August 12, 2020
Company Name:
Representative:
Contact:

JFE Holdings, Inc. (Code: 5411)
Koji Kakigi, President and CEO
Hidetsugu Tawara, Manager, Public Relations Section
Investor Relations and Corporate Communications Department
Tel: +81-3-3597-3842

To whom it may concern:

Notice of Revised Financial Results Forecasts and Dividend Forecasts
JFE Holdings, Inc. announces herewith its revised consolidated financial results and dividend
forecasts.
■ Revised consolidated financial results forecasts
Fiscal 2020 first half (April 1, 2020 to September 30, 2020)

Revenue(million yen)

Business
profit*Profitbefore tax(million yen)(million yen)

Profitattributableto ownersof parent(million yen)Previous forecast (A)New forecast (B)Amount of change (B-A)
Change (%)
Reference:
FY2019 resultsBasicearnings
per share(yen)

1,460,000-(125,000)-(132,000)-(110,000)-(191.03)

1,871,292

49,06342,782

31,934

55.46

Business
profit*Profitbefore tax(million yen)(million yen)

Profitattributableto ownersof parent

Basicearnings
per share

Fiscal 2020 full year (April 1, 2020 to March 31, 2021)

Revenue(million yen)(million yen)

(yen)

Previous forecast (A)New forecast (B)Amount of change (B-A)
Change (%)

3,170,000-(100,000)-(115,000)-(100,000)-(173.66)

Reference:
FY2019 results

3,729,717

37,899(213,473)(197,744)(343.39)* Profit before tax, excluding financial income and one-time items of a materially significant value, used as a benchmark
indicator of the company’s consolidated earnings.

JFE Holdings announced today its consolidated financial results forecasts for the current fiscal
year ending in March 2021, based on ongoing business trends and currently available informationand expectations. The forecasts could not be released when the company announced its fiscal
2019 results previously due to the difficulty of calculating the impact of COVID-19, particularly inthe steel business. Overall, JFE Holdings expects to post a business loss of 100 billion yen for thefull fiscal year due to reduced demand outlooks in the company’s respective industries as a resultof COVID-19.

Operating results in the company’s three core segments—steel, engineering and tradingbusinesses—are presented below. Gains/losses in segment profit, including financial gains/losses,
are benchmark indicators of each segment’s performance.
In steel business, domestic demand for steel products hit a low point between April and June but isexpected to recover in stages between July and September and into the second half. Demand in
the automotive sector will likely recover and the demand for steel products in the civil engineering
sector is also expected to increase due to seasonal and other factors. Overseas, although theoutlook has become more uncertain due to COVID-19 and heightened tensions between theUnited States and China, a gradual recovery is forecast for the second half due to expectations ofa recovery in the Chinese economy and a bottoming out of automobile sales both in Europe andthe United States. JFE Steel estimates its crude steel output on a non-consolidated basis willamount to approximately 10 million tons in the first half due to a sharp decrease in production, but
the company forecasts output rising to approximately 12 million tons in the second half due torecovered demand. Steel business is forecast to produce a segment loss of 145 billion yen in thefirst half due to decreased production and other factors, but then break even in the second half due
to increased production as a result of recovering demand and deeper cost reductions. For the fullyear, a loss of 145 billion yen is forecast.
In engineering business, revenue is expected to decline due to decreased construction in themarket as a result of COVID-19. Orders, however, are expected to increase due to an increase inlarge projects, mainly environmental and infrastructure projects in the public sector. Segment profitof 21 billion yen is forecast for the full year, down from the previous fiscal year. Even despite theimpact of COVID-19, however, this segment’s profit is expected to exceed 20 billion yen,continuing to generate stable earnings.
In trading business, full-year segment profit of 12 billion yen is forecast, below the previous fiscalyear’s result. The main reasons for this will be significantly decreased demand for steel products,
mainly in the first half, and decreased sales volume due to the global economic slump.
■ Revised dividend forecast
Fiscal 2020 (April 1, 2020 to March 31, 2021)
Dividend per share (yen)End of 1stquarter

InterimEnd of 3rdquarter

Year end

AnnualPrevious forecast(May 12, 2020)

----

-

Revised forecast

-

0.00

-

-

-

Dividends in current fiscal year

-

-

-

Dividends in previous fiscal
year (ended March 31, 2020)

-

20.00

-

0.00

20.00

JFE Holdings, which has not disclosed any dividend forecast for fiscal 2020, has decided that it
unfortunately cannot pay a first-half dividend in view of the company’s consolidated first-quarter
financial results and first-half forecasts. A decision regarding the year-end dividend has been
postponed while the company carefully monitors its ongoing performance.