JFE Holdings’ Financial Results for First Quarterof Fiscal Year 2019 Ending March 31, 2020
— 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)

August 9, 2019
Official name:
Listings:
Code:
English URL:
Representative:
Contact:

JFE Holdings, Inc.
Tokyo and Nagoya stock exchanges
5411
www.jfe-holdings.co.jp/en
Koji Kakigi, President and CEO
Hidetsugu Tawara, Manager, Public Relations Section,
Investor Relations and Corporate Communications
Department+81-3-3597-3842
August 13, 2019
Yes
Yes

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

1. Consolidated Results in First Quarter of Fiscal 2019 (April 1 to June 30, 2019)(1) Consolidated Operating Results (cumulative total)(Percentages indicate year on year change)
Revenue(million yen)

Business
profit%Profit
Before tax%(million yen)

Profit%(million yen)(million yen)

Profitattributableto ownersof parent%

Comprehensive
income%(million yen)(million yen)

1Q
FY 2019
1Q
FY 2018

927,409(0.1)

927,875-%

30,781 (63.1)

27,514 (65.7)

20,702(64.3)

19,740(65.2)

13,765(71.1)

83,34680,13858,022-

56,790-47,604---

Basic earnings per
share

Diluted earnings per
share

(yen)

(yen)

1Q FY 2019
34.28
34.27
1Q FY 2018
98.51
98.51
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 ofparent(million yen)

Total equity
attributable toowners of parent(%)

End 1Q FY 2019

4,817,752

1,990,811

1,914,477

39.7

End FY 2018

4,709,201

1,991,759

1,926,337

40.9

2. Dividends
Dividend per share (yen)Interim

FY 2018

45.00

50.00

-

20.00

-

FY 2019 (forecast)
Note:

Year-end

95.00

Revisions to dividend forecast announced most recently: Yes
The year-end dividend and the total dividend are not yet determined.

3. Forecasts of Consolidated Financial Results in Fiscal 2019 (April 1, 2019 to March 31, 2020)
Revenue(million yen)

Business
profit%Profit before
tax%

million yen

Profitattributableto ownersof parent%(million yen)Basicearnings
per share

%

(yen)

(million yen)

1H FY 2019

1,870,000-

55,000-50,000-35,000-60.78

FY 2019

3,960,000

2.2

140,000(39.7)

125,000(40.3)

90,000(45.0)

156.29Note: Revisions to consolidated financial results forecasts announced most recently: Yes

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: Yes
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 June 30, 2019: 614,438,399 shares
As of March 31, 2019: 614,438,399 shares
2) Treasury stock at the end of the term
As of June 30, 2019: 38,596,798 shares
As of March 31, 2019: 38,590,471 shares
3) Average number of shares during the term
1Q FY 2019: 575,844,389 shares
1Q FY 2018: 576,515,055 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. As of the Fiscal 2018 under review, the Company adopted International Financial Reporting Standards (“IFRS”) in place ofJapanese generally accepted accounting principles (J-GAAP). Consolidated figures for the First Quarter of Fiscal 2018 aretherefore also presented on an IFRS basis.
2. 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.
3. The supplementary financial data will be 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 (First Quarter)············································· 4(3) Condensed Quarterly Consolidated Statement of Changes in Equity (First Quarter) ······················· 6(4) Condensed Quarterly Consolidated Statement of Cash Flow (First Quarter) ································· 8(5) Notes to Condensed Quarterly Consolidated Financial Statements ············································10Notes Pertaining to the Presumption of a Going Concern ······················································10
Change in Accounting Policies ························································································10
2. Supplementary Information ····································································································1211. Condensed Quarterly Consolidated Financial Statements and Notes(1) Condensed Quarterly Consolidated Statement of Financial Position

As ofMarch 31, 2019(million yen)
As ofJune 30, 2019

AssetsCurrent assets:
Cash and cash equivalents
Trade and other receivables
Contract assets
Inventories
Income taxes receivable
Other financial assets
Other current assets
Total current assets

82,28889,632754,679
124,039
917,812
19,076
4,471
86,2901,988,658

673,938
140,543935,009
29,631
7,820
106,507
1,983,083

Non-current assets:
Property, plant and equipment:
Goodwill
Intangible assets
Right-of-use assets
Investment property
Investments accounted for using equity method
Retirement benefit asset
Deferred tax assets
Other financial assets
Other non-current assets
Total non-current assets

1,835,229
4,445
82,56759,425315,064
16,38036,609360,133
10,6862,720,543

1,825,093
5,090
83,829106,042
59,659319,31115,75431,360373,680
14,847
2,834,669

Total assets

4,709,201

4,817,7522

As ofMarch 31, 2019(million yen)
As ofJune 30, 2019

Liabilities and equity
Liabilities
Current liabilities:
Trade and other payables
Bonds payable, borrowings, and lease liabilities
Contract liabilities
Income taxes payable, etc.
Provisions
Other financial liabilities
Other current liabilities
Total current liabilities

584,939
329,400
59,06016,39914,33699,097
222,705
1,325,938

541,390417,038
72,094
5,870
12,571
105,166
182,842
1,336,973

Non-current labilities
Bonds payable, borrowings, and lease liabilities
Retirement benefit liability
Provisions
Deferred tax liabilities
Other financial liabilities
Other non-current liabilities
Total non-current labilities

1,194,478
133,999
30,4383,550
17,14011,895
1,391,503

1,290,944
135,355
29,8193,607
18,69911,542
1,489,968

Total liabilities

2,717,442

2,826,941

EquityShare capital
Capital surplus
Retained earnings
Treasury shares
Other components of equity
Equity attributable to owners of parent
Non-controlling interests
Total equity

147,143646,793
1,241,420(180,670)
71,6501,926,337
65,422
1,991,759

147,143652,741
1,230,527(180,680)
64,746
1,914,477
76,333
1,990,811

Total liabilities and equity

4,709,201

4,817,752

3

(2) Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly
Consolidated Statement of Comprehensive Income
Condensed Quarterly Consolidated Statements of Income (First Quarter)
First Quarter of
Fiscal 2018
(April 1, 2018 –June 30, 2018)(million yen)First Quarter of
Fiscal 2019
(April 1, 2019 –June 30, 2019)

Revenue
Cost of sales
Gross profit

927,875(783,869)
144,005

927,409(820,106)
107,303

Selling, general and administrative expenses
Share of profit of entities accounted for using equity
methodOther income
Other expenses
Business profit(83,868)(86,519)

16,531
12,253(5,575)
83,346

6,603
11,260(7,866)30,781

Operating profit

83,34630,781

Finance income
Finance costs
Profit before tax

338(3,545)80,138614(3,881)
27,514

Income tax expense
Profit(22,116)
58,022(6,811)
20,702

Profit attributable to
Owners of parent
Non-controlling interests
Profit

56,7901,232
58,022

19,740961
20,702

Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)

98.51
98.51

34.28
34.27

4

Condensed Quarterly Consolidated Statements of Comprehensive Income (First Quarter)

ProfitFirst Quarter of
Fiscal 2018
(April 1, 2018 –June 30, 2018)
58,022(million yen)First Quarter of
Fiscal 2019
(April 1, 2019 –June 30, 2019)
20,702

1,724

(579)

(2,302)(6,706)

576

210

(1)

(7,076)

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(3,847)
(114)

528
(274)

(6,453)(10,416)(10,418)
47,604(114)
139(6,936)
13,765Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income

46,4501,153
47,604

12,561
1,204
13,7655

(3) Condensed Quarterly Consolidated Statement of Changes in Equity
First Quarter of Fiscal 2018 (April 1, 2018 – June 30, 2018)(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

Treasuryshares147,143646,634

1,138,091(179,070)－

Profit

－－56,790－－

Other comprehensive income

－

－

－

－

1,833

(1,918)

Share capital

Balance as of April 1, 2018

113,073

Comprehensive income－－

56,790－

1,833(1,918)Purchase of treasury shares

－

－

－

(17)

－

－

Disposal of treasury shares

－

(0)

－

0

－

－

Dividends－－(28,834)－－－

Share-based payment transactions

－

－

－

－

－

－

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

－

(0)

－

－

－

－

－

－

1,912

－

(1,833)(79)

Transfer to non-financial assets

－

－

－

－

－

－

Other

－

－

－

－

－

－

Total transactions with owners
Balance as of June 30, 2018－

(0)

(26,921)(16)(1,833)(79)

147,143646,634

1,167,960(179,086)－

111,075

Equity attributable to owners of parent
Other components of equity
Exchangedifferences on
Effective
translation of portion of cash
foreignflow hedges
operations
Balance as of April 1, 2018

(1,805)(1,359)Noncontrollinginterests

Total

Total equity

Total

109,907

1,862,707

59,357

1,922,065－－－

56,7901,232

58,022Other comprehensive income(9,788)(466)(10,339)(10,339)(78)(10,418)

Comprehensive income(9,788)(466)(10,339)

46,4501,153

47,604Purchase of treasury shares

－

－

－

(17)

－

(17)

Disposal of treasury shares

－

－

－

0

－

0

ProfitDividends－－－(28,834)(1,542)(30,377)

Share-based payment transactions

－

－

－

－

－

－

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

－

－

－

(0)

0

－

－

－

(1,912)－－－

Transfer to non-financial assets

－

21

21

21

－

21

Other

－

－

－

－

441

441

－

21

(1,890)(28,829)(1,100)(29,930)(11,593)(1,804)

97,6771,880,328

59,4101,939,738

Total transactions with owners
Balance as of June 30, 20186

First Quarter of Fiscal 2019 (April 1, 2019 – June 30, 2019)(million yen)
Equity attributable to owners of parent
Other components of equity

CapitalsurplusRetainedearnings

Treasuryshares147,143646,634

1,241,420(180,670)－

90,730－－(1,302)－－－

147,143646,793

1,240,117(180,670)－

90,730Share capital

Balance as of April 1, 2019
Cumulative effects
accounting policies

ofchangesinRetroactively adjusted balance

Net change infair value ofequityinstruments
Remeasurements
designated asof defined benefit
measured at
plans
fair value
through othercomprehensive
incomeProfit－－19,740－－－

Other comprehensive income

－

－

－

－

(606)

(6,501)

Comprehensive income－－

19,740－(606)(6,501)

Purchase of treasury shares

－

－

－

(11)

－

－

Disposal of treasury shares

－

(1)

－

1

－

－

Dividends－－(28,831)－－－

Share-based payment transactions

－

75

－

－

－

－

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

－

5,873

－

－

－

－

－

－

(498)

－

606

(107)

Transfer to non-financial assets

－

－

－

－

－

－

Other

－

－

－

－

－

－

－

5,947

(29,330)

(10)

606

(107)

147,143652,741

1,230,527(180,680)－

84,121

Total transactions with owners
Balance as of June 30, 2019

Equity attributable to owners of parent
Other components of equity
Exchangedifferences on
Effective
translation of portion of cash
Totalforeignflow hedges
operations
Balance as of April 1, 2019

Noncontrollinginterests

Total

Total equity(16,547)(2,532)

71,6501,926,337

65,422

1,991,759－－－(1,302)－(1,302)(16,547)(2,532)

71,6501,925,034

65,422

1,990,456

Profit－－－19,740961

20,702Other comprehensive income

83

(154)

(7,178)(7,178)242(6,936)Comprehensive income

83

(154)

(7,178)12,561

1,204

13,765

Cumulative effects
accounting policies

ofchangesinRetroactively adjusted balance

Purchase of treasury shares

－

－

－

(11)

－

(11)

Disposal of treasury shares

－

－

－

0

－

0

Dividends－－－(28,831)(2,099)(30,931)

Share-based payment transactions

－

－

－

75

－

75

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

－

－

－

5,873

11,576

17,449

－

－

498

－

－

－

Transfer to non-financial assets

－

(223)

(223)

(223)

－

(223)

Other

－

－

－

－

230

230

－

(223)

275

(23,118)

9,707(13,410)(16,464)(2,910)64,746

1,914,477

76,333

1,990,811

Total transactions with owners
Balance as of June 30, 20197

(4) Condensed Quarterly Consolidated Statement of Cash Flow (First Quarter)
First Quarter of
Fiscal 2018
(April 1, 2018 – June 30,
2018)(million yen)First Quarter of
Fiscal 2019
(April 1, 2019 – June 30,
2019)

Cash flows from operating activities
Profit before tax

80,13827,514

Depreciation and amortization

47,90453,636

Changes in allowance(1,651)(2,443)

Interest and dividend income(5,299)(6,166)

Interest expenses

3,354

3,578

Decrease (increase) in trade and otherreceivables

94,20089,310Decrease (increase) in inventories(31,549)(20,651)

Increase (decrease) in trade and other payables(51,537)(40,401)

Other(28,816)(50,246)

Subtotal

106,744

54,131

Interest and dividends received

7,583

8,663

Interest paid

(3,216)(3,507)

Income taxes paid

(39,090)(16,386)

Cash flows from operating activities

72,02042,900(63,775)(79,916)85

268(3,093)(2,458)

4,846

516

511

5,255

(61,425)(76,335)

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
Proceeds from sale of investments
Other
Cash flows from investing activities8First Quarter of
Fiscal 2018
(April 1, 2018 – June 30,
2018)(million yen)First Quarter of
Fiscal 2019
(April 1, 2019 – June 30,
2019)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

12,273

1,175

Increase (decrease) in commercial papers

8,000

5,999

Proceeds from long-term borrowings

67,43418,307

Repayments of long-term borrowings(80,554)(2,031)

Proceeds from issuance of bonds

20,00060,000(16)(11)

Dividends paid to owners of parent(28,846)(28,849)

Other(3,056)(12,303)

Cash flows from financing activities(4,766)42,287(245)(1,509)Payments for purchase of treasury shares

Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of period

5,583

7,343

75,11782,288Cash and cash equivalents at end of period

80,70089,6329

(5) Notes to the Condensed Quarterly Consolidated Financial Statements
Notes Pertaining to the Presumption of a Going Concern
There is no item for this period.

Changes in accounting policies
Application of IFRS 16 Leases
Effective from the first quarter of the fiscal year ending March 31, 2020, we have adopted IFRS 16 Leases(issued January 2016).
(i) Leases as a lessee
IFRS 16 introduces a single accounting model for a lessee’s leases, rather than classifying them into
finance leases and operating leases. In general under IFRS 16, a lessee is required to recognize aright-of-use asset representing its right to use the underlying leased asset and a lease liability
representing its obligation to make lease payments. However, we use the exemption for short-termleases and leases of low-value assets; instead of recognizing right-of-use assets and lease liabilities
for such leases, it expenses the lease payments on a straight-line basis over the lease term. After
recognizing a right-of-use asset and a lease liability, we subsequently recognize depreciation of theright-of-use asset and interest on the lease liability.
In applying IFRS 16, we use the transition method described in paragraph C5(b) of IFRS 16 and thus
recognize the cumulative effects of initially applying the standard at the date of initial application (April
1, 2019). We have not restated comparative information for the fiscal first quarter under review.
In applying IFRS 16, we selected the practical expedient detailed in paragraph C3 of IFRS 16 for the
purpose of assessing whether a contract is, or contains, a lease and thus continue to use theassessments previously made under IAS 17 Leases and IFRIC 4 Determining Whether an
Arrangement Contains a Lease. For such assessments made on or after the date of initial application,
we apply the provisions of IFRS 16.
(ii) Leases as a lessor
Leases entered into as a lessor are classified as either finance leases or operating leases according
to the substance of the transaction rather than the form of the contract. Assets held under financeleases are presented as receivables in an amount equal to the net investment in the lease.
In the case of subleases, the intermediate lessor classifies the sublease with reference to the right-ofuse asset arising from the head lease.
In the case of operating leases, we record the leased assets on the condensed quarterly consolidated
statement of financial position and recognize lease payments as income on a straight-line basis overthe lease term.
The adoption of IFRS 16 resulted in a 104,408-million-yen increase in total assets, a 105,711-million-yen increase in total
liabilities and a 1,302-million-yen decrease in retained earnings as of the beginning of the fiscal year ending March 31,
2020.
The weighted average of the lessee’s incremental borrowing rate applied to lease liabilities at the date of initial
application (April 1, 2019) is 0.6%.
The following shows the adjustments between total future minimum lease payments under non-cancellable operatinglease agreements as of the end of the fiscal year ended March 31, 2019 disclosed in accordance with IAS 17 and leaseliabilities recognized on the condensed quarterly consolidated statement of financial position at the date of initial
application.

10

Future minimum lease payments under non-cancellable operating lease agreements as of March
31, 2019 (after discount at the incremental borrowing rate)

32,974

Finance lease liabilities recognized as of March 31, 2019

51,375

Operating lease agreements, etc. that are not non-cancellable, recognized as of the dateof initial application

72,738

Lease liabilities recognized on the condensed quarterly consolidated statement of financial
position as of the date of initial application

157,087

We use the following practical expedients in applying IFRS 16.
• We adopt a single discount rate for portfolios of leases that have reasonably similar characteristics• We exclude initial direct costs from the measurement of the right-of-use asset at the date of initial application• We use hindsight when, for example, calculating the lease term for contracts that include an extension or cancellation
optionWith the adoption of IFRS 16, we have renamed “Bonds payable, borrowings, and lease obligations” on the consolidated
statement of financial position for the previous fiscal year as “Bonds payable, borrowings, and lease liabilities”.

11

2. Supplementary Information(1) Consolidated Results in First Quarter and Earnings Forecasts for Fiscal 2019(billion yen)
FY 2018

1Q 3

1H 3

FY 2019

Full year

1Q

1H

FY2019Forecast

ChangeFull year

1Q(May 14)Full year Fully year

1H

Steel Business

693.0

1,402.5

2,830.6666.6

1,400.02,900.0(26.4)

(2.5)

69.4

Engineering Business

92.8

202.1

485.8

113.2

230.0

520.0

20.4

27.9

34.2

Trading Business
Adjustments

287.2

570.6

1,125.8

286.6

553.0

1,200.0(0.6)(17.6)

74.2

ሺ145.3)(282.9)(568.6)(139.2)(313.0)(660.0)6.1(30.1)(91.4)

Revenue
Business profit 1
Finance income / costs

927.8

1,892.3

3,873.6

927.4

1,870.0

3,960.0(0.4)(22.3)

86.4

A

83.3

154.6

232.0

30.7

55.0

140.0

(52.6)(99.6)(92.0)

B

(3.2)

(6.2)

(12.5)

(3.2)

(5.0)

(15.0)

0.0

1.2

(2.5)

64.1

117.3

161.3

14.5

26.0

70.0

(49.6)(91.3)(91.3)

180.0

Segment Profit
Steel Business

105.0

Engineering Business

2.0

7.7

20.1

4.9

9.0

23.0

2.9

1.3

2.9

23.0

Trading Business

10.2

19.3

35.7

7.9

15.0

36.0

(2.3)

(4.3)

0.3

36.0

Adjustments
Total

A+B

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

3.7

3.9

2.3

0.0

0.0

(4.0)

(3.7)

(3.9)

(6.3)

1.0

80.1

148.4

219.5

27.5

50.0

125.0

(52.6)(98.4)(94.5)

165.0

-

-

(10.2)

-

-

-

0.0

0.0

10.2

80.1

148.4

209.3

27.5

50.0

125.0

(52.6)(98.4)(84.3)(23.3)(39.6)(45.8)(7.7)(15.0)(35.0)

15.6

24.6

10.8

Profit Attributable to Owners of Parent
56.7
108.8
163.5
19.7
35.0
90.0
(37.0)(73.8)(73.5)
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.
3
As of Fiscal 2018, the Company adopted IFRS. Consolidated figures of the First Quarter and the First Half of Fiscal 2018 are therefore
also presented on an IFRS basis. Actual results of IFRS for the First Quarter and the First Half of Fiscal 2018 may change dependingon the results of future quarterly reviews.

(2) Consolidated Financial IndicesFiscal 2018

1H Fiscal 2019

Return on Sales (ROS)1

6.0%

2.9%

(3.1%)

Return on Assets (ROA)2

5.0%

2.3%

(2.7%)(5.0%)

Return on Equity (ROE)3

Change

8.6%

3.6%

EBITDA4

428.2 billion yen

166.0 billion yen-

Interest-bearing debt outstanding

1,523.8 billion yen

1,790.0 billion yen

266.2 billion yen**

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

3.6x

5.4x

-

1,926.3 billion yen

1,930.0 billion yen

3.7 billion yen

68.2%

81.0%

12.8%

1

ROS = Business profit / Revenue
ROA (full year) = Business profit / Total assets, ROA (first half) = Business profit x 2 / Total assets
3
ROE (full year) = Profit attributable to owners of parent / Equity attributable to owners of parent
ROE (first half) = Profit attributable to owners of parent x 2 / Equity attributable to owners of parent
4
EBITDA = Business profit + Depreciation and amortization
5
Debt / EBITDA multiple (full year) = Interest-bearing debt outstanding / EBITDA
Debt / EBITDA multiple (half year) = Interest-bearing debt outstanding / (EBITDA x 2)
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.
2* 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
June 30, 2016
200.0 billion yen
25%
March 19, 2018
300.0 billion yen
25%** Impact of application of IFRS 16 Lease
Amount increased at beginning of FY2019
Lease liabilities
105.7 billion yen

12

Amount Deemed to be Capital
50.0 billion yen
75.0 billion yen

(3) Crude Steel Production (JFE Steel)

FY 2018

Non-consolidated
Consolidated

FY 2019

Non-consolidated
Consolidated(million tons)

1Q

2Q

1H

3Q

4Q

2H

Full year

7.10
7.51
7.00
7.36

6.94
7.33
7.00*
7.30*

14.04
14.84
14.00*
14.70*

6.39
6.79

5.88
6.25

12.27
13.04
14.00*

26.31
27.88
28.00**estimate(4) Shipments (JFE Steel on non-consolidated basis)(million tons)

1Q

2Q

1H

3Q

4Q

2H

Full year

FY 2018

6.13

5.93

12.06

6.24

5.48

11.72

23.78

FY 2019

5.85

6.40*

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

(%)

1Q

2Q

1H

3Q

4Q

2H

Full year

FY 2018

42.4

44.2

43.3

43.5

36.0

40.1

41.7

FY 2019

39.9

42*

41*
*estimate(6) Foreign Exchange Rate (Yen/US dollar)(JPY/USD)

1Q

2Q

1H

3Q

4Q

2H

Full year

FY 2018

108.1

110.9

109.5

113.4

110.3

111.9

110.7

FY 2019

110.7

108*

109*

108*
*estimate(7) Average Selling Price (JFE Steel on non-consolidated basis)(thousand yen/ton)

1Q

2Q

1H

3Q

4Q

2H

Full year

FY 2018

79.3

81.9

80.6

82.9

82.0

82.5

81.5

FY 2019

80.4

80*

80*
*estimate(8) Engineering Business Orders (including intersegment transactions, IFRS basis)(billion yen)

Environment
EnergyInfrastructure, others

1H
FY2018
125.0
69.0
77.7

1H
FY2019
90.0*
50.0*
40.0*

Total

271.8

180.0*

Field(35.0)(19.0)(37.7)FY2019Forecast
190.0*
110.0*
150.0*(91.8)

450.0*

Change*estimate13(9) Breakdown of Changes in Segment Profit (IFRS)
a. First quarter of FY 2019, compared to same period of FY 2018(billion yen)
ChangeSteel Business-

Cost
Sales volume and mix

6.0
(6.0)

-

Sales prices and raw materials(15.0)-

Unrealized gains (losses) on inventories
OthersTotal(17.0)(17.6)(49.6)Engineering Business, Trading Business, Adjustment(3.0)

b. FY 2019 (forecast), compared to FY 2018(billion yen)
ChangeSteel Business
-

Cost

60.0

-

Sales volume and mix

30.0

-

Sales prices and raw materials
Unrealized gains (losses) on inventories(93.0)(32.0)-

Materials prices etc.

(15.0)-

Others(41.3)-

Total(91.3)Engineering Business, Trading Business, Adjustment

Cost reductions +38.0, No one-off
effects +22.0 in FY 2018

Increased costs of materials,
distribution, subcontracting, etc.
Increased depreciation costs related toinfrastructure maintenance, groupcompanies, etc.

(3.1)

c. FY 2019 (forecast), compared to previous forecast(billion yen)
ChangeSteel Business-

Sales volume and mix(20.0)-

Sales prices and raw materials(18.0)-

Unrealized gains (losses) on inventories

8.0-

Others

(5.0)

-

Total

(35.0)Engineering Business, Trading Business, Adjustment

(5.0)

###

14

Rise in iron ore market, slump inoverseas market