JFE Holdings’ Financial Results through Third Quarterof Fiscal Year 2015 Ending March 31, 2016
— All financial information has been prepared in accordance with generally accepted accounting principles in Japan —(Note: The following is an English translation of an original Japanese document)

January 29, 2016
Official name:
Listings:
Code:
English URL:
Representative:
Contact:

JFE Holdings, Inc.
Tokyo and Nagoya stock exchanges
5411
www.jfe-holdings.co.jp/en
Eiji Hayashida, President and CEO
Moriyoshi Hara, Manager, Public Relations Section
Investor Relations and Corporate Communications
Department+81-3-3597-3842
February 3, 2016
Yes
Yes

Phone:
Scheduled date to submit Quarterly Securities Report:
Dividend payment starting date:Preparation of supplementary materials for quarterly results:
Quarterly results briefing:(Figures are rounded down to the nearest million yen.)

1. Consolidated Results through Third Quarter of Fiscal 2015 (April 1 to December 31, 2015)(1) Consolidated Operating Results (cumulative total)
Year-onyearchangeNet
sales(million yen)

Year-onyearchangeOperatingincome(million yen)

(%)

(%)

Ordinary
income(million yen)

ProfitYear-onYear-onNet income
Net income
attributable
per share
year
year
per share
to owners[fully diluted]
changechangeof parent
(yen)
(%)

(%)

(million yen)(yen)

3Q FY 2015

2,548,080(9.6)

74,722(49.0)

63,034(62.7)

37,332(64.9)

64.73-

3Q FY 2014

2,819,326

6.7

146,43251.4

168,94635.5

106,39839.8

184.45-

Note: Comprehensive income:-32,917 million yen in 3Q FY 2015 (-)
181,108 million yen in 3Q FY 2014 (up 22.5%)(2) Consolidated Financial Position
Total assets

Net assets(million yen)(million yen)

Equity capitalratio

Net assets per share
(yen)

(%)

End 3Q FY 2015

4,359,713

1,922,496

42.9

3,241.71

End FY 2014

4,639,412

1,990,023

41.8

3,362.22

Note: Shareholders' equity: 1,869,637 million yen as of December 31, 2015
1,938,938 million yen as of March 31, 2015

2. Dividends
Dividend per share (yen)InterimYear-end

FY 2014

60.00

20.00

40.00

FY 201530.00*

20.00

10.00**Estimate
Note:
Revisions to dividend forecast announced most recently: Yes

3. Forecasts of Consolidated Financial Results in Fiscal 2015 (April 1, 2015 to March 31, 2016)
Net
sales
(million yen)

FY 20153,420,000

Year-onyearchange(%)(11.2)

Operatingincome(million yen)

90,000Year-onyearchange(%)(59.6)

Ordinary
income(million yen)

65,000Year-onyearchange(%)(71.9)

ProfitYear-onNet income
attributable
year
per share
to ownerschangeof parent(yen)(million yen)

25,000Note: Revisions to consolidated financial results forecasts announced most recently: Yes(%)(82.1)

43.35

Notes
1. Significant changes in subsidiaries during the term (changes in designated subsidiaries resulting in changes in consolidated
structure): No

2. Application of special accounting methods in the preparation of quarterly consolidated financial statements: No

3. Changes in accounting policies, accounting estimates and restatements
1) Changes in the accounting policies resulting from amendments to accounting standards: Yes
2) Changes other than 1) above: No
3) Changes in accounting estimates: No4) Restatements: No
Note: For more details, see “Notes to Summary Information/Changes in Accounting Policies, Accounting Estimates andRestatements” on page 4 of the attached document.

4. Number of outstanding shares (common stock)
1) Outstanding shares at the end of term (including treasury stock)
As of December 31, 2015: 614,438,399 shares
As of March 31, 2015: 614,438,399 shares
2) Treasury stock at the end of term
As of December 31, 2015: 37,694,761 shares
As of March 31, 2015: 37,754,166 shares
3) Average number of shares during the term (quarterly consolidated cumulative period)
3Q FY 2015: 576,744,328 shares
3Q FY 2014: 576,837,969 shares

Status of Quarterly Review
At the point of disclosing these quarterly financial results, the review of consolidated balance sheets in accordance with the
Financial Instruments and Exchange Act was still underway.

Explanation of Appropriate Use of Results Forecasts, and Other Matters of Note
1. Forecasts 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 ofcircumstances. For a description of the results forecasts, see “(2) Consolidated Results Forecasts” on page 2 of the attacheddocument.
2. Notes to the financial results can be viewed at the JFE Holdings website.

Attachments
1. Qualitative Information··········································································································· 2(1) Consolidated Business Results ·························································································· 2(2) Consolidated Results Forecasts·························································································· 2
2. Notes to Summary Information ································································································ 4
Changes in Accounting Policies, Accounting Estimates and Restatements ······································· 4
3. Consolidated Financial Statements··························································································· 5(1) Consolidated Balance Sheets ···························································································· 5(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ········· 7
Consolidated Statements of Income (First Three Quarters) ···················································· 7
Consolidated Statements of Comprehensive Income (First Three Quarters) ······························· 8(3) Notes Pertaining to the Presumption of a Going Concern ························································· 9(4) Notes on Significant Changes to Shareholders’ Equity ····························································· 9
4. Reference··························································································································10

11. Qualitative Information(1) Consolidated Business Results
The Japanese economy in the first three quarters of fiscal 2015 (ended December 31, 2015) saw
capital investment and personal consumption remain steady, both backed by improved corporate
performance. Economic slowdowns in emerging nations, however, continued to impact productionand exports negatively. Changes in the monetary policies of the United States and drops inresource prices posed downward risks in emerging economies, which heightened the uncertainlyof economic outlook.
In the first three quarters, on a consolidated basis, JFE Holdings posted net sales of 2,548.0 billion
yen, down 271.3 billion yen from the year earlier. Operating income of 74.7 billion yen fell 71.7
billion yen and ordinary income of 63.0 billion yen declined 105.9 billion yen. Income before income
taxes and minority interests decreased 94.9 billion to 70.3 billion yen and profit attributable toowners of the parent company dropped 69.0 billion to 37.3 billion yen.
By segment, steel business posted net sales of 1,849.9 billion yen, down 300.0 billion yen, theresult of steel production and sales declining on a volume basis in the face of persistently sluggish
domestic inventory and sales prices falling further due to oversupply in Asia. Ordinary income
decreased 106.8 billion yen to 40.8 billion yen, hit by the production and sales volume declines anda further deterioration in conditions for exports.
Engineering business net sales rose 18.9 billion yen to 255.3 billion yen. The increase in sales
raised ordinary income to 5.9 billion yen, up 1.0 billion yen from the same period the previous year.
Trading business net sales decreased 109.6 billion yen to 1,330.3 billion yen, mainly due to steel
sales volume dropping because of a fall in selling prices of steel products and delays in reducing
inventory. Ordinary income of 14.5 billion yen was down 3.3 billion yen.

(2) Consolidated Results Forecasts
The following are full-year forecasts for each business segment.
In steel business, increased oversupplies of steel worldwide are continuing to weaken steel prices,
particularly as demand declines in countries such as China. This is reducing the profitability of JFE
Steel’s export business. At present, it is difficult to forecast when market conditions will recover, as
current conditions are expected to continue in the fourth quarter of this fiscal year. Demand in theJapanese market is expected to stay robust, although some products are experiencing a delay indemand recovery. Given that export prices are expected to decline and that falling prices ofprincipal raw materials are forecast to bring about losses on inventory valuation, JFE Steel now
forecasts ordinary income of 30.0 billion yen, which is short of the previous forecast announced on
October 29, 2015. In the current harsh business conditions, the company will strive to strengthen
its profit base by steadily implementing measures specified in its fifth medium-term business plan,such as strengthening manufacturing bases, improving the product mix and increasing overseas
business profitability, while also adapting to market conditions.
Engineering business is expected to achieve net sales of 400.0 billion yen and ordinary income of2

20.0 billion yen. Received-order value, net sales and ordinary income are expected to hit record
highs thanks to aggressive efforts to win more orders.
Trading business, faced with deteriorating conditions in overseas markets, is expected to see
ordinary income of 15.5 billion yen, down from the previous forecast announced on October 29,
2015.
Overall, JFE Holdings is forecasting full-year consolidated net sales of 3,420.0 billion yen,operating income of 90.0 billion yen and ordinary income of 65.0 billion yen. The company expects
profit attributable to owners of the parent to be 25.0 billion yen.
The company has decided to propose at its general meeting of shareholders a yearend dividend of
10 yen per share, which would bring the annual dividend to 30 yen per share.

32. Notes to Summary Information
Changes in Accounting Policies, Accounting Estimates and Restatements
Application of Accounting Standard for Business Combinations
Effective the first quarter of fiscal 2015, JFE Holdings began applying the Revised AccountingStandard for Business Combinations (Accounting Standards Board of Japan [ASBJ] Statement No.
21 of September 13, 2013, hereinafter referred to as the Business Combinations AccountingStandard), the Revised Accounting Standard for Consolidated Financial Statements (ASBJ
Statement No. 22 of September 13, 2013, hereinafter referred to as the Consolidation AccountingStandard), and the Revised Accounting Standard for Business Divestitures (ASBJ Statement No.7
of September 13, 2013, hereinafter referred to as the Business Divestitures Accounting Standard).
The standards were adopted to change the method of accounting and thereby record as a capitalsurplus any difference arising from changes in equity in subsidiaries that remain under the controlof JFE Holdings, and to record the corresponding acquisition-related costs as expenses for the
fiscal year in which the costs are incurred. For business combinations implemented in or after the
first quarter of fiscal 2015, the accounting method has been changed to reflect the adjustments tothe allocated amount of acquisition costs on the finalization of provisional accounting treatment in
the consolidated financial statements for the quarter containing the date of the businesscombinations. Also, the presentation method of net income has been revised, and the reference to“minority interests” was changed to “non-controlling interests.” To reflect these changes inpresentation, consolidated financial statements have been reclassified for the three quarters to
December 31, 2014 and the fiscal year ended March 31, 2015.
To apply the accounting standards for business combinations effective the first quarter of fiscal
2015, the transitional treatment as prescribed in Article 58-2 (3) of the Business Combinations
Accounting Standard, Article 44-5 (4) of the Consolidation Accounting Standard and Article 57-4 (4)of the Business Divestitures Accounting Standard was applied.
As a result, both ordinary income and income before income taxes and minority interests for thethree quarters to December 31, 2015 decreased by 33 million yen. The capital surplus at the endof the three quarters increased by 33 million yen.

4

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(million yen)
As of
As of
March 31, 2015 December 31, 2015
Asset
Current assets:
Cash and deposits
Notes and accounts receivable
Merchandise and finished goods
Work in progress
Raw materials and supplies
Other current assets
Allowance for doubtful accounts
Total current assets
Non-current assets:
Property, plant and equipment:
Machinery and equipment, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets:
Investments in securities
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

585,88980,379771,574
357,733
45,798408,871
203,739(2,326)
1,871,280

665,134
335,883
73,876398,661
199,209(1,933)
1,751,211

603,538
499,512526,540
1,629,591
83,979596,829498,293
513,544
1,608,667
81,177970,250
90,462(6,152)
1,054,560
2,768,131
4,639,412

843,788
79,670(4,802)
918,656
2,608,501
4,359,713

As ofMarch 31, 2015

(million yen)
As ofDecember 31, 2015

469,107
288,004
80,00012,908
365,632
1,215,653

413,282
343,616
75,99720,0009,843
310,984
1,173,724

145,000
988,756
61,984
119,331
118,662
1,433,735
2,649,388

125,000
845,164
59,045
118,934
115,346
1,263,491
2,437,216

Shareholders’ equity:
Common stock
Capital surplus
Retained earnings
Treasury stock, at cost
Total shareholders’ equity

147,143
647,121
1,066,517(179,430)
1,681,350

147,143
647,154
1,068,722(178,629)
1,684,390

Accumulated other comprehensive income:Net unrealized gains on securities
Deferred earnings on hedges
Net unrealized gains on revaluation of land
Translation adjustments
Accumulated adjustments for retirement benefits
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net asset

194,733(535)
15,654
41,107
6,626
257,587
51,085
1,990,023
4,639,412

151,428(1,767)
15,644
13,148
6,793
185,247
52,8591,922,496
4,359,713

Liabilities and shareholders' equity
Current liabilities:
Notes and accounts payable
Short-term borrowings
Commercial paper
Current portion of corporate bonds
Provision
Other current liabilities
Total current liabilities
Long-term liabilities:
Corporate bonds
Long-term borrowings
Provision
Net defined-benefit liabilities
Other
Total long-term liabilities
Total liabilities
Net assets

6

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
IncomeConsolidated Statements of Income (First Three Quarters)
Through Third
Quarter of
Fiscal 2014

(million yen)Through Third
Quarter of
Fiscal 2015

2,819,326
2,442,633
376,693230,261
146,4322,548,080
2,234,674
313,406
238,683
74,722

821
9,686
5,658
41,378

802
9,918
5,450
10,81657,54526,986

Non-operating expenses:
Interest expense
Loss on disposal of fixed assets
Other
Total non-operating expenses

10,868
9,049
15,11335,0309,441
11,47517,757
38,674

Ordinary income

168,946

63,034

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income:Interest income
Dividend income
Rent income
Other
Total non-operating income

Extraordinary income:
Profit on sales of property, plant and equipment, etc.
Profit on sales of investments in securities
Total extraordinary income
Extraordinary losses:
Impairment loss
Loss on valuation of investments in capital
Total extraordinary loss

3,082
5,193
8,276

7,299
7,299

7,242
4,776
12,019-

Income before income taxes and non-controlling interests
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

165,203
55,101
110,102
3,703
106,398

70,33430,44339,8902,558
37,332

7

Consolidated Statements of Comprehensive Income (First Three Quarters)

ProfitOther comprehensive income:Net unrealized gains on securities
Deferred gains on hedges
Translation adjustments
Adjustments for retirement benefits
Share of other comprehensive income of affiliates accounted forusing equity method
Total other comprehensive income
Comprehensive income:(breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

8

Through Third
Quarter of
Fiscal 2014
110,102(million yen)Through Third
Quarter of
Fiscal 2015
39,89056,623
1,080
3,890
1,222

(42,535)(1,351)(12,834)
270

8,189
71,005
181,108(16,357)(72,808)(32,917)

176,798
4,309(34,996)
2,079

(3) Notes Pertaining to the Presumption of a Going Concern
There is no item for this period.
(4) Notes on Significant Changes in Stockholders’ Equity
There is no item for this period.

9

4. Reference(1) Consolidated Results in First Three Quarters and Earnings Forecasts for Fiscal 2015
(billion yen)

FY2014First Three
Quarters
2,149.9

Steel Business

FY2015First Three
Quarters
1,849.9

Full year
2,873.8(Reference)
Full-year
forecasts
announced on
October 29,
2015

ChangeFull year*
2,460.0

First Three
Quarters(300.0)

Full year*(413.8)2,550.0

236.4

367.3

255.3

400.0

18.9

32.7

400.0

Trading Business

1,439.9

1,934.4

1,330.3

1,760.0(109.6)(174.4)

1,920.0

Adjustments(1,007.0)(1,325.3)(887.5)(1,200.0)

119.5

125.3

(1,210.0)

Net Sales

2,819.3

3,850.3

2,548.0

3,420.0(271.3)(430.3)3,660.0

Operating Income
Non-operating Income(Expenses)

146.4

222.5

74.7

90.0

(71.7)(132.5)

120.0

22.5

8.4

(11.6)(25.0)(34.1)(33.4)(20.0)

Steel Business

147.6

188.5

40.8

30.0

(106.8)(158.5)

60.0

4.9

18.0

5.9

20.0

1.0

2.0

20.0

Engineering BusinessEngineering BusinessTrading Business

17.8

24.6

14.5

15.5

(3.3)

(9.1)

20.0

Adjustments

(1.4)

(0.2)

1.7

(0.5)

3.1

(0.3)

0

Ordinary Income (Loss)

168.9

231.0

63.0

65.0

(105.9)(166.0)100.0

Extraordinary Profit (Loss)
Income Before Income Taxes andMinority Interests
Tax Expense and Profit
Attributable to Non-controlling
Interests
Profit Attributable to Owners of
Parent

(3.7)

(4.3)

7.2

0

10.9

4.3

0

165.2

226.6

70.3

65.0

(94.9)(161.6)100.0(58.8)(87.3)(33.0)(40.0)

25.8

47.3(50.0)

106.3

139.3

37.3

25.0

(69.0)(114.3)50.0*estimate(2) Consolidated Financial Indices

1

6.0%

Fiscal 2015
(estimate)
1.9%

Return on Assets (ROA)2

5.5%

1.7%

Fiscal 2014

Return on Sales (ROS)

Return on Equity (ROE)3

Change(4.1%)(3.8%)

7.7%

1.3%(6.4%)

Debt Outstanding

1,501.7 billion yen

1,390.0 billion yen(111.7 billion yen)

Shareholders' Equity

1,938.9 billion yen

1,870.0 billion yen(68.9 billion yen)

4

59.0%

55.6%

(3.4%)

D/E Ratio
1

ROS = Ordinary income / net sales
ROA = Ordinary income before interest expenses / Total assets (average)
3
ROE = Profit attributable to owners of parent / Shareholders' equity
4
D/E ratio = Debt outstanding / Shareholders' equity. For debt having a capital component, 75% of the 300 billion yen issue price isdeemed to be capital, as assessed by rating agencies.
210(3) Crude Steel Production (JFE Steel)
FY 2014

Non-consolidated
Consolidated

1Q
7.14
7.87

2Q
7.35
8.01

1H
14.50
15.88

3Q
6.94
7.61

4Q
7.00
7.56

FY 2015

Non-consolidated
Consolidated

6.54
7.19

6.91
7.50

13.45
14.69

6.98
7.57

-

(million tons)
2H
Full year
13.94
28.44
15.16
31.04
27.50*
30.00**Approximate estimate-(4) Shipments (JFE Steel on non-consolidated basis)
1Q

2Q

1H

3Q

4Q

2H

(million tons)
Full year

FY 2014

6.41

6.62

13.04

6.53

6.51

13.04

26.07

FY 2015

5.98

6.39

12.37

6.45

-

25.50**Approximate estimate(5) Export Ratio on Value Basis (JFE Steel on non-consolidated basis)
1Q

2Q

1H

3Q

4Q

2H

(%)
Full year

FY 2014

46.2

49.3

47.8

48.1

48.6

48.4

48.1

FY 2015

46.2

48.6

47.4

44.8

43*

44*

46*
*estimate(6) Foreign Exchange Rate (Yen/US dollar)
1Q

2Q

1H

3Q

4Q

2H

(JPY/USD)
Full year

FY 2014

102.4

102.7

102.5

112.3

119.4

115.9

109.2

FY 2015

121.0

122.6

121.8

121.2

120*

121*

121*
*estimate(7) Average Selling Price (JFE Steel on non-consolidated basis)
1Q

2Q

1H

3Q

4Q

(thousand yen/ton)
2H
Full year

FY 2014

77.9

75.6

76.7

77.9

77.3

77.6

77.1

FY 2015

73.5

68.8

71.0

65.1

62*

63*

67*
*estimate(8) Engineering Business Orders (including inter-segment transactions)
FY 2015(billion yen)
460.0*

0.1% increase from previous year
*estimate11(9) Debt Outstanding, Interest Expense, and Cash and Deposits(JFE Holdings, consolidated basis)
Debt outstanding
As ofMarch 31, 2015
March 31, 2016
Cash and deposits
As ofMarch 31, 2015
March 31, 2016

Interest expense(billion yen)
1,501.7
1,390.0*(billion yen)
-14.5
-13.0*FY 2014
FY 2015(billion yen)
85.8
50.0*

*estimate(10) Capital Investment and Depreciation Cost (JFE Holdings, consolidated basis)
FY 2014(billion yen)
FY 2015

Capital investment

225.9

230.0*

Depreciation

176.0

180.0*(on construction basis)*estimate(11) Breakdown of Changes in Ordinary Income for Steel Businessa. First three quarters of FY 2015, compared to same period of FY 2014
ChangeOrdinary income- Sales volume, sales prices and raw
materials prices- Cost reductions- Unrealized gains on inventories andothers(106.8)

1Q-3Q of FY
2014
147.6

(billion yen)
1Q-3Q of FY
2015
40.8

FY 2014(billion yen)
FY 2015(70.0)
25.0(61.8)

b. FY 2015 forecast, compared to FY 2014
ChangeOrdinary income- Sales volume, sales prices and raw
materials prices- Cost reductions- Unrealized gains on inventories andothers(158.5)

188.5

30.0*(120.0)35.0(73.5)*Approximate estimate

c. FY 2015 revised forecasts, compared to initial forecasts on July 30, 2015
ChangeOrdinary income- Sales volume, sales prices and raw
materials prices- Cost reductions- Unrealized gains on inventories andothers

FY 2014(30.0)

60.0

(billion yen)
FY 201530.0*(15.0)
0(15.0)*Approximate estimate###

12