JFE Holdings, Inc.
Financial Results Briefing for the Fiscal Year Ending March 2021
May 7, 2021

Presentation
Moderator: Ladies and gentlemen, we would now like to hold the Investors Meeting of JFE Holdings, Inc.
As previously announced, the investors' meeting will be divided into 2 parts. The first part of the presentation
will be an explanation of the full-year financial results for fiscal year 2020, including a question-and-answersession. This will be followed by an explanation of the Seventh Mid-term Management Plan and a questionand-answer session.
Mr. Kakigi, President, and Mr. Tanaka, Senior Vice President, are in attendance.
Mr. Tanaka, Senior Vice President, will now explain the financial results and business outlook announcedtoday.
Tanaka: My name is Tanaka. I would now like to explain the financial results based on the presentationmaterials posted on our website today. Now, let me begin.

1

First, here are the JFE Group's financial results for FY 2020.
As you can see from the figures here, in the first half of FY2020, we were in the red due to the impact of thespread of COVID-19 and other factors, but from the latter half of the first half of FY2020 onward, steel demand
and the steel market recovered, and we made efforts to improve profitability, which resulted in a profit in thesecond half of FY2020.
In the first half of FY2020 we posted a business loss of JPY114.3 billion, but in the second half of FY2020 weachieved a surplus of JPY101.4 billion. We experienced a great fluctuation of the JPY100 billion unit. Total
business profit for FY2020 was a deficit of JPY12.9 billion.
Similarly, we posted a segment loss of JPY25.4 billion, and loss attributable to owners of parent of JPY21.8
billion in FY 2020.
As you can see on the right side, C minus B is a comparison with the annual forecast announced in February
2021. Business profit had improved by about JPY20 billion from the previous forecast.

2The following table shows the results by segment.
The table shows revenue and segment profit by business segment. The improvement of approximately JPY20
billion in segment profit compared to the February 2021 forecast was due to the improvements in the steelbusiness, engineering business, and trading business.

3This is the status of cash flow.
We have improved our cash flow in line with the recovery in earnings and the progress in asset compression.
As a result, the interest-bearing debt as of the end of March 2021 was JPY1,806.1 billion, an improvement of
about JPY8 billion over the previous fiscal year.
As a result, the D/E ratio was 93.2%.
If you compare the amount of depreciation and amortization with the amount of investment, you will see thatthe amount of investment exceeded the amount of depreciation and amortization again this fiscal year. Thiswas covered by JPY180 billion in asset compression through the sale of cross-holding shares and land.
Incidentally, since the year before last, we have been saying that we will generate cash flow through asset
sales and asset compression. The total for FY 2019 and 2020 is JPY215 billion, which is an increase from theprevious forecast of around JPY200 billion.

4

Now, let's take a look at the financial results of JFE Steel.
First, let’s look at the non-consolidated crude steel production volume.
The production volume decreased by about 4 million tons compared to FY 2019 to 22.76 million tons. Theforecast was 22.7 million tons, which means that the volume of crude steel was almost in line with the forecast.
The ratio of exports was 42.3%, a slight increase compared to the previous fiscal year, but almost the samelevel.
The average sales price of steel was JPY74,800 per ton-shipment, a decrease of JPY4,000 compared to theprevious fiscal year.
As for the exchange rate, the actual result for the fiscal year under review was JPY105.8 per dollar, a yen
appreciation of about JPY3 compared to JPY109.1 per dollar in the previous fiscal year.

5Based on these factors, the analysis of the JPY14.6 billion increase in segment profit for FY2020 is as follows.
The increase of JPY1 billion was attributable to a slight increase in volume and mix. Sales prices and raw
materials contributed to an increase of JPY2.0 billion due to improved market conditions, mainly in exports.
In addition, there was an increase of JPY7.0 billion attributable to the valuation difference on inventories, etcetera, and this was due to foreign exchange translation differences as the yen weakened toward the end ofthe period.
In addition to this, improvements in the group companies, which is included in Others, were added, resulting
in a total improvement of JPY14.6 billion.

6

The following is a comparison with the previous year.
Segment loss for the previous fiscal year was JPY8.7 billion, and for the fiscal year under review was JPY65.4billion, a deterioration of JPY56.7 billion.
We achieved a cost reduction of JPY100 billion as planned.
On the other hand, in terms of volume and mix, profit decreased by JPY104 billion, mainly due to the decreasein crude steel volume.
Sales prices and raw materials in total contributed to an increase of JPY2 billion. While sales prices had anegative impact, raw materials had a positive one. As for raw materials, the price of iron ore has increased,
while the price of coking coal has decreased.
The inventory valuation difference, etc., is as shown on the slide. Other factors such as the significant
deterioration in the earnings of domestic and overseas group companies due to the impact of COVID-19, etcetera, resulted in a profit decline of JPY50 billion.

7

Next is JFE Engineering.
In FY 2020, orders received totaled JPY510.1 billion, and we have achieved our forecast of JPY500 billion forFY 2020. Segment profit was JPY24.0 billion, an increase of JPY2.0 billion from the forecast of JPY22.0 billion.
This was partly due to cost reductions.
In the previous fiscal year, orders received were in the JPY410 billion range due to fewer large-scale projects,
but the number has increased since then due to the receipt of orders for large-scale projects, mainly for publicworks in the environment and infrastructure.
As a result, segment profit increased by JPY900 million compared to the previous fiscal year, and we achieved
an increase for the third consecutive year.

8Next, I would like to talk about JFE Shoji's performance.
Revenue was JPY932.5 billion, and segment profit was JPY20 billion. This is also an increase of JPY3 billion overthe FY2020 forecast announced in February 2021.
We have been able to achieve an improvement of JPY3 billion due to factors such as a recovery in domestic
and overseas demand and a considerable increase in the steel market price in the United States.
Compared to the previous fiscal year, the first half of FY 2020 saw a significant drop in demand, resulting in a
YoY decrease of JPY7 billion in total.
The above are the results by segment, and next is the dividend.

9The dividend will be JPY10 per share, as announced in February 2021, and will be submitted to the general
meeting of shareholders.

10Next, I would like to explain our earnings forecast for FY2021.
In terms of the current business environment, steel demand is expected to continue its recovery both in Japanand overseas.
In Japan, a moderate recovery is expected to continue against the backdrop of a pickup in the economy.
Overseas demand in China will continue to be strong, and we expect demand to recover against the backdrop
of a recovery in the economies of various countries and regions.
On the other hand, with regard to the metal spread, we believe that the price of raw materials will remain at
a very high level due to the continuing strong demand for steel products in China.
On the other hand, steel prices, especially in overseas steel markets, are at a very high level. However, we donot see this continuing into the second half of the fiscal year, but rather a gradual adjustment.
In this context, we will make every effort to ensure that the rising cost of raw materials is reflected in steel
prices in a timely manner.

11

The annual forecast for FY2021 is JPY3.93 trillion in revenue and JPY200 billion in business profit.
Segment profit is expected to be JPY190 billion, including JPY140 billion in steel, JPY25 billion in engineering,and JPY27 billion in trading. We expect net profit to be JPY130 billion.
As you can see from the comparison with the results of the previous fiscal year, we expect a significant
improvement in our performance.

12

The following is the outlook for the steel business in FY 2021 and a breakdown of the increase or decrease inprofit and loss.
As shown in the upper part of this page, crude steel production is estimated to be approx. 26.5 million tons
per fiscal year. We also assume that the exchange rate will be JPY105 per dollar.
The forecast for the steel business segment for FY 2021 is a profit of JPY140 billion, an improvement of
JPY205.4 billion over the deficit of JPY65.4 billion in the previous fiscal year.
This includes JPY30 billion in cost reductions including the expected effects of new capital investments. As forthe volume and mix, the volume of crude steel will increase by about 4 million tons compared to the previous
fiscal year, which will result in an increase of JPY70 billion.
As for the sales and raw materials, it will make an contribution of JPY15 billion, due to the increase in market
conditions, especially for exports, in light of the fact that the market conditions for exports have been quite
good recently.
In addition, there will be an increase of JPY90 billion due to inventory valuation differences. The main factor
is that inventory valuation difference, which was negative JPY37 billion in the previous fiscal year, is expected
to be positive JPY76 billion this fiscal year due to an increase in the price of raw materials.
Due to other factors, profit will slightly increase by JPY0.4 billion, as we expect more than JPY20 billion ofimprovement in the profit of domestic and overseas group companies, while amortization expenses will also
increase by about JPY20 billion. The above is the Steel business.

13

Next is the engineering and trading businesses.
In the engineering business, we expect to receive orders of JPY550 billion in FY2021, which will be an increase
from FY2020. Segment profit is expected to be positive JPY25 billion.
In the Trading business, we expect to post a segment profit of JPY27.0 billion, an improvement of JPY7.0 billion
from the previous fiscal year, reflecting a recovery in activity levels and favorable market conditions both inJapan and overseas.
That is all about the financial results and the outlook.
[END]
This document does not purport to address the requirements of the Financial Instruments and Exchange Act.
It is the responsibility of the user of this document to determine the correctness and integrity of theinformation in regard to its use. The forecasts presented are prepared on the basis of information available
at the time of the briefing session and include uncertain factors. It is strongly recommended NOT to rely only
on the forecasts in this document when making investment decisions. In no respect will JFE Holdings, Inc.
incur any liability for any damage arising out of, resulting from, or in any way connected to the use of theinformation contained herein.

14