JFE Holdings, Inc.
Financial Results Briefing for the Fiscal Year Ended March 2022
May 6, 2022

Presentation
Moderator: Ladies and gentlemen, thank you for your patience. We will now begin the Investors Meeting of
JFE Holdings, Inc.
In attendance today are Koji Kakigi, Representative Director, President and CEO, and Toshihiro Tanaka, SeniorVice President. The time allotted is approximately 30 minutes for the presentation and 30 minutes forquestions, for a total of 60 minutes.
Mr. Tanaka, Senior Vice President, will now explain the financial results announced today.

Tanaka: This is Tanaka. We posted the presentation material for today’s Investors Meeting on our website.
I’ll be explaining the details of the material.
Please turn to page four for the financial results. We have summarized the results for FY2021 into a table.
As mentioned at the beginning, despite sharply higher prices for raw materials, metals, and scrap, strong
demand for steel and the result of initiatives to improve sales prices led to a significant increase in profit,
particularly in the Steel business.
If you look at the table on the very left, the column notated (A) shows the results for the previous fiscal year,
FY2020. All the profit items in FY2020 were in the red, but the results have improved significantly in FY2021,

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as shown in the area enclosed in a blue square. Business profit, which is shown in the second line, was
JPY416.4 billion. Profit attributable to owners of parent shown on the very bottom was JPY288 billion. Not
only have we turned profitable from the previous fiscal year, but we also posted the highest profit on record
since the last global financial crisis triggered by the Lehman Brothers collapse.
The same can be said of revenue, which came in at JPY4,365.1 billion, exceeding JPY4,000 billion for the firsttime and reaching a record high.
In column (B), you can find our forecast announced in February. The comparison with the current numbers isrepresented as change (C-B) shown in the very right. As you can see, all the profit lines exceeded our forecast
issued in February, with business profit overshooting by JPY26.4 billion, segment profit by JPY24.8 billion, andprofit attributable to owners of parent by JPY18 billion.

The next page shows the breakdown by segment.
As for the numbers, the segment profit in the Steel business shown in the middle of the page was JPY323.7
billion over the full year, while the segment profit was JPY26 billion in the Engineering business, and JPY55.9
billion in the Trading business. This is the breakdown of profit by segment.

2Here is the status of our cash flow.
On the right side is shown the progress of the debt/EBITDA ratio, and below that is shown the balance of ourinterest-bearing debt. The balance of our interest-bearing debt as of the end of FY2020 was JPY1,806.1 billion,
while the balance ended at JPY1,849.4 billion in FY2021, an increase of about JPY40 billion in interest-bearing
debt.
The table on the left organizes our cash inflows and cash outflows. As you can see, net profit increased
significantly, but we made investments exceeding depreciation and amortization. Furthermore, our working
capital balance deteriorated due to rising prices. Although we generated a cash inflow of JPY41 billion throughasset compression, interest-bearing debt ended up increasing by around JPY43 billion.
That said, compared with the forecast announced previously when we said that we expected the interestbearing debt balance to be around JPY1,900 billion, the results improved by approximately JPY50 billion,
indicating that cash flows have improved. Furthermore, if you look at the index on the right side, thedebt/EBITDA ratio came in at 2.8x. Our target of mid-term business plan was around 3x, meaning that wehave cleared the target from the first year.

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Next, I will give a breakdown of the financial results at each operating company.
First, I will explain the results for JFE Steel.
The figures for FY2021 are organized inside the area enclosed in a blue line. As explained earlier, segment
profit came in at JPY323.7 billion over the full year. Crude steel production on a standalone basis amounted
to 25.88Mt, with an export ratio on a value basis of 45.5%. The average sales price was JPY103.7 thousand
per ton. This number compares with around JPY74.8 thousand per ton in the previous fiscal year, an increaseof about JPY29 thousand per ton YoY.

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Here is the breakdown of the factors behind the change in segment profit. First, here is a breakdown of thefactors behind the overshoot in the Steel business segment profit by JPY20.7 billion compared with theforecast in February.
As for the breakdown, crude steel production was forecast to come in around 26.00Mt but ended up being
25.88Mt, meaning that the production volume fell slightly short of the plan. The reason for this shortfall is ourefforts to rationalize production in view of production cuts by automakers growing protracted and the latest
situation regarding steel demand.
The third item is sales and raw materials, or what is referred to as the spread, which improved by JPY10 billion.
This overshoot mainly reflects an improvement in selling prices. The spread improved by JPY10 billion due toan improvement in selling prices both domestically and internationally. On top of that, there was a positive
impact from inventory valuation as shown in the fourth row. This includes the impact from foreign exchange
valuation as a result of the significant depreciation of the yen going into the end of the fiscal year.
Consequently, the results came in higher than the plan.

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The next page shows the factors behind the YoY change in segment profit from FY2020 to FY2021.
Segment profit improved significantly by JPY389.1 billion from a loss in the previous fiscal year. Cost reduction
had a positive impact of JPY30 billion. In terms of volume, crude steel production increased by over 3Mt,
which had a positive impact of JPY60 billion.
The spread had a positive impact of JPY103 billion. From the perspective of sales and raw materials, the selling
price had a positive impact of about JPY570 billion, while the price of raw materials increased by about JPY470
billion. Netting out the positive and negative factors, the spread improved by around JPY100 billion.
On top of this, inventory valuation had a highly positive impact. Meanwhile, others had a negative impact of
JPY31.9 billion, as profit increased at domestic and overseas subsidiaries, but prices rose for metal, scrap, etc.
There were negative and positive factors of about JPY130 billion. While there was a positive impact from
improvements at Group companies, a negative impact came from higher prices of metals, etc. As a result,segment profit improved by JPY389 billion in total.

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Next is JFE Engineering.
Demand was robust at JFE Engineering. Orders continued to trend at high levels, with orders for the current
fiscal year coming in at JPY505.8 billion. Segment profit was JPY26 billion, achieving higher profit for the fourthconsecutive year.
Compared to our previous forecast in column (B), order fell short of our forecast of JPY530 billion, coming in
at JPY505.8 billion. This was attributable to the delay of bid solicitation of overseas projects. These orders aremainly from Europe, where the periods of conclusion of contract have been pushed back from FY2021 to
FY2022. These delays will not have a material impact on results in the future.

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Next is JFE Shoji. Likewise, here is a comparison of the results for the current fiscal year versus the previous
forecast and the results for the previous fiscal year.
JFE Shoji posted an increase in revenue and profit due to recovery of steel demand and strong steel market
prices, as also mentioned in the section for JFE Steel. In particular, profit in North America, mainly subsidiaries
in the US such as Kelly Pipe, increased significantly. Segment profit came in at JPY55.9 billion, a record high.
The result exceeded our previous forecast announced in February by JPY2.9 billion. The overshoot was
attributable to a positive boost from the spread in the North America business compared to our assumption
in February.

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Next, I will explain about dividends.
We plan to distribute a year-end dividend of JPY80 per share, for an annual dividend of JPY140 per share. Thisis the same as what we announced in February, and this is the amount that will submitted in our proposal at
the Annual General Meeting.

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Next is our outlook for FY2022.
Our earnings forecast is organized on this page. As you know, the global economy is highly uncertain due tothe growing tensions in Ukraine.
In particular, prices of the main raw materials used in the Steel business have continued to fluctuate wildly inthe high price range. Furthermore, prices of all kinds of commodities have continued to rise, including
ferroalloys and energy. In conjunction with these factors, we have decided to leave the consolidated earnings
forecast for FY2022 undecided, as we consider it difficult to calculate a reasonable forecast at this time, given
the uncertainty of future steel price trends.

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Although the earnings forecast itself has not yet been determined, I would like to provide some explanationof the current business environment and other factors.
The first is the domestic business environment for the Steel business. We believe that the speed of recovery
in automobile production, which had been restrained by constraints on the supply of semiconductors andother components, is recovering gradually, but its speed is sluggish. Activity levels in other sectors haveremained firm against a backdrop of economic recovery. Overall, we believe that supply and demand willtighten again in 2022.
Meanwhile, overseas, we believe that demand for steel products will continue to recover as the economy
recovers. We are assuming that construction demand will recover as COVID-19 peaks out, and that the
manufacturing industry will also recover as the supply constraints on parts gradually dissipate. On the other
hand, we are concerned about the situation in Ukraine and how it will turn out.
Furthermore, regarding COVID-19, the risk of resurgence both domestically and internationally still exists,
especially with the massive lockdown in China, including Shanghai. There is a great deal of uncertainty about
how this will affect us in the future, and we believe we need to look closely at the impact.

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There are also some trends in the prices of our main raw materials.
For iron ore, we think the current high price range will continue for the time being, as China will continue tolimit its annual crude steel production this year. In any case, it is up to China, and we need to keep a close eyeon the trend.
With regard to coking coal, market conditions have fluctuated greatly due to economic sanctions in Russia,
the impact of COVID-19, and China's policies, etc. Frankly, we believe it is extremely difficult to formulate
assumptions for 2022 at this point.
For the time being, we believe that the current historically high prices will continue, but that the pricemovements are very rough. Yesterday, compared to the day before that, the price suddenly fluctuated by
USD60, which means that these kinds of movements are happening quite frequently and are very difficult to
read.

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It is under such circumstances that we have drawn out our policy in the Steel business.
First, in terms of selling prices, we have been working on passing through raw material costs to prices as earlyas possible since the previous fiscal year. We will continue these efforts and accelerate our activities to make
improvements. We have already rolled out initiatives such as increasing prices by JPY20,000 to pass throughcosts to selling prices in response to the surging price of coking coal.
In addition, as set forth in our 7th Medium-Term Business Plan, we are working to shift focus from quantity
to quality and fully overhaul our sales pricing. As part of these initiatives, we will work even harder to promote
improvement of extra pricing and sound price levels.
On the other hand, although we expect cost reductions of JPY10 billion, the actual cost reduction from ouractions is expected to be JPY23 billion. However, due to the refit of the No. 6 blast furnace in Chiba, we expect
a one-off cost increase of JPY13 billion. Hence, on a net basis, we expect a cost reduction of JPY10 billion atpresent.
In addition, we expect the crude steel production to be approximately 26Mt, but this number is premised on
the continuation of the business environment explained earlier. A change in that premise would also mean achange in the crude steel production volume.
Also, eight blast furnaces are currently in operation. We aim to rationalize our production activity inaccordance with demand as we plan to refit the No. 6 blast furnace in Chiba starting in September.

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Next, moving on to other topics, we announced today that we will restructure our Group company. Specifically,
JFE Steel has decided to turn JFE Container into a wholly-owned subsidiary of JFE Steel.
JFE Container is a publicly listed Group company that manufactures and markets high-quality steel drums andvarious high-pressure gas containers. We have resolved to turn JFE Container into a wholly-owned subsidiaryby way of a share exchange. Through this, the two companies hope to make flexible and prompt decisions
from a medium- to long-term perspective and respond to management issues by maximizing the use of the
management resources of both companies and the group as a whole.
One major effect of making JFE container a wholly-owned subsidiary is to solidify a position in growing markets
and step up efforts to attain a decarbonized and hydrogen-centric society. In addition to expanding the highpressure gas container business, which JFE Container is producing, we will strengthen our group-wide efforts
to provide products and services that contribute to the establishment of a hydrogen supply chain.
Furthermore, we will make the company a wholly owned subsidiary with the aim of achieving sustainablegrowth in the drum business in Japan, as well as synergies in overseas strategy, personnel exchange, capitalefficiency, and reduction of listing costs on the public market.
This concludes my presentation.
Next, Mr. Kakigi, Representative Director, President and CEO of the Company, will explain the progress of ourinitiatives in the Seventh Medium-Term Business Plan.

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Kakigi: This is Kakigi. I will now explain the progress of our initiatives in the Seventh Medium-Term Business
Plan.
First, here is a summary of our key performance targets in the medium term and financial results for FY2021.
As explained earlier, business profit in FY2021 came in at JPY416.4 billion, which is already higher than ourtarget for FY2024. As shown in the bottom row, ROE in FY2021 was 15.7%.
By operating company, the Steel business generated a profit per ton of JPY14,000 in FY2021, which compareswith our FY2024 target of JPY10,000. As I will explain again later, this number includes inventory valuation
gains, so the underlying number is still short of our target. Segment profit in the Engineering business was
JPY26 billion in FY2021, and segment profit in the Trading business reached a record high of JPY55.9 billion as
explained earlier.

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Next, I will explain the progress of initiatives in the Steel business.
As I just stated, profit in FY2021 has been boosted by a one-off effect of inventory valuation gain etc., theprofit per ton was JPY14,000. However, when this inventory valuation gain is excluded, the profit per ton is
JPY6,000. Hence, this figure is JPY4,000 short of our medium-term target.
Below that, it says here that our main measures planned in the first year were implemented as scheduled. As
a result, costs were reduced by JPY30 billion. In terms of our CapEx plan, we steadily implemented the refit of
the blast furnace in Kurashiki. As for the improvement of sales prices, I believe we have achieved a certain
degree of success in quickly reflecting key raw material costs to sales prices and starting extra pricing
improvement activities. However, we are still in the process of implementing these measures.
On the bottom left is our initiatives to achieve the targets in our medium-term plan. As for our efforts to fully
overhaul sales pricing, the sharp rise in various prices at present will require us to further reconsider sales
prices going forward.
As for structural reforms, we are making headway toward the sizable result that will ultimately be achieved
through the shutdown of upstream facilities in the Keihin area in FY2023, and progress is being made towardthat end. As for the enhancement of our product mix, the percentage of highly value-added products was 45%
for the current fiscal year while the percentage was 40% in FY2020, indicating that we are in line with the plan.
The graph on the right shows that our segment profit of JPY323.7 billion in the current fiscal year is around
JPY130 billion on an adjusted basis that excludes inventory valuation gains. Hence, segment profit is about
JPY100 billion short of our segment profit target of JPY230 billion in the final year of the medium-term plan.

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The next page is about our initiatives to shift focus from quantity to quality. Here we have described theprogress of structural reforms and major capital investment projects.
From top to bottom, we will shut down the tin mills in Chiba in September this year. As for the refit of ourblast furnaces, we refit the No. 4 blast furnace in Kurashiki last year, and we plan to refit the No. 6 blast
furnace in Chiba in September this year. A major initiative is the shutdown of upstream facilities and hot rolling
processes in the Keihin area. We plan to implement this in September 2023. This means that the effects ofstructural reforms will emerge in FY2024.
On the very bottom is our CapEx related to improvement of the high-value added product ratio. Last year, weinstalled the No. 7 continuous casting machine in Kurashiki to produce large single-heavy thick plates. In
FY2023, JFE Steel plans to expand its manufacturing facilities for large single heavy plates for offshore wind
power mills.
We issued a press release the other day about using the Keihin site, as we have begun a joint study of ahydrogen and ammonia supply collaboration base at the Keihin waterfront area. ENEOS Corporation, JERA,
and JFE Holdings have begun to discuss the possibility of collaboration in the following items in the Keihinwaterfront area in Kanagawa Prefecture. This project started out with the idea of using the large, deep-waterquay at Ohgishima in Keihin to study a variety of things and also to make use of the hinterland.

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Next, I will explain our initiatives in the Engineering Business.
In the Engineering business, we have received robust levels of orders since the previous fiscal year. We posted
a YoY increase in revenue and profit, with revenue coming in at JPY508.2 billion and segment profit at JPY26
billion, which is the second highest on record. I believe we are making progress in line with the medium-term
plan. There have been some delays or suspensions in overseas projects due to factors such as the impact of
COVID-19 and political changes in Myanmar.
On the right side, we have described our major initiatives in the medium term. In terms of Waste to Resource,
we have significantly expanded our recycling bases across Japan. There are five additional bases that will belaunched. Furthermore, as announced the other day, the West Japan mechanical recycling (MR) center forpet bottles have commenced full operation. This is the first plant manufacturing bottle-to-bottle raw materials
in central and west Japan and will come online in April.
Regarding carbon neutrality, construction of a monopile foundation manufacturing plant for offshore wind
power mills began in May of this year and is scheduled to begin operations in April 2024. We have also decided
to commercialize biomass power generation in Tahara, which was also announced recently. In terms ofcombined utility services, Myoko Green Energy is promoting integrated operation services. We are alsosteadily advancing to strengthen our foundation through M&A and to enter the overseas operations business.

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Next is the Trading business.
The Trading business performed very strongly this year, especially in the US, partly due to the rising steel
prices. In FY2021, segment profit came in at JPY55.9 billion, a record high. While segment profit has
significantly exceeded the medium-term target, this was partly due to the favorable business environment
with rising steel prices. Efforts to promote our priority measures in the medium-term plan are steadily being
implemented on a continuous basis.
The details are explained on the right side. We aim to establish the number one global distribution andprocessing system of electrical steel sheets. We are promoting investments in Japan and overseas to capture
the growing demand for in-vehicle motors, transformers, and the like. We are also expanding our facility at
JSC, which acquired Cogent in Canada. We also decided to expand capacity to manufacture in-vehicle motor
core products at Jiangsu JFE Shoji Steel Products.
Another initiative is to strengthen our supply chain of automotive steel composite materials. We started
operation of the steel processing center adjacent to NJSM, which is being done jointly with Nucor, and we
also decided to expand production capacity in the processing center in China. We have also invested in an
overseas building materials business, and we are steadily taking steps in this direction.

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Next is the progress of investments in GX and DX.
We decided to invest JPY340 billion in green transformation (GX) and JPY120 billion in digital transformation(DX) during the seventh medium-term business plan. Of the adopted investments, slightly less than 40% will
go to GX and the breakdown as described below. A major portion of the investment will go to off-shore wind
power mills related investments, with JPY40 billion going to the monopile plant explained earlier. In the Steelbusiness, we plan to invest JPY13 billion in reinforcing our production capacity of extra-thick steel plate. We
also plan to invest JPY46 billion in expanding our manufacturing facilities for non-oriented electrical steel
sheet used in EVs.
As for the JPY120 billion DX investment plan, in the first fiscal year, we decided to refurbish the steel millsystem in the Kurashiki district and more than 30% of the investment has been implemented. Each operatingcompany is generally investing in line with the plan.

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Next, I will explain our initiatives to establish environmental sustainability regarding the reduction of CO2
emissions toward achieving carbon neutrality.
First, we revised our carbon reduction targets for FY2030, which previously was set at a target of 20% or higher.
In February this year, we added up contributions from various efforts, including the expansion of measures toexisting technology and newly adopted reduction items, resulting in raising our target to 30% or more.
We also created a detailed explanation of our roadmap toward achieving carbon neutrality in 2050, which we
also explained before. I will explain this on the next page.
Our proposal of carbon neutral technologies was adopted by the NEDO Green Innovation Fund Project. We
launched multiple development projects of super-innovative processes.
We also decided to issue transition bonds as the first manufacturing company in Japan. An externalorganization, Japan Credit Rating Agency (JCR), certified that JFE’s business plan for carbon neutrality is
consistent with the Paris Agreement and JFE’s CapEx plan is consistent with its target of carbon emission
reduction.
Below that is a section that explains how JFE has been highly rated in evaluations by external rating agencies.

21This is our roadmap for carbon neutrality.
To give a broad overview, we aim to reduce our CO2 emissions by 18% by the end of FY2024, which is the endof the current medium-term plan, in comparison with the emissions level in FY2013. As explained earlier, we
aim to reduce CO2 emissions by 30% or more in FY2030. We aim to achieve carbon neutrality in 2050.
There are three points that I would like to emphasize. The first point is our carbon recycling blast furnace. We
have further refined the plan and made the schedule more specific. We aim to conduct small blast furnace
tests by 2026. We plan to develop larger-scale technologies thereafter, and in the late 2030s, we will gradually
implement the technologies that have passed our demonstration tests. Hence, we will be implementing thetechnology sequentially, a little earlier than 2050. We have begun such considerations.
The second point is hydrogen-based ironmaking. This initiative is being implemented by a consortium ofcompanies based on the GI Fund. JFE will conduct a small-scale pilot furnace demo in 2024 and 2025 andsegue that into a middle-scale direct reduction demo.
As for the electric arc furnace (EAF), we had left some of our schedule undefined in the past. First, we areplanning to construct a small electric furnace in the Chiba area to test high-grade steel and high-efficiency
manufacturing methods, which will be completed by 2025, and then introduce a high-efficiency large electric
furnace, which will be introduced between 2027 and 2030.
There are also various other explanations such as on ferro-coke. These details are as described on this page.
We plan to invest JPY100 billion in R&D over the next 10 years, and progress is being made in line with the
plan.

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The next page describes the details of the three projects that were adopted in the Green Innovation Fund.
I won’t go over the details, but the technology on the very left is the carbon-recycling blast furnace. This is amethod of converting CO2 generated from the blast furnace into methane and using it repeatedly as a
reductant. As written below, we will start testing a small blast furnace in 2025, establish the technology by
2030, and we will implement it from where we can, as explained earlier.
In the middle is the direct reduction ironmaking method, which, as you can already see, we are working on inthis consortium, and we are going to build a small-scale test furnace.
The highly-efficient large-scale EAF is explained on the right side. As I mentioned earlier, we will start a smallscale test furnace in 2024, and hope to have an actual furnace in operation by 2030.

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Last but not least, we will summarize our key financial and profitability targets for the medium term and our
results in FY2021.
Although some of the details are almost the same as those mentioned at the beginning of this presentation,
ROE and the debt/EBITDA multiple have exceeded the mid-term targets. As mentioned earlier, the annual
dividend for FY2021 is JPY140 per share, which is the highest since JFE's establishment.
In our efforts to achieve carbon neutrality, we will continue to reduce CO2 emissions in our Steel business andcontribute to the reduction of CO2 emissions in society, mainly in the Engineering business.
In addition, as mentioned earlier, earnings for FY2021 include some transitory factors such as inventory
valuation gains and higher overseas steel market prices. In this sense, we would like to accelerate theimplementation of various important measures from FY2022 onward, with the goal of achieving the target for
FY2024.
This concludes my presentation.
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 the information in regard to its
use. The forecasts presented are prepared on the basis of information available at the time of the briefing session andinclude 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 the information contained herein.

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