JFE Holdings’ Financial Results for First Halfof Fiscal Year 2023 Ending March 31, 2024
— 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)

November 6, 2023
Official name:
Listings:
Code:
English URL:
Representative:
Contact:

JFE Holdings, Inc.
Tokyo stock exchange5411
www.jfe-holdings.co.jp/en
Koji Kakigi, President and CEO
Hiroki Watanabe, Manager, Public Relations Section,
Investor Relations and Corporate Communications
Department
Phone:+81-3-3597-3842
Scheduled date to submit Quarterly Securities Report:
November 6, 2023
Scheduled date to start paying dividends:
December 4, 2023
Preparation of supplementary materials for quarterly results: Yes
Quarterly results briefing:
Yes(Figures are rounded down to the nearest million yen.)

1. Consolidated Results in First Half of Fiscal 2023 (April 1 to September 30, 2023)(1) Consolidated Operating Results (cumulative total)(Percentages indicate year on year change)
Revenue(million yen)

1H
2,576,588
FY 20231H2,564,335
FY 2022

Business
profit%Profit
Before tax%(million yen)

Profit%(million yen)(million yen)%

Profitattributableto ownersof parent(million yen)%Comprehensive
income(million yen)

0.5

164,346 (12.5)

155,363 (14.3)

111,641 (11.2)

110,091(10.7) 184,731

0.1

32.0

187,915

181,246

125,658 (12.3)

123,256(12.4) 184,540

8.8

(5.5)

Basic earnings per
share

Diluted earnings pershare

1H FY 2023

186.97185.51

1H FY 2022

213.23213.12

(yen)

(6.2)

(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

Total equity(million yen)(million yen)

Equity attributableto owners ofparentTotal equity
attributable toowners of parent(million yen)(%)

End 1H FY 2023

5,678,472

2,474,393

2,401,003

42.3

End FY 2022

5,524,040

2,193,395

2,120,322

38.4

2. Dividends
Dividend per share (yen)Interim

FY 2022
FY 2023 (forecast)
Note:

%

Year-end

80.00

50.00

30.00

100.00

50.00

50.00

Revisions to dividend forecast announced most recently: No

3. Forecasts of Consolidated Financial Results in Fiscal 2023 (April 1, 2023 to March 31, 2024)(Percentages represent changes from same period of previous fiscal year)
Revenue(million yen)%

Business
profit%(million yen)

Profit before
tax%(million yen)

Profitattributableto ownersof parent

%

(yen)

(million yen)

FY 20235,360,000

1.7

290,000

23.0

270,000

28.4

190,000

Basic
earnings
per share

16.8

311.17

Note: Revisions to consolidated financial results forecasts announced most recently: Yes
Basic earnings per share in the consolidated financial forecast for the fiscal year ending March 31, 2024 is calculated
based on the expected average number of shares during the period, including the issuance of new shares through anoverseas public offering (25,000,000 shares) and the disposal of treasury shares (30,000,000 shares).

Notes1. Changes in significant subsidiaries during the term (changes in designated subsidiaries resulting in changes in
consolidated structure): No
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 September 30, 2023: 639,438,399 shares
As of March 31, 2023: 614,438,399 shares
2) Treasury stock at the end of the term
As of September 30, 2023: 3,452,990 shares
As of March 31, 2023: 33,494,986 shares
3) Average number of shares during the term
1H Fiscal 2023: 588,816,549 shares
1H Fiscal 2022: 578,035,252 sharesThis 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 thisdocument 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.
2. The supplementary financial data will be disclosed today via TDnet and published on our website.

Attachments
1. Condensed Quarterly Consolidated Financial Statements and Notes ··············································· 2(1) Condensed Quarterly Consolidated Statement of Financial Position ··········································· 2(2) Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly
Consolidated Statement of Comprehensive Income ······························································· 4(3) Condensed Quarterly Consolidated Statement of Changes in Equity ········································· 8(4) Condensed Quarterly Consolidated Statement of Cash Flow ···················································10(5) Notes to Condensed Quarterly Consolidated Financial Statements ···········································12Notes Pertaining to the Presumption of a Going Concern ······················································12
2. Supplementary Information ····································································································13

11. Condensed Quarterly Consolidated Financial Statements and Notes(1) Condensed Quarterly Consolidated Statement of Financial Position
As ofMarch 31, 2023

(million yen)
As of
September 30, 2023

AssetsCurrent assets
Cash and cash equivalents

119,391

288,699

Trade and other receivables

776,115

723,308

Contract assets

116,293

148,018

1,367,230

1,315,666

Income taxes receivable

22,957

1,263

Other financial assets

18,937

26,738Other current assets

96,759106,3132,517,685

2,610,008

40,92925,3952,558,615

2,635,404

1,891,053

1,900,727

Goodwill

14,911

15,578Intangible assets

126,855

133,053

Right-of-use asset

98,611

101,959

Investment property
Investments accounted forusing equity method
Retirement benefit asset

53,55953,291

465,482

521,795

23,521

24,590

Deferred tax assets

74,72865,707

Other financial assets

200,599

209,108

Other non-current assets

16,10017,256

Total non-current assets

2,965,425

3,043,068

5,524,040

5,678,472

Inventories

Subtotal
Assets held for sale
Total current assets
Non-current assets
Property, plant and equipment

Total assets2

As ofMarch 31, 2023

(million yen)
As of
September 30, 2023

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables
Bonds payable, borrowings,
and lease liabilities
Contract liabilities

703,212594,997

397,026

505,836

48,54356,201

Income taxes payable, etc.

32,32026,729Provisions

10,781

13,568Other financial liabilities

181,046

135,575

Other current liabilities

265,268

233,161

1,638,200

1,566,070

23,59815,667

1,661,798

1,581,738

1,465,939

1,410,167

120,663

115,122

Provisions

19,12817,579Deferred tax liabilities

5,480

7,047

Other financial liabilities

41,32556,607

Other non-current liabilities

16,30815,815

Total non-current liabilities

1,668,846

1,622,340

3,330,644

3,204,078

Share capital

147,143

171,310

Capital surplus

640,536588,944

Retained earnings

1,397,735

1,503,416

Treasury shares(156,408)(14,857)

Subtotal
Liabilities directly associatedwith assets held for sale
Total current liabilities
Non-current liabilities
Bonds payable, borrowings,
and lease obligations
Retirement benefit liability

Total liabilities
EquityOther components of equity
Equity attributable to owners ofparentNon-controlling interests

91,315

152,188

2,120,322

2,401,003

73,07373,390Total equity

2,193,395

2,474,393

5,524,040

5,678,472

Total liabilities and equity3(2) Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly
Consolidated Statement of Comprehensive Income
Condensed Quarterly Consolidated Statements of Income (First Half)First Half of Fiscal 2022
(April 1, 2022 –September 30, 2022)
2,564,335(million yen)First Half of Fiscal 2023
(April 1, 2023 –September 30, 2023)
2,576,588

Cost of sales(2,235,871)(2,254,566)

Gross profit

328,463

322,021

Selling, general and administrative expenses
Share of profit of entities accounted for using
equity method
Other income(185,850)(191,870)

23,95026,61838,33932,817

Other expenses(16,987)(25,240)

Business profit

187,915

164,346

Operating profit

187,915

164,346

Revenue

Finance income

1,311

2,653

Finance costs(7,980)(11,636)

Profit before tax

181,246

155,363

Income tax expense(55,587)(43,722)

Profit125,658

111,641

123,256

110,091

2,402

1,550

125,658

111,641

Basic earnings per share (yen)213.23186.97

Diluted earnings per share (yen)213.12185.51

Profit attributable to
Owners of parent
Non-controlling interests
ProfitEarnings per share4Condensed Quarterly Consolidated Statements of Income (Second Quarter)
Second Quarter of Fiscal
2022(July 1, 2022 –September 30, 2022)
1,310,735(million yen)
Second Quarter of Fiscal
2023(July 1, 2023 –September 30, 2023)
1,314,501

Cost of sales(1,151,539)(1,144,473)

Gross profit

159,195

170,028

Selling, general and administrative expenses
Share of profit of entities accounted for using
equity method
Other income(94,367)(95,697)

2,480

8,914

13,684

9,965

Other expenses(9,738)(13,689)

Business profit

71,256

79,522

Operating profit

71,256

79,522Finance income

873

1,847

Finance costs(4,288)(5,889)Profit before tax

67,84175,479

Income tax expense(27,194)(23,528)

Profit40,64751,951

Owners of parent

39,411

50,488Non-controlling interests

1,235

1,462

Profit40,64751,951

Revenue

Profit attributable toEarnings per share
Basic earnings per share (yen)

67.99

84.89

Diluted earnings per share (yen)

67.95

83.80

5

Condensed Quarterly Consolidated Statements of Comprehensive Income (First Half)

ProfitFirst Half of
Fiscal 2022
(April 1, 2022 –September 30, 2022)
125,658(million yen)First Half of
Fiscal 2023
(April 1, 2023 –September 30, 2023)
111,641(2,509)7,978(1,211)

6,699(1,622)(709)(5,343)

13,96826,80022,150(2,957)

4,019

Other comprehensive income:Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans
Net change in fair value of equity instruments
designated as measured at fair value through othercomprehensive income
Share of other comprehensive income of investments
accounted for using equity method
Total of items that will not be reclassified to profit orloss
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign
operations
Effective portion of cash flow hedges
Share of other comprehensive income of investments
accounted for using equity method
Total of items that may be reclassified to profit or loss
Total other comprehensive income
Comprehensive income

40,382

32,95164,22558,881
184,540

59,12173,090184,731

Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income

181,300
3,239
184,540

182,968
1,762
184,7316

Condensed Quarterly Consolidated Statements of Comprehensive Income (Second Quarter)

ProfitOther comprehensive income:Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans
Net change in fair value of equity instruments
designated as measured at fair value through othercomprehensive income
Share of other comprehensive income of investments
accounted for using equity method
Total of items that will not be reclassified to profit orloss
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign
operations
Effective portion of cash flow hedges
Share of other comprehensive income of investments
accounted for using equity method
Total of items that may be reclassified to profit or loss
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income

7

Second Quarter of
Fiscal 2022
(July 1, 2022 –September 30, 2022)
40,647(million yen)
Second Quarter of
Fiscal 2023
(July 1, 2023 –September 30, 2023)
51,951(1,235)

2,973

1,353

1,078

(996)

2,115

(878)

6,167

10,018

11,749(1,789)2,835

21,272

20,15229,501
28,622
69,27034,73840,90592,856

67,623
1,646
69,27091,2561,600
92,856

(3) Condensed Quarterly Consolidated Statement of Changes in Equity
First Half of Fiscal 2022 (April 1, 2022 – September 30, 2022)(million yen)
Equity attributable to owners of parent
Other components of equity
Net change infair value ofequityinstruments
Remeasurements
designated asof defined benefit
measured at
plans
fair value
through othercomprehensive
incomeCapitalsurplusRetainedearnings

Treasuryshares147,143652,233

1,294,875(180,580)－

55,560

Profit－－123,256－－－

Other comprehensive income

－

－

－

－

(1,945)(3,025)

Share capital

Balance as of April 1, 2022

Comprehensive income－－

123,256－(1,945)(3,025)Purchase of treasury shares

－

－

－

(21)

－

－

Disposal of treasury shares－(2,002)－

24,202－－

Dividends－－(46,118)－－－

Share-based payment transactions

－

58

－

27

－

－

Changes in scope of consolidation

－

－

－

－

－

－

－

(9,211)

－

－

－

－

－

－

2,279

－

1,945

(4,224)

Transfer to non-financial assets

－

－

－

－

－

－

Other

Changes in ownership interest in
subsidiaries
Transfer from other components ofequity to retained earnings

－

－

－

－

－

－

Total transactions with owners－(11,155)(43,839)

24,208

1,945(4,224)

Balance as of September 30, 2022

147,143

641,077

1,374,292(156,371)－

48,309Equity attributable to owners of parent
Other components of equity
Exchangedifferences on
Effective
translation of portion of cash
flow hedges
foreign
operations
Balance as of April 1, 2022

Noncontrollinginterests

Total

Total

Total equity

16,086

2,949

74,596

1,988,268

82,4702,070,739－－－

123,256

2,402

125,658

Other comprehensive income

65,473(2,457)58,04458,044837

58,881

Comprehensive income

65,473(2,457)58,044

181,300

3,239

184,540

ProfitPurchase of treasury shares

－

－

－

(21)

－

(21)

Disposal of treasury shares

－

－

－

22,200－22,200

Dividends－－－(46,118)(1,380)(47,498)

Share-based payment transactions

－

－

－

85

－

85

Changes in scope of consolidation

－

－

－

－

4

4

－

－

－

(9,211)(12,071)(21,283)－－(2,279)－－－Transfer to non-financial assets

－

263

263

263

－

263

Other

－

－

－

－

219

219

Total transactions with owners－

263(2,015)(32,802)(13,227)(46,029)

Balance as of September 30, 2022

81,560754

130,624

2,136,765

72,4832,209,249

Changes in ownership interest in
subsidiaries
Transfer from other components of equity
to retained earnings

8First Half of Fiscal 2023 (April 1, 2023 – September 30, 2023)(million yen)
Equity attributable to owners of parent
Other components of equity

CapitalsurplusRetainedearnings

Treasuryshares

640,536－－

1,397,735
110,091－(156,408)
－
－

－
－
－

－
－
8,144

Net change infair value ofequityinstruments
designated asmeasured atfair value
through othercomprehensiv
e income
42,446
－
5,968

－

－

110,091

－

－

8,144

5,968

24,167－

24,167
(453)

－
－

－
－

－
－

－
－

－
－

Share capital

Balance as of April 1, 2023
ProfitOther comprehensive income

147,143－－

Comprehensive income
Issuance of new shares
Share issuance costRemeasurements
Share acquisitionof defined benefit
rightsplans

Purchase of treasury shares

－

－

－

(34)

－

－

－

Disposal of treasury shares
Dividends
Share-based paymenttransactions－－(75,224)－－(17,447)

141,470
－

－
－

－
－

－
－

－

(26)

－

114

－

－

－

Issuance of convertible bonds

－

－

－

－

3,081

－

－

－

(1)

－

－

－

－

－

－

(53)

－

－

－

－

－

－

－

13,037－－(8,144)(4,892)

－
－

－
－

－
－

－
－

－
－

－
－

－
－

24,167(51,591)(4,410)141,551

3,081(8,144)(4,892)

171,310

588,944

1,503,416(14,857)

3,081－

43,521

Changes in scope of
consolidation
Changes in ownership interest in
subsidiaries
Transfer from other componentsof equity to retained earnings
Transfer to non-financial assets
Other
Total transactions withownersBalance as of September 30, 2023

Equity attributable to owners of parent
Other components of equity
Exchangedifferences on
Effective
translation of portion of cash
flow hedges
foreign
operations
Balance as of April 1, 2023

Noncontrollinginterests

Total

Total

Total equity

47,941

928

91,3152,120,322

73,073

2,193,395

ProfitOther comprehensive income－
52,630－6,134－
72,877110,091
72,8771,550
212

111,641
73,090Comprehensive income

52,6306,134

72,877

182,968

1,762

184,731

Issuance of new shares
Share issuance cost
Purchase of treasury shares
Disposal of treasury shares
Dividends
Share-based payment transactions

－
－
－
－
－
－

－
－
－
－
－
－

－
－
－
－
－
－

48,335(453)(34)
66,246(17,447)
88

－
－
－
－
(924)
－

48,335(453)(34)
66,246(18,371)
88

Issuance of convertible bonds

－

－

3,081

3,081

－

3,081

Changes in scope of consolidation
Changes in ownership interest in
subsidiaries
Transfer from other components of equity
to retained earnings
Transfer to non-financial assets
Other

－

－

－

(1)

(518)

(519)

－

－

－

(53)

59

5

－

－

(13,037)

－

－

－

－
－

(2,049)－(2,049)－(2,049)－－(61)(2,049)(61)－
100,571(2,049)5,013(12,005)
152,188

97,7122,401,003(1,445)73,39096,2662,474,393

Total transactions with owners
Balance as of September 30, 2023

9

(4) Condensed Quarterly Consolidated Statement of Cash Flow (First Half)First Half of
Fiscal 2022
(April 1, 2022 –September 30, 2022)(million yen)First Half of
Fiscal 2023
(April 1, 2023 –September 30, 2023)

Cash flows from operating activities
Profit before tax

181,246

155,363

Depreciation and amortization

129,556

143,465

Increase (decrease) in allowance(2,924)902

Interest and dividend income (loss)(4,587)(5,913)

Interest expenses
Share of loss (profit) of investments accounted forusing equity method
Decrease (increase) in trade and otherreceivables
Decrease (increase) in inventories

7,341

10,596(23,950)(26,618)

14,96969,740(189,853)

67,214

Increase (decrease) in trade and other payables(43,689)(106,502)

Other(25,505)(89,234)

Subtotal

42,601

219,012Interest and dividends received

26,08816,284

Interest paid

(6,723)(10,628)

Income taxes refund (paid)(60,004)(18,293)

1,961

206,375(131,249)(150,513)

5,973

1,368

(3,823)(11,121)

Proceeds from sale of investments

8,600

10,170Other(1,124)

3,941(121,623)(146,154)

Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment,
intangible assets, and investment property
Proceeds from sale of property, plant andequipment, intangible assets, and investment
property
Purchase of investments

Net cash provided by (used in) investing activities

10(million yen)First Half of
Fiscal 2023
(April 1, 2023 –September 30, 2023)

First Half of
Fiscal 2022
(April 1, 2022 –September 30, 2022)
Cash flows from financing activities
8,130

16,333

Increase (decrease) in commercial papers

166,999(19,999)

Proceeds from long-term borrowings

83,776

5,314

Repayments of long-term borrowings(88,367)(47,942)

Net increase (decrease) in short-term borrowings

Proceeds from issuance of bonds

30,00090,000

Payments for redemption of bonds(10,000)(20,000)

Proceeds from issuance of shares－

52,072(21)(34)

Payments for purchase of treasury shares

880

62,487

Dividends paid to owners of parent(46,118)(17,447)

Other(24,222)(21,700)

Net cash provided by (used in) financing activities

121,056

99,083

13,914

10,181

15,308

169,485

Proceeds from disposal of treasury shares

Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents resulting from transfer to assets held forsale
Cash and cash equivalents at beginning of period

－

(177)

101,773

119,391

Cash and cash equivalents at end of period

117,082

288,69911

(5) Notes to the Condensed Quarterly Consolidated Financial Statements
Notes Pertaining to the Presumption of a Going Concern
There is no item for this period122. Supplementary Information(1) Consolidated Results in First Half and Earnings Forecasts for Fiscal 2023
(billion yen)
FY 2022

Steel Business

FY 2023

Full year

FY2023
Forecast(August 3)
Full year
3,770.0

Change1H

Full year

1H

Full year

1H

1,918.9

3,881.1

1,865.8

3,800.0(53.1)(81.1)Engineering Business

219.0

512.5

248.4

550.0

29.4

37.5

550.0

Trading Business

750.2

1,514.1

742.0

1,580.0

(8.2)

65.9

1,620.0

Adjustments
Revenue
Business profit 1(323.9)(638.9)(279.7)(570.0)

44.2

68.9

(560.0)2,564.3

5,268.7

2,576.5

5,360.0

12.2

91.3

5,380.0

A

187.9

235.8

164.3

290.0

(23.6)

54.2

290.0

B

(6.6)

(14.8)(8.9)(20.0)

(2.3)

(5.2)

(20.0)

Steel Business

148.2

146.8

122.8

200.0

(25.4)

53.2

200.0

Engineering Business

(3.9)

13.4

8.7

25.0

12.6

11.6

25.0

Trading Business

40.6

65.1

26.8

48.0

(13.8)(17.1)

48.0

Adjustments

(3.6)

(4.3)

(3.1)

(3.0)

0.5

1.3

(3.0)

181.2

221.0

155.3

270.0

(25.9)

49.0

270.0

-

(10.7)

-

-

-

10.7

-

(25.9)

59.8

270.0

Finance income / costs
Segment Profit

Total

A+B

Exceptional Items 2
Profit before tax
Tax Expense and Profit (Loss)
Attributable to Non-controlling
Interests

181.2

210.2

155.3

270.0

(57.9)(47.6)(45.2)(80.0)

12.7(32.4)(80.0)

Profit Attributable to Owners of Parent

123.2

162.6

110.0

190.0

(13.2)

27.4

190.0

1

Business profit: Profit that excludes financial income and exceptional items from profit before tax. It is a benchmark indicator of thecompany’s consolidated earnings.
2

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

(2) Consolidated Financial Indices (2023 Forecasts)
Fiscal 2022

Fiscal 2023

Return on Sales (ROS)1

4.5%

5.4%

0.9%

Return on Assets (ROA)2

4.4%

5.2%

0.8%

Return on Equity (ROE)3

Change

7.9%

8.3%

0.4%

EBITDA4

505.4 billion yen

570.0 billion yen

64.6 billion yen

Interest-bearing debt outstanding

1,862.9 billion yen

1,900.0 billion yen

37.1 billion yen

3.7x

3.3x

(0.4x)

2,120.3 billion yen

2,450.0 billion yen

329.7 billion yen

67.8%

60.9%

(6.9%)

Debt / EBITDA multiple5
Equity attributable to owners of parent
D/E Ratio6

ROS = Business profit / Revenue
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 priceis deemed to be capital, as assessed by rating agencies.
12* For debt having a capital component, a portion of its issue price is deemed to be capital, as assessed by rating agencies.
Borrowing Execution Date
Amount Borrowed
Assessment of Equity Content
Amount Deemed to be Capital(or Bond Issuance Date)(or Amount of Bond)
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***On December 1, 2022, the assessment of equity content was changed from 25% to 50% by the rating agency.
**Of the subordinated loans totaling 300 billion yen raised on March 19, 2018, 200 billion yen was repaid in advance of maturity, and a
new subordinated loan of 205 billion yen was raised on March 20, 2023.

13

(3) Crude Steel Production (JFE Steel)Fiscal 2022

Non-consolidated
Consolidated

Fiscal 2023

Non-consolidated
Consolidated(million tons)

1Q

2Q

1H

3Q

4Q

2H

Full year

6.43
6.77
6.05
6.38

6.21
6.59
6.11
6.47

12.64
13.37
12.16
12.85

5.48
5.81

5.97
6.29

11.45
12.11
11.60*

24.10
25.48
23.80**estimate(4) Shipments (JFE Steel on non-consolidated basis)(million tons)

1Q

2Q

1H

3Q

4Q

2H

Full year

Fiscal 2022

5.54

5.32

10.86

5.25

5.64

10.88

21.74

Fiscal 2023

5.23

5.42

10.65

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

(%)

1Q

2Q

1H

3Q

4Q

2H

Full year

Fiscal 2022

48.5

45.0

46.7

41.0

43.6

42.2

44.5

Fiscal 2023

44.2

44.2

44.2

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

1Q

2Q

1H

3Q

4Q

2H

Full year

Fiscal 2022

126.5

136.6

131.6

144.0

133.2

138.6

135.1

Fiscal 2023

135.8

144.1

139.9

150*

145*
*estimate(7) Average Selling Price (JFE Steel on non-consolidated basis)(thousand yen/ton)

1Q

2Q

1H

3Q

4Q

2H

Full year

Fiscal 2022

126.7

136.7

131.6

136.3

124.0

129.9

130.8

Fiscal 2023

128.5

130.1

129.3

(8) Engineering Business Orders (including intersegment transactions)(billion yen)

Field

Fiscal 2022

Waste to Resource
Carbon Neutral
Combined Utility Services
Core Infrastructure

216.9
57.6
21.1
269.3

Fiscal 2023
Forecast
238.0
80.0
17.0
245.0

Total

564.9

580.0

Change
21.1
22.4
(4.1)
(24.3)
15.1(9) Capital Investment and Depreciation and Amortization (JFE Holdings)(billion yen)

Fiscal2022

Fiscal 2023
Forecast

Capital Investment

325.6

430.0*

Depreciation & Amortization

269.6

280.0**estimate14(on construction basis)

(10) Breakdown of Changes in Segment Profit

a. First Half of Fiscal 2023, compared to same period of Fiscal 2022
- 25.9 billion yen: 181.2 billion yen in first half of fiscal 2022 → 155.3 billion yen in first half of fiscal 2023
Change(billion yen)
Steel Business- Cost15.0 Operational enhancement-

Sales volume and mix(10.0)

Crude steel volume: 12.64→12.16 million tons-

Sales prices and raw materials

144.0

Improved spreads due to continued sales priceimprovement efforts-

Unrealized gains (losses) on inventories(117.0)Inventory valuation -81.0, carry over -22.0, foreignexchange valuation -14.0-

Others

(57.4)-

Total(25.4)

Group companies -8.0, foreign exchanges effects
on trade -11.0, depreciation expense -10.0, etc.

Engineering and Trading businesses, and Adjustments(0.5)

b. First Half of Fiscal 2023, compared to previous forecast
40.3 billion yen: 115.0 billion yen in previous forecast → 155.3 billion yen in first half of fiscal 2023
Change(billion yen)
Steel Business
-

Cost

5.0

Operational enhancement-

Sales volume and mix(3.0)

Crude steel volume: about 12.30 → 12.16 million
tons-

Sales prices and raw materials

12.0

Improved spreads due to continued sales priceimprovement efforts-

Unrealized gains (losses) on inventories

15.0

Inventory valuation 4.0, carry over 2.0, foreignexchange valuation 9.0-

Others6.8

Group companies 6.0, etc.

-

Total

35.8

Engineering and Trading businesses, and Adjustments

4.5

c. Fiscal 2023 forecast, compared to Fiscal 2022
49.0 billion yen: 221.0 billion yen in fiscal 2022 → 270.0 billion yen in fiscal 2023 forecast

Steel BusinessChange(billion yen)

-

Cost

68.0

Structural reform effects 20.0, operational
enhancement 25.0, resolution of blast furnace
refurbishment Impact 13.0, resolution of
production reduction impact 10.0-

Sales volume and mix

2.0

Crude steel volume: 24.10→about 23.80 million
tons-

Sales prices and raw materials

120.0

Improved spreads due to continued sales priceimprovement efforts-

Unrealized gains (losses) on inventories(73.0)

Inventory valuation -77.0, carry over 26.0, foreignexchange valuation -2.0, one-time structuralreform costs -20.0-

Others(63.8)

Foreign exchanges effects on trade -23.0,
depreciation expense -11.0,etc.

-

Total

53.2

Engineering and Trading businesses, and Adjustments

(4.2)

15

d. Fiscal 2023 forecast, compared to previous forecast
0.0 billion yen: 270.0 billion yen in previous forecast → 270.0 billion yen in fiscal 2023 forecast
Change(billion yen)
Steel Business
Cost
5.0
Crude steel volume: about 24.60 →about 23.80
Sales volume and mix(8.0)
million tons
Deterioration due to the slowdown in overseas
Sales prices and raw materials(25.0)
market conditions
Inventory valuation 14.0, carry over 22.0, foreign
Unrealized gains (losses) on inventories
25.0 exchange valuation 9.0, one-time structuralreform costs -20.0
Others
3.0
Total
0.0
Engineering and Trading businesses, and Adjustments

0.0

###

16