JFE Holdings’ Financial Results through Third Quarterof Fiscal Year 2018 Ending March 31, 2019
— 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)

Official name:
Listings:
Code:
English URL:
Representative:
Contact:
Phone:
Scheduled date to submit Quarterly Securities Report:
Dividend payment starting date:Preparation of supplementary materials for quarterly results:
Quarterly results briefing:

February 1, 2019
JFE Holdings, Inc.
Tokyo and Nagoya stock exchanges
5411
www.jfe-holdings.co.jp/en
Eiji Hayashida, President and CEO
Hidetsugu Tawara, Manager, Public Relations Section
Investor Relations and Corporate Communications
Department+81-3-3597-3842
February 6, 2019
Yes
Yes
(Figures are rounded down to the nearest million yen.)

1. Consolidated Results through Third Quarter of Fiscal 2018 (April 1 to December 31, 2018)(1) Consolidated Operating Results (cumulative total)
Net
sales
(million yen)

Year-onyearchangeOperatingincome(million yen)(%)

Year-onyearchange(%)

Ordinary
Income(million yen)

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

(million yen)

3Q FY 2018
2,939,182
10.0
170,825(0.9)
201,23818.1
151,060
3Q FY 2017
2,670,820
15.5
172,318 373.2
170,440 285.7
138,620
Note: Comprehensive income:
119,006 million yen in 3Q FY 2018 (down 23.4%)
155,399 million yen in 3Q FY 2017 (-%)
(2) Consolidated Financial Position
Total assets

Net assets(million yen)(million yen)

(yen)

(%)

9.0
316.3

262.17240.42-Equity capitalratio(%)

End 3Q FY 2018
4,583,513
2,071,687
43.8
End FY 2017
4,440,910
2,009,911
43.9
Note: Shareholders' equity: 2,006,168 million yen as of December 31, 2018
1,949,574 million yen as of March 31, 2018

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

FY 2017
80.00
30.00
50.00
FY 2018
95.00*
45.00
50.00**estimate
Note: Revisions to dividend forecast announced most recently: No

3. Forecasts of Consolidated Financial Results in Fiscal 2018 (April 1, 2018 to March 31, 2019)
Net
sales
(million yen)

Year-onyearchange(%)

Operatingincome(million yen)

Year-onyearchange(%)

Ordinary
income(million yen)

ProfitYear-onYear-onattributable
Net income
year
year
to owners
per sharechangechangeof parent
(yen)
(%)

(million yen)

JGAAP:FY 2018
3,900,000
6.0
190,000 (23.0)
220,000
1.7
160,000
Note: Revisions to consolidated financial results forecasts announced most recently: Yes
Sales
revenue(million yen)

Year-onyearchange(%)

Business
Income*(million yen)

(%)

10.6

277.72

ProfitYear-onYear-on- Profit before Year-onattributable
Net income
year
incomeyear
year
to owners
per sharechangetaxes
changechangeof parent
(yen)
(%)

(million yen)(%)(million yen)(%)

IFRS:FY 2018
3,800,000
233,000
210,000
160,000
277.72
Note: In accordance with JFE Holdings, Inc.’s decision to adopt the optional application of International Financial
Reporting Standards (IFRS), the company will release calculations based on IFRS in addition to forecasts of consolidated
financial results based on Japanese Generally Accepted Accounting Principles (JGAAP). For the fiscal year ending
March 31, 2018 for which JGAAP is being applied, the company has not stated the year-on-year change.
* Business Income: Income that excludes financial income and items with transient nature of importance to the amountfrom profit before income taxes. Representative index of the company’s consolidated results.

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 “Change in Accounting Policies” on page 6 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, 2018: 614,438,399 shares
As of March 31, 2018: 614,438,399 shares
2) Treasury stock at the end of term
As of December 31, 2018: 38,575,878 shares
As of March 31, 2018: 37,919,494 shares
3) Average number of shares during the term (quarterly consolidated cumulative period)
3Q FY 2018: 576,196,515 shares
3Q FY 2017: 576,587,604 sharesThis document is not subject to quarterly review procedures.
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.
2. Notes to the financial results can be viewed at the JFE Holdings website.

Attachments
1. Consolidated Financial Statements and Notes ············································································ 2(1) Consolidated Balance Sheets ···························································································· 2(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ········· 4Consolidated Statements of Income (First Three Quarters) ···················································· 4Consolidated Statements of Comprehensive Income (First Three Quarters) ······························· 5(3) Notes to Consolidated Financial Statements ·········································································· 6Notes Pertaining to the Presumption of a Going Concern ······················································· 6Notes In Case of Significant Changes to Shareholders’ Equity ················································ 6
Change in Accounting Policies ························································································· 6
Additional Information ···································································································· 6
2. Reference··························································································································· 7

11. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheets(million yen)
As of
As of
March 31, 2018 December 31, 2018
Asset
Current assets:
Cash and deposits
Notes and accounts receivable – trade
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 and vehicles, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets:
Investments securities
Shares of subsidiaries and associates
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

2

76,111

86,028855,730
351,961
60,292
438,086
148,125(2,188)
1,928,119

816,801
389,683
92,589478,870
165,394(1,730)2,027,637

699,324489,588513,335
1,702,248
83,724

731,178
490,905
520,369
1,742,453
88,914

325,413
312,880
90,216

298,004
334,482
93,807(1,691)
726,818
2,512,791
4,440,910(1,785)724,5082,555,875
4,583,513

As ofMarch 31, 2018

(million yen)
As ofDecember 31, 2018

471,897285,542
6,000
15,0008,918
402,927
1,190,286

481,822242,625
71,00014,172359,209
1,168,830

80,000944,376
39,348
127,435
49,552
1,240,712
2,430,999

110,000
1,023,356
36,347
127,786
45,504
1,342,995
2,511,825

Shareholders’ equity:
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity

147,143646,639
1,211,796(179,070)
1,826,508

147,143646,648
1,307,061(180,651)
1,920,200

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net asset

91,359(186)
16,2889,791
5,812
123,065
60,3372,009,911
4,440,910

73,590(2,342)
15,810(7,179)6,088
85,96765,5192,071,687
4,583,513

Liabilities
Current liabilities:
Notes and accounts payable – trade
Short-term loans payable
Commercial papers
Current portion of bonds
Provision
Other current liabilities
Total current liabilities
Non-current liabilities:
Bonds payable
Long-term borrowings
Provision
Net defined benefit liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
Net assets3(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
IncomeConsolidated Statements of Income (First Three Quarters)
Through Third
Quarter of
Fiscal 2017

(million yen)Through Third
Quarter of
Fiscal 2018

2,670,820
2,252,113
418,706
246,387
172,318

2,939,182
2,505,028
434,153
263,328
170,825

962
7,482
7,778
15,416

1,306
8,271
36,113
16,262

Total non-operating income

31,63861,954Non-operating expenses:
Interest expense
Loss on retirement of non-current assets
Other
Total non-operating expenses
Ordinary income

9,826
12,357
11,33233,517
170,440

9,446
9,639
12,45531,541
201,238

Extraordinary income:Gain on sales of investment securities
Total extraordinary income

29,26429,264-Extraordinary losses:
Impairment loss
Expenses for treatment of PCB waste
Total extraordinary loss

3,244
3,850
7,094

5,780
5,780

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

192,60949,741
142,868
4,248
138,620

195,457
39,392
156,065
5,004
151,060

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income:Interest income
Dividend income
Share of profit of entities accounted for using equity method
Other

4

Consolidated Statements of Comprehensive Income (First Three Quarters)

ProfitOther comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities 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

5

Through Third
Quarter of
Fiscal 2017
142,868(million yen)Through Third
Quarter of
Fiscal 2018
156,065(3,465)
1,004
(287)
2,033

(17,529)(1,920)(5,267)310

13,246
12,531
155,399(12,651)(37,058)
119,006

150,539
4,859

114,440
4,565

(3) Notes to Consolidated Financial Statements
Notes Pertaining to the Presumption of a Going Concern
There is no item for this period.
Notes In Case of Significant Changes in Stockholders’ Equity
There is no item for this period.

Change in Accounting Policies
Implementation of partial amendments to accounting standards used in the tax effect accounting
system.
Effective from the first quarter of fiscal 2018, JFE Holdings applied revisions to the accounting
standards used in its tax effect accounting system (Corporate Accounting Standard Application
Guideline No.28, February 16, 2018); these amended the way in which temporary differences infuture taxable amounts, such as the stocks of affiliated firms, were handled. These changes wereapplied retroactively; quarterly consolidated financial statements and consolidated financial
statements for the last quarter and for fiscal 2017 were created after application of these changes.
As the result, the balance sheet entry for the previous fiscal year’s other non-current liabilities
decreased by 3,347 million yen.
This also affected the net capital amount shown at the beginning of the previous fiscal year;
retained earnings at the beginning of the previous fiscal year increased by 3,347 million yen.
These changes had no effect on profit before income taxes in the first half of fiscal 2017.

Additional Information
Due to JFE Holdings applying revisions to the accounting standards used in its tax effectaccounting system (Corporate Accounting Standard Application Guideline No.28, February 16,2018) effective from the first quarter of fiscal 2018, deferred tax assets were categorized under“investment and other assets”, and deferred tax liabilities were categorized under “non-current
liabilities”.

6

2. Reference(1) Consolidated Results in First Three Quarters for Fiscal 2018 (JGAAP)(billion yen)

Steel BusinessEngineering Business

FY2017FY2018ChangeFirst Three Quarters(April-December)
1,991.9First Three Quarters(April-December)
2,126.2

First Three Quarters(April-December)
134.3

256.6

317.9

61.3

Trading Business

1,410.5

1,558.6

148.1

Adjustments(988.2)(1,063.6)(75.4)Net Sales

2,670.8

2,939.1

268.3

Operating Income
Non-operating Income(Expenses)

172.3

170.8

(1.5)

(1.8)

30.4

32.2

Steel Business

6.8

150.2

157.0

Engineering Business

6.0

11.8

5.8

Trading Business

26.0

28.4

2.4

Adjustments(11.9)

3.8

15.7

Ordinary Income (Loss)

170.4

201.2

30.8

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

22.1
192.6

(5.7)
195.4

(27.8)
2.8(53.9)(44.3)

9.6

138.6

151.0

12.4

7

(2) Consolidated Earnings Forecasts for Fiscal 2018(billion yen)
JGAAP

Steel BusinessEngineering BusinessTrading Business
Adjustments
Net Sales
Operating Income
Non-operating Income(Expenses)
Steel BusinessEngineering BusinessTrading Business
Adjustments
Ordinary Income (Loss)
Extraordinary Income (Loss)
Profit Before Income Taxes
Tax Expense and Profit (Loss)
Attributable to Non-controlling
Interests
Profit Attributable to Ownersof Parent

IFRS(Reference)
Full-year
forecasts
announced on
October 30,
2018
2,880.0480.0
2,120.0(1,480.0)
4,000.0
220.0

FY2017FY2018ChangeFull year
2,715.4
391.3
1,907.9(1,336.1)
3,678.6
246.6

Full year*
2,830.0480.0
2,050.0(1,460.0)
3,900.0
190.0

Full year*
114.6
88.7
142.1
(123.9)221.4(56.6)(30.3)

30.0

60.3

30.0

198.8
19.3
33.0
(34.9)
216.3

160.0
22.0
35.0
3.0
220.0

(38.8)
2.7
2.0
37.9
3.7

190.0
22.0
35.0
3.0
250.0

(2.9)
213.3

(10.0)
210.0

(7.1)
(3.3)

250.0

(68.7)(50.0)

18.7(75.0)

144.6

160.0

15.4

175.0

FY2018

Steel BusinessEngineering BusinessTrading Business
Adjustments
Sales Revenue
Business Income1 A
Financial Income(Expenses) B
Steel BusinessEngineering BusinessTrading Business
Adjustments
Segment Income A+B
Exceptional Items2
Profit Before Income Taxes
Tax Expense and Profit (Loss)
Attributable to Non-controlling
Interests
Profit Attributable to Ownersof Parent

Full year*
2,830.0480.0
1,090.0(600.0)3,800.0
233.0(13.0)
160.0
22.0
35.0
3.0
220.0
(10.0)
210.0(50.0)
160.0*estimate
1
2

Business Income: Income that excludes financial income and exceptional items from profit before income taxes
Exceptional Items: Items with transient nature of importance to the amount(3) Consolidated Financial Indices
JGAAP

Return on Sales (ROS)1
Return on Assets (ROA)2
Return on Equity (ROE)3
EBITDA4
Debt Outstanding
Shareholders' Equity
D/E Ratio5

Fiscal 2017

Fiscal 2018

Change

5.9%
5.2%
7.6%
388.8 billion yen
1,330.9 billion yen
1,949.5 billion yen
58.1%

5.6%
5.1%
8.1%
410.0 billion yen
1,490.0 billion yen
2,010.0 billion yen
63.9%(0.3%)(0.1%)
0.5%
21.2 billion yen
159.1 billion yen
60.5 billion yen
5.8%

Full-year forecasts
announced on October30, 2018
6.3%
5.8%
8.7%
440.0 billion yen
1,450.0 billion yen
2,055.0 billion yen
60.8%

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
EBITDA = Ordinary income + Interest expenses + Depreciation
5
D/E ratio = Debt outstanding / Shareholders' equity. For debt having a capital component*, a portion of its issue price is deemed to becapital, as assessed by rating agencies.
2*Debt having a capital component (subordinated borrowings)
Borrowing Execution Date
Amount Borrowed
Assessment of Equity Content
June 30, 2016
200.0 billion yen
25%
March 19, 2018
300.0 billion yen
25%(4) Difference between JGAAP and IFRS
(billion yen)

JGAAP
Difference in Awareness and Measurement
Dealings with Agents etc.
Display Change
Financial Income etc.
IFRS

Net Sales / Sales
Revenue
3,900.0

Ordinary Income (Loss) /Business Income
220.0(100.0)03,800.0

13.0
233.0

8

Amount Deemed to be Capital
50.0 billion yen
75.0 billion yen

(5) Crude Steel Production (JFE Steel)
FY 2017

Non-consolidated
Consolidated

1Q
7.12
7.53

FY 2018

Non-consolidated
Consolidated

7.10
7.51

2Q
6.98
7.38

1H
14.10
14.91

3Q
7.23
7.63

6.94
7.33

14.04
14.84

6.39
6.79

4Q
7.14
7.52

2H
14.37
15.15

(million tons)
Full year
28.46
30.06

27.0*
28.5*
*Approximate estimate(6) Shipments (JFE Steel on non-consolidated basis)
1Q

2Q

1H

3Q

4Q

2H

(million tons)
Full year

FY 2017

6.14

6.28

12.42

6.38

6.50

12.88

25.30

FY 2018

6.13

5.93

12.06

6.24

24.30**Approximate estimate(7) Export Ratio on Value Basis (JFE Steel on non-consolidated basis)
1Q

2Q

1H

3Q

4Q

2H

(%)
Full year

FY 2017

42.1

44.2

43.2

45.1

45.9

45.5

44.4

FY 2018

42.4

44.2

43.3

43.5

39*

41*

42*
*estimate(8) Foreign Exchange Rate (Yen/US dollar)
1Q

2Q

1H

3Q

4Q

2H

(JPY/USD)
Full year

FY 2017

111.5

110.9

111.2

112.6

109.7

111.2

111.2

FY 2018

108.1

110.9

109.5

113.4

110*

112*

111*
*estimate(9) Average Selling Price (JFE Steel on non-consolidated basis)
1Q

2Q

1H

3Q

4Q

(thousand yen/ton)
2H
Full year

FY 2017

74.4

73.3

73.8

77.0

76.5

76.8

75.3

FY 2018

79.3

81.9

80.6

82.9

80*

81*

81*
*estimate(10) Engineering Business Orders (including inter-segment transactions)(billion yen)
Field
Environment
EnergyInfrastructure, others
Total

FY2017
234.2
126.9
134.4
495.5

FY2018210.0*
130.0*
160.0*
500.0*

Change(24.2)
3.1
25.6
4.5*estimate(11) Debt Outstanding, Interest Expense, and Cash and Deposits(JFE Holdings, JGAAP consolidated basis)
Debt outstanding
As ofMarch 31, 2018
March 31, 2019
Cash and deposits
As ofMarch 31, 2018
March 31, 2019

Interest expense(billion yen)
1,330.9
1,490.0*

FY 2017
FY 2018(billion yen)
76.1
65.0*

(billion yen)
13.0
13.0*

*estimate9(12) Capital Investment and Depreciation Cost (JFE Holdings, JGAAP consolidated basis)(billion yen)
FY 2017

FY 2018

Capital investment

257.2

270.0*

Depreciation

159.5

180.0*(on construction basis)*Approximate estimate(13) Breakdown of Changes in Ordinary Income (JGAAP)
a. First three quarters of FY 2018, compared to same period of FY 2017
ChangeOrdinary income

30.8

1Q-3Q of FY
2017170.4

(billion yen)
1Q-3Q of FY
2018
201.2

Steel business
-

Cost

0

-

Sales volume and mix(17.0)-

Sales prices and raw materials prices

71.0

-

Metals and materials(42.0)-

Unrealized gains on inventories

Cost reduction 12.0, One-off effectdue to operational troubles (12.0)

11.0- Others
Total steel business(16.2)
6.8

Engineering business, Trading business,
Adjustment

23.9

Increase in depreciation cost, etc

b. FY 2018 forecast, compared to FY 2017
ChangeOrdinary income

3.7

FY 2017(billion yen)
FY 2018

216.3

220.0*

Steel business
-

Cost

0

-

Sales volume and mix(30.0)-

Sales prices and raw materials prices

72.0

-

Metals and materials(55.0)-

Infrastructure maintenance cost

(30.0)-

Unrealized gains on inventories

6.0-

Others(1.8)

Total steel business(38.8)Engineering business, Trading business,
Adjustment

42.6

Cost reduction 20.0, One-off effectdue to operational troubles (20.0)*estimate10c. FY 2018 revised forecasts, compared to previous forecasts
ChangeOrdinary income(30.0)FY 2017(billion yen)
FY 2018250.0

220.0*

Steel business-Cost(15.0)-

Sales volume and mix(20.0)-

Sales prices and raw materials prices(10.0)-

Unrealized gains on inventories

16.0

-

Others(1.0)

Total steel business(30.0)Engineering business, Trading business,
Adjustment0*estimate###11