            Proceeds from long-term borrowings	145,161		214,071
            Repayments of long-term borrowings	(158,292)		(142,098)
            Proceeds from issuance of bonds	30,000		70,000
            Payments for redemption of bonds	(60,000)		(50,000)
            Payments for purchase of treasury shares	(62)		(655)
            Proceeds from disposal of treasury shares	909		605
            Dividends paid to owners of parent	(63,672)		(57,334)
            Other	(40,304)		(50,880)
            Net cash provided by (used in) financing activities	(157,435)		61,681
            Effect of exchange rate change on cash and cash equivalents	(8,590)		6,987
            Net increase (decrease) in cash and cash equivalents	(70,237)		(5,034)
            Cash and cash equivalents at beginning of period	243,079		172,841
            Cash and cash equivalents at end of period	172,841		167,807

         5. ‌Notes to Consolidated Financial Statements

            ‌Notes pertaining to the presumption of a going concern

            There is no item for this period.

            ‌Segment information

            1. Overview of reportable segments

               The Group organized under JFE Holdings executed commercial activities through three operating companies-JFE Steel Corporation, JFE Engineering Corporation and JFE Shoji Corporation-in accordance with the characteristics of their respective businesses. Consolidated reporting segments, one for each operating company, were characterized by their constituent products and services.

               Each segment had its own respective products and services. The steel business produced and sold various steel products, processed steel products and raw materials, and provided transportation and other related businesses such as facility maintenance and construction. The engineering business handled engineering for steel structures, industrial machines, energy and the environment, recycling and electricity retailing. The trading business purchased, processed and distributed steel products, raw materials for steel production, nonferrous metal products, and food, etc.

            2. Information on reportable segments

               The Group assesses segment performance on the basis of segment profit. Segment profit is profit before tax excluding one-time items of a materially significant value.

               Intersegment transactions are based on market prices and the like.

               Fiscal 2024 (April 1, 2024 to March 31, 2025)

               (millions of yen)

               	Steel	Engineering	Trading	Total	Adjustments1	Amount recorded in consolidated financial statements
               Revenue
               Revenue from external customers	3,007,924	554,156	1,297,566	4,859,647	-	4,859,647
               Intersegment revenue	357,266	15,659	140,993	513,919	(513,919)	-
               Total	3,365,191	569,815	1,438,559	5,373,566	(513,919)	4,859,647
               Segment profit	36,385	19,386	47,971	103,743	10,842	114,586
               Gain on sales of land						86,622
               Impairment losses						(25,194)
               Cost for promoting and developing land utilization of Keihin district						(14,607)
               Loss relating to loss of control over subsidiaries						(13,129)
               PCB disposal costs						(3,962)
               Profit before tax						144,315

               Segment assets	4,547,582	592,434	1,055,438	6,195,455	(547,818)	5,647,637
               Other items
               Depreciation and amortization	220,822	19,314	19,123	259,260	(1,622)	257,638
               Impairment losses	(20,013)	(3,389)	(1,681)	(25,084)	(110)	(25,194)
               Finance income	3,690	550	2,198	6,438	(724)	5,714
               Finance costs	(17,780)	(1,145)	(8,531)	(27,457)	989	(26,467)
               Share of profit (loss) of investments accounted for using equity method	16,133	2,677	991	19,803	9,330	29,133
               Investments accounted for using equity method	537,033	48,305	25,313	610,652	26,319	636,972
               Capital expenditures	266,499	27,066	24,911	318,477	(3,651)	314,826

               1 Adjustments are as follows.

               1. Adjustments to segment profit include corporate profit not allocated to a reportable segment: 60,005 million yen, elimination of dividend income from each reportable segment: (58,706) million yen, and share of profit of investments accounted for using equity method related to Japan Marine United Corporation: 6,986 million yen; elimination of other intersegment transactions: 2,556 million yen. Corporate profit is profit of the Company.

               2. Adjustments to segment assets: Corporate assets not allocated to a reportable segment: 55,944 million yen and elimination of intersegment receivables and payables, etc.: (603,762) million yen. Corporate assets are assets of the Company.

         Fiscal 2025 (April 1, 2025 to March 31, 2026)

         (millions of yen)

         	Steel	Engineering	Trading	Total	Adjustments1	Amount recorded in consolidated financial statements
         Revenue
         Revenue from external customers	2,756,616	583,657	1,198,996	4,539,270	-	4,539,270
         Intersegment revenue	331,814	16,115	134,060	481,990	(481,990)	-
         Total	3,088,430	599,773	1,333,057	5,021,261	(481,990)	4,539,270
         Segment profit	38,022	23,972	40,202	102,197	8,402	110,599
         Gain on sales of land						3,202
         Cost for promoting and developing land utilization of Keihin district						(12,176)
         Impairment losses						(8,743)
         Cost for removal in connection with construction of Green Transformation (GX) facilities						(5,464)
         Profit before tax						87,417

         Segment assets	4,780,920	627,896	1,072,891	6,481,708	(586,469)	5,895,238
         Other items
         Depreciation and amortization	233,602	22,905	19,902	276,410	(2,118)	274,292
         Impairment losses	(6,699)	(767)	(1,276)	(8,743)	-	(8,743)
         Finance income	4,189	781	2,139	7,110	(1,522)	5,588
         Finance costs	(22,771)	(1,881)	(7,756)	(32,410)	2,037	(30,373)
         Share of profit (loss) of investments accounted for using equity method	45,717	1,856	(458)	47,115	7,421	54,537
         Investments accounted for using equity method	708,583	56,024	25,653	790,261	25,892	816,153
         Capital expenditures	333,989	23,928	27,430	385,347	(5,439)	379,908

         1 Adjustments are as follows.

         1. Adjustments to segment profit include corporate profit not allocated to a reportable segment: 26,395 million yen, elimination of dividend income from each reportable segment: (25,006) million yen, and share of profit of investments accounted for using equity method related to Japan Marine United Corporation: 6,607 million yen; elimination of other intersegment transactions: 405 million yen. Corporate profit is profit of the Company.

         2. Adjustments to segment assets: Corporate assets not allocated to a reportable segment: 42,183 million yen and elimination of intersegment receivables and payables, etc.: (628,652) million yen. Corporate assets are assets of the Company.

         ‌Per-share information

         1. Basic earnings per share and diluted earnings per share

            	Fiscal 2024 (April 1, 2024 - March 31, 2025)	Fiscal 2025 (April 1, 2025 - March 31, 2026)
            Basic profit per share (yen)	144.43	110.30
            Diluted profit per share (yen)	138.24	105.47

         2. Basis for calculation of basic earnings per share and diluted earnings per share

         	Fiscal 2024 (April 1, 2024 - March 31, 2025	Fiscal 2025 (April 1, 2025 - March 31, 2026
         Profit attributable to owners of the parent company (millions of yen)	91,867	70,165
         Amount not attributable to common shareholders of the parent company (millions of yen)	-	-
         Profit used in calculation of basic earnings per share (millions of yen)	91,867	70,165
         Profit adjustments (millions of yen)	430	430
         Profit used in calculation of diluted earnings per share (millions of yen)	92,298	70,595
         Weighted average number of common shares used in calculation of basic earnings per share (thousand shares)	636,048	636,124
         Impact of dilutive potential common shares
         Share-based payments (thousand shares)	403	350
         Convertible bond (thousand shares)	31,237	32,893
         Weighted average number of common shares used in calculation of diluted earnings per share (thousand shares)	667,689	669,367

         Note: Company shares held in trust accounts for employee stock ownership plans are included in treasury shares, which are excluded from the calculation of the weighted average number of shares used in the calculation of basic earnings per share. The weighted average number of treasury shares excluded from the calculation of basic earnings per share for the previous and current consolidated fiscal years are about 686,000 and about 886,000, respectively.

         Additional information

         JFE Holdings, Inc. and its consolidated subsidiary JFE Steel Corporation resolved at their respective board meetings on December 3, 2025 and November 25, 2025 to an equity investment in Bhushan Power and Steel Limited (BPSL), a subsidiary of JSW Steel Limited (JSW), and to enter into a joint venture with JSW. The investment based on this resolution is carried out in two tranches through JSW Kalinga Steel Limited (renamed JSW JFE Kalinga Steel Limited on April 17, 2026).

         BPSL owns an iron ore mine and integrated steelworks in eastern India. Mainly producing steel coils and sheets, bars, and wire rods, BPSL is a cost-competitive steel company with a wide sales network primarily in eastern and northern India. The company's integrated steelworks plans to expand crude steel production capacity to 10 million tons by 2030, and potentially to 15 million tons thereafter, aiming to become one of the largest integrated steelworks in India.

         The formation of the joint venture was completed on March 30, 2026, and JSW JFE Steel Limited (hereinafter "JJSL") was established. JJSL will be positioned as the third integrated steelworks of JFE Steel Corporation, in addition to the company's East Japan and West Japan works, and is expected to contribute to increased earnings as an overseas business.

         BPSL Overview

         Location: Sambalpur, Odisha, India

         Annual Capacity: 4.5 million tons of crude steel

         Products: Hot-rolled steel coils and sheets, cold-rolled steel coils and sheets, bars, wire rods, and steel pipes FY2024 Sales (April 2024 - Mar 2025) : INR 214.4 billion (approx. JPY 360 billion)

         Joint Venture Overview

         Investment by JFE: INR 157.5 billion (approx. JPY 270 billion) Ownership: JFE Steel 50% and JSW Steel 50%

         Method of Share Acquisition

         Tranche 1: 25% stake for INR 78.75 billion (approx. 135.0 billion yen), completed in March 2026

         Tranche 2: 25% stake for INR 78.75 billion (approx. 135.0 billion yen), to be completed around June 2026

         ‌Material subsequent events

         There is no item for this period.

4. ‌Supplementary information

1. Consolidated financial performance

   		FY 2024		FY 2025		Change	Percentage change		FY 2026 Forecast
   		Full year		Full year		Full year	Full year		Full year
   		(billions of yen)		(billions of yen)		(billions of yen)	(%)		(billions of yen)
   	Steel Business	3,365.1		3,088.4		(276.7)	(8.2)		3,280.0
   	Engineering Business	569.8		599.7		29.9	5.3		620.0
   	Trading Business	1,438.5		1,333.0		(105.5)	(7.3)		1,400.0
   	Adjustments	(513.9)		(481.9)		32.0	-		(500.0)
   Revenue		4,859.6		4,539.2		(320.4)	(6.6)		4,800.0
   Business profit 1 A		135.3		135.3		0.0	0.0		215.0
   Finance income / costs B		(20.7)		(24.7)		(4.0)	-		(40.0)
   Segment Profit
   	Steel Business	36.3		38.0		1.7	4.5		100.0
   	Engineering Business	19.3		23.9		4.6	23.7		25.0
   	Trading Business	47.9		40.2		(7.7)	(16.2)		45.0
   	Adjustments	10.8		8.4		(2.4)	-		5.0
   Total A+B		114.5		110.5		(4.0)	(3.5)		175.0
   Exceptional Items 2		29.7		(23.1)		(52.8)	-		15.0
   Profit before tax		144.3		87.4		(56.9)	(39.4)		190.0
   Tax Expense and Profit (Loss) Attributable to Non-controlling Interests		(52.4)		(17.2)		35.2	-		(40.0)
   Profit Attributable to Owners of Parent		91.8		70.1		(21.7)	(23.6)		150.0

   1 Business profit: Profit that excludes financial income and exceptional items from profit before tax. It is a benchmark indicator of the company's consolidated earnings.

   2 Exceptional Items: One-time items of a materially significant value.

2. Consolidated Financial Indices

   	Fiscal 2024	Fiscal 2025	Change
   Return on Sales (ROS) 1	2.8%	3.0%	0.2%
   Return on Assets (ROA) 2	2.4%	2.3%	(0.1%)
   Return on Equity (ROE) 3	3.7%	2.7%	(1.0%)
   EBITDA 4	392.9 billion yen	409.5 billion yen	16.6 billion yen
   Interest-bearing debt outstanding	1,766.4 billion yen	1,959.3 billion yen	192.9 billion yen
   Debt / EBITDA multiple 5	4.5x	4.8x	0.3x
   Equity attributable to owners of parent	2,529.5 billion yen	2,619.5 billion yen	90.0 billion yen
   D/E Ratio6	54.3%	59.4%	5.1%

   1 ROS = Business profit / Revenue

   2 ROA = Business profit / Total assets

   3 ROE = Profit attributable to owners of parent / Equity attributable to owners of parent

   4 EBITDA = Business profit + Depreciation and amortization

   5 Debt / EBITDA multiple = Interest-bearing debt outstanding / EBITDA

   6 D/E ratio = Debt outstanding / Equity attributable to owners of parent. For debt having a capital component*, a portion of its issue price is deemed to be capital, as assessed by rating agencies.

   * Debt having a capital component (subordinated loans and bonds)

   Borrowing Execution Date (or Bond Issuance Date)	Amount Borrowed (or Amount of Bond)	Assessment of Equity Content	Amount Deemed to be Capital
   June 30, 2016	167.5 billion yen	50%	83.8 billion yen
   March 19, 2018	100.0 billion yen	50%	50.0 billion yen
   June 10, 2021	35.0 billion yen	50%	17.5 billion yen
   March 20, 2023	205.0 billion yen	50%	102.5 billion yen

3. Crude Steel Production (JFE Steel) (million tons)

   		1Q	2Q	1H	3Q	4Q	2H	Full year
   Fiscal 2024	Non-consolidated Consolidated	5.48	5.55	11.03	5.53	5.39	10.91	21.95
   		5.80	5.89	11.69	5.83	5.67	11.50	23.20
   Fiscal 2025	Non-consolidated Consolidated	5.28	5.52	10.80	5.32	5.25	10.57	21.37
   		5.61	5.81	11.42	5.59	5.54	11.13	22.55

4. Shipments (JFE Steel on non-consolidated basis) (million tons)

   	1Q	2Q	1H	3Q	4Q	2H	Full year
   Fiscal 2024	4.70	4.96	9.66	4.87	4.84	9.71	19.36
   Fiscal 2025	4.71	4.82	9.53	4.72	4.61	9.33	18.86

5. Export Ratio on Value Basis (JFE Steel on non-consolidated basis) (%)

   	1Q	2Q	1H	3Q	4Q	2H	Full year
   Fiscal 2024	40.6	44.2	42.4	40.0	41.9	40.9	41.7
   Fiscal 2025	39.9	42.8	41.3	40.3	40.1	40.2	40.8

6. Foreign Exchange Rate (Yen/US dollar) (JPY/USD)

   	1Q	2Q	1H	3Q	4Q	2H	Full year
   Fiscal 2024	155.0	152.8	153.9	149.0	154.1	151.6	152.7
   Fiscal 2025	145.3	147.0	146.2	153.2	155.3	154.3	150.2

7. Average Selling Price (JFE Steel on non-consolidated basis) (thousands of yen/ton)

   	1Q	2Q	1H	3Q	4Q	2H	Full year
   Fiscal 2024	139.2	131.5	135.2	127.0	124.0	125.5	130.3
   Fiscal 2025	120.4	119.2	119.8	120.0	123.4	121.7	120.7

8. Engineering Business Orders (including intersegment transactions)

   1. Actual orders received

      (billions of yen)

      Field	Fiscal 2024	Fiscal 2025	Change
      Waste to Resource Carbon Neutral Core Infrastructure	271.2 179.1 129.2	385.4 321.7 128.9	114.2 142.6 (0.3)
      Total	579.5	836.1	256.6

   2. Order Backlog

      (billions of yen)

      End of Fiscal 2024	End of Fiscal 2025	Change
      994.4	1,223.5	229.1

      Note: Starting from fiscal year 2025, the first year of our Eighth Medium-term Business Plan, we have consolidated our engineering business fields from four to three. In line with this change, energy-related products have been reclassified from Core Infrastructure to Carbon Neutral. The results for fiscal year 2024 are presented based on the figures after this consolidation.

9. Capital Investment and Depreciation and Amortization (JFE Holdings on consolidated basis)

   (billions of yen)

   	Fiscal 2024	Fiscal 2025	(on construction basis)
   Capital Investment	314.8	379.9
   Depreciation & Amortization	257.6	274.2

   a. Fiscal 2025, compared to Fiscal 2024 -4.0 billion yen: 114.5 billion yen in fiscal 2024 → 110.5 billion yen in fiscal 2025
   	(billions of yen)
   	Change
   Steel Business
   - Cost	27.0	Operational improvement, etc.
   - Volume and mix	(12.0)	Crude steel production: 21.95 → 21.37 million tons, expansion of high-value-added products (such as electric steel and heavy plates for wind power applications)
   - Spreads*	(78.0)	Deterioration in domestic and overseas steel market conditions, negative impact of raw material price fluctuations and timing differences in adjustments for selling prices, deterioration in export profitability due to a year-on-year yen appreciation
   - Inventory valuation, etc.	70.0	Inventory valuation, etc. -13.0, carry over 75.0, foreign exchange valuation 8.0
   - Others	(5.3)	Group companies 29.0 (domestic 8.0, overseas 21.0), others -34.3 (depreciation, interest expense, construction timing differences, etc.)
   - Total	1.7
   Engineering and Trading businesses, and Adjustments	(5.7)
   b. Fiscal 2025, compared to previous forecast 0.5 billion yen: 110.0 billion yen (previous forecast) → 110.5 billion yen in fiscal 2025
   	(billions of yen)
   	Change
   Steel Business
   - Cost	0.0
   - Volume and mix	(3.0)	Crude steel production: approx. 21.50 → 21.37 million tons
   - Spreads*	0.0
   - Inventory valuation, etc.	(1.0)	Inventory valuation -1.0, carry over -3.0, foreign exchange valuation 3.0
   - Others	2.0	Group companies 1.0
   - Total	(2.0)
   Engineering and Trading Business, and Adjustments	2.5

10. Breakdown of Changes in Segment Profit

*Spreads include various prices (metals, energy, materials, logistics, labor costs, foreign exchange effects, etc.)

###