Pro gre s s o f Th e Pr i o r i t y M e a s u re s i n ”J G P 2 0 2 0 ”

Progress of Medium-Term Management Plan “JGP2020”
Developing Foundations for Growth
To establish the ground to realize our growth in the “Next 10 Years”
FY2030I n d u s t r i a l M a c h i n e r y Pro d u c t s B u s i n e s s
Steel and Energy Produc ts Business

JGP2020
Apr. 2019
Absorption merger of
Nikko Information
System Co.

Apr. 2019
Acquisition of
GM Engineering Co.

2020
Absorption merger
with Meiki Co.
(Plan)

2018〜2020Investment for greater production capacity
at Hiroshima plant

Expanding business scale for film and sheet manufacturing equipment
In response to medium- to long-term expansion in demand mainly for manufacturing separator films, we reinforced
production capacity and established a structure for expanding the business scale.
In April 2018, we commenced a capital and business alliance with GM Engineering Co., Ltd., which possesses a strength
in medium to small sheet manufacturing equipment mainly for food use. In April 2019, we acquired additional shares of
GM Engineering and welcomed it as a subsidiary of the JSW Group. Through a synergistic effect with JSW’s strength inlarge film manufacturing equipment, we intend to promote rapid business expansion.

Enhancing Production Structure of Large Injection Molding Machines
New business, M&A〜JGP2017

Expansion of the existing businessIndustrial Machinery Products Business

Expansion of the business scales

Meiki Co., Ltd., a wholly owned subsidiary of the JSW Group, steadily engages in business centered around large injection molding machines for automobile-related products. In response to a trend toward the increasing use of plasticautomotive components, an expansion in demand is expected for large injection molding machines in the automobile
industry. To accommodate such expanding demand, we decided on a policy to absorb and merge Meiki on April 1,
2020. Taking this opportunity, we will reinforce production capacity through the optimal allocation of management
resources.

“Aggressive management”

Steel and Energy Products Business

Sowing and nurturing of seeds for
expansion of our business fields

Fostering new business

Strengthening competitiveness of clad steel plates and pipes
In step with an expansion in demand for natural gas, growth is anticipated for clad steel plates and pipes. To strengthen
competitiveness of our products, we are proceeding with capital investment over four years from fiscal 2018 (fiscal yearended March 31, 2019) to fiscal 2021 (fiscal year ending March 31, 2022).

Restructuring of theSecuring profitability in the current scaleContinuous profit making

production system

Exploration of the new opportunities

from the existing business

Apr. 2019
Cooperation with
Tsukishima Kikai Co.

Aug. 2019
Joint Venture withJX Nippon Mining &Metals

Apr. 2020
Establishment of new company
and integration of subsidiaries(Plan)

2018〜2021 Investment for clad steel business3 Basic Policies (Priority Issues) in “JGP2020”

GrowthIndustry Machinery
Products Business

RebirthSteel and Energy
Products Business

Ⅰ. Optimization of Management Resources and Strengthening of Alliances
Optimization through rearrangement of the resources→ Active investment for industry machinery product business, Rebuild of cost structure in the steel and energy
products business that suits the current sales scale
Expansion of the businesses through alliance and M&A→ Breaking free of adherence toward self-sufficient policies
Ⅱ. Strengthening After-Sales Services (Stock-Based Business)
Enhancement of service force mainly in industrial machinery→ Securing stable profitability, improvement of customer satisfaction
Strengthening customer relationship through service business→ Development of foundations for the next business
Ⅲ. Acceleration in Exploration and Development of New Businesses
Exploration of new businesses from the view point of mega trends
Fostering and commercialization in the 4 fields (aircrafts, hydrogen, crystals and thin films) + α

Revision of numerical targets in the JGP2020 medium-term management planDue to the drastic change in our business environment arising from the impact of U.S.-China trade frictions and other factors, we are revising
the numerical targets in the medium-term management plan (net sales of over ¥260.0 billion (US$2,343 million) and consolidated operating
income of ¥30.0 billion (US$270 million)). The new numerical targets will be disclosed as soon as possible after deliberate consideration.
We are certain, however, that our basic strategies are still effective, so we will maintain the measures for implementing the plan.

10Commencing cooperation in production activity with Tsukishima Kikai Co., Ltd.
Aimed at cooperation in production activity with Tsukishima, we transferred the manufacturing function of its Ichikawa
Factory to the No. 4 steel factory and other factories within our Muroran Plant. The Muroran Factory of Tsukishima Kikai
commenced operation in April 2019.

Establishing Muroran Copper Alloy, Co., Ltd., a joint venture to melt and cast copper alloys
In August 2019, Japan Steel Works, Ltd. and JX Nippon Mining & Metals Corporation established Muroran Copper Alloy,
Co., Ltd., a joint venture to melt and cast copper alloys. The establishment of the joint venture enables JSW to expand its
business in the high-performance metal materials field in addition to existing steel products and accelerate the rebuilding of the Steel and Energy Products Business.

Giving consideration into the establishment of a new company
To secure stable profitability at the current business composition and scale in the Steel and Energy Products Business,
we are under consideration for reorganizing the Steel and Energy Products Business throughout the entire JSW Groupand establishing a new company in April 2020.

Other Business
Strengthening the information technology function
Aiming to strengthen the function for cutting-edge information technology such as machine learning, we absorbed andmerged Nikko Information System Co., Ltd., our wholly owned subsidiary, on April 1, 2019. By keeping the informationsystem department within the same organization, we will strive to solidify the structure related to utilizing the latest information technologies such as the Internet of Things (IoT) and to further improve the value of our products and services.

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