JFE Holdings’ Financial Results in First 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)

July 30, 2015
Official name:
Listings:
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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
August 4, 2015
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 2015 (April 1 to June 30, 2015)(1) Consolidated Operating Results (cumulative total)
Net
sales
(million yen)

Year-onyearchangeYear-onyearchangeOperatingincome(million yen)

(%)

(%)

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

Ordinary
income(million yen)

(%)

(%)

(million yen)(yen)

1Q FY 2015

857,102(7.6)

24,600(21.5)

28,707(17.3)

17,349

11.9

30.09

-

1Q FY 2014

927,640

10.5

31,351

25.0

34,693(1.5)

15,510(32.5)

26.89-

19,628 million yen in 1Q FY 2015 (down 37.3%)
31,316 million yen in 1Q FY 2014 (down 47.7%)

Note: Comprehensive income:(2) Consolidated Financial Position

Total assets

Net assets(million yen)(million yen)

Net assets per share

Equity capital
ratio

(yen)

(%)

End 1Q FY 2015

4,510,827

1,986,536

42.9

3,354.78

End FY 2014

4,639,412

1,990,023

41.8

3,362.22

Note: Shareholders' equity: 1,934,588 million yen as of June 30, 2015
1,938,938 million yen as of March 31, 2015

2. Dividends
Dividend per share (yen)Interim

FY 2014

60.00

20.00

40.00

-

20.00

-

FY 2015 (estimate)
Note:

Year-end

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 2015 (April 1, 2015 to March 31, 2016)
Year-onyearchangeNet
sales(million yen)

1H FY 2015
FY 2015(%)

Operatingincome(million yen)

Year-onyearchange(%)

Ordinary
income(million yen)

ProfitYear-onYear-onNet income
attributable
year
year
to owners
per sharechangechange(yen)of parent(%)(%)(million yen)

1,800,000(2.6)

45,000(45.2)

50,000(45.6)

30,000(42.7)

52.02

-

-

-

-

200,000(13.4)---

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

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 June 30, 2015: 614,438,399 shares
As of March 31, 2015: 614,438,399 shares
2) Treasury stock at the end of term
As of June 30, 2016: 37,772,624 shares
As of March 31, 2015: 37,754,166 shares
3) Average number of shares during the term (quarterly consolidated cumulative period)
1Q FY 2015: 576,675,117 shares
1Q FY 2014: 576,866,292 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.
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 Quarter) ······························································ 7
Consolidated Statements of Comprehensive Income (First Quarter)········································· 8(3) Notes Pertaining to the Presumption of a Going Concern ························································· 9(4) Notes In Case of Significant Changes to Shareholders’ Equity ·················································· 9
4. Reference··························································································································10

11. Qualitative Information(1) Consolidated Business Results
The Japanese economy in the first quarter of fiscal 2015 (ended June 30, 2015) saw a moderate
recovery against the backdrop of renewed capital investment in an improving business climate,stronger employment and rising incomes, although consumption was weak in some sectors. The
economic outlook for overseas markets remained uncertain as the economies of China and otheremerging nations slowed.
On a consolidated basis for the quarter, net sales of 857.1 billion yen decreased 70.5 billion yen
from the year earlier. Operating income of 24.6 billion yen was down 6.7 billion yen and ordinary
income of 28.7 billion yen declined by 5.9 billion yen. Income before income taxes and minority
interests rose 1.1 billion to 28.7 billion yen and profit attributable to owners of parent increased
1.8 billion to 17.3 billion yen, comparing favorably with the year earlier when an extraordinary loss
was recorded.
By segment, steel business posted net sales of 620.8 billion yen, down 82.7 billion yen, the resultof decreased quantities of steel produced and sold amid domestic inventory surpluses and falling
sales prices due to oversupply in Asia. Ordinary income decreased 9.2 billion yen to 21.5 billion
yen, hit hard by the aforementioned production and sales decreases and deteriorating conditions
for exports.
Engineering business net sales rose 8.0 billion yen to 69.4 billion yen. The ordinary loss decreased
to 0.3 billion yen.
Trading business net sales increased 3.0 billion yen to 465.1 billion yen. Ordinary income improved
0.4 billion yen to 5.4 billion yen, mainly due to stronger profitability among overseas steel
processing centers.

(2) Consolidated Results Forecasts
The following are full-year forecasts for each business segment.
In the steel business, the business environment has become harsher than what was initiallyforecast in the beginning of fiscal 2015. The change is due partly to delays in reducing inventories
in Japan and further declines in overseas markets, which reflect China’s economic slowdown andthe related oversupply of steel. JFE Steel now expects to produce and sell smaller amounts ofsteel compared to fiscal 2014, and see sales prices fall as well. Losses on inventory valuation due
to declining prices of principal raw material could also contribute to decreased earnings. Although
JFE Steel aims to maintain profit by enhancing ongoing efforts to cut costs, ordinary income isforecast to decrease to 150.0 billion yen, despite expectations for increased sales volume andrecovered sales prices for certain export products in the second half.
Engineering business is expected to achieve ordinary income of 20.0 billion yen thanks toaggressive efforts to win more orders.
Trading business, faced with a severe environment for steel sales due to domestic inventory2

surpluses and competition overseas with Chinese mills, is expecting ordinary income of 23.0 billion
yen.
Overall, JFE Holdings forecasts its full-year consolidated ordinary income to be 200.0 billion yen,down from its initial forecast of 230.0 billion yen.
The company expects to pay an interim dividend of 20 yen per share based on current income andprofit forecasts. The year-end dividend will be decided once actual performance becomes clearer.

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 months ended
June 30, 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.
These changes have no effect on operating income, ordinary income, income before income taxes
and minority interests for the first quarter of fiscal 2015, or capital surplus at the end of the firstquarter of fiscal 2015.

4

3. Consolidated Financial Statements(1) Consolidated Balance Sheets

As ofMarch 31, 2015

(million yen)
As ofJune 30, 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

585,88976,918771,574
357,733
45,798408,871
203,739(2,326)
1,871,280

661,840
362,761
57,304
414,876
188,997(1,906)
1,760,793

603,538
499,512526,540
1,629,591
83,979600,068
499,554524,177
1,623,801
81,569970,250
90,462(6,152)
1,054,560
2,768,131
4,639,412

962,986
87,705(6,028)1,044,663
2,750,034
4,510,827

As ofMarch 31, 2015

(million yen)
As ofJune 30, 2015

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

410,813247,641
85,99520,00011,401
318,689
1,094,541

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

145,000
981,956
60,922
119,057
122,813
1,429,749
2,524,290

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
647,1211,060,785(179,481)
1,675,567

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

201,927(1,396)
15,65436,022
6,812
259,020
51,9481,986,536
4,510,827

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 Quarter)
First Quarter of
Fiscal 2014

(million yen)First Quarter of
Fiscal 2015

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income

927,640
819,698
107,941
76,59031,351

857,102753,637
103,465
78,86524,600Non-operating income:Interest income
Dividend income
Other
Total non-operating income

271
5,349
9,806
15,427

251
5,842
8,857
14,951Non-operating expenses:
Interest expense
Loss on disposal of fixed assets
Other
Total non-operating expenses

3,503
3,321
5,260
12,084

3,268
3,444
4,130
10,843

Ordinary income

34,69328,707Extraordinary losses:
Impairment loss
Total extraordinary loss

7,001
7,001

-

Income before income taxes and non-controlling interests

27,691

28,707

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

10,977
16,714
1,203
15,510

10,661
18,046696
17,3497

Consolidated Statements of Comprehensive Income (First Quarter)

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

8First Quarter of
Fiscal 2014
16,714(million yen)First Quarter of
Fiscal 2015
18,046

19,211(975)(2,199)
228

6,382
(909)
(2,552)150(1,664)
14,60131,316(1,488)
1,582
19,62830,425890

18,782845

(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 Quarter and Earnings Forecasts for First Half of Fiscal 2015
(billion yen)
FY 2014

FY 2015

Change1Q

1H

Full year

1Q

1H

1Q

1H

703.5

1,424.1

2,873.8620.8

1,260.0(82.7)(164.1)Engineering Business

61.4

144.6

367.3

69.4

160.0

8.0

15.4

Trading Business

462.1

946.2

1,934.4

465.1

980.0

3.0

33.8

Adjustments(299.4)(667.0)(1,325.3)(298.4)(600.0)1.0

67.0

Net Sales

927.6

1,848.03,850.3857.1

1,800.0(70.5)(48.0)

Operating Income

31.3

82.1

222.5

24.6

45.0

(6.7)

(37.1)

Non-operating Income (Expenses)

3.3

9.8

8.4

4.1

5.0

0.8

(4.8)

Steel Business

30.7

77.6

188.5

21.5

38.0

150.0

(9.2)

(39.6)Engineering Business

(1.4)

0.6

18.0

(0.3)

1.0

20.0

1.1

0.4

2.0

Trading Business

5.0

11.4

24.6

5.4

9.5

23.0

0.4

(1.9)

(1.6)

Steel Business

Full year

Full year(38.5)

Adjustments

0.4

2.2

(0.2)

2.1

1.5

7.0

1.7

(0.7)

7.2

Ordinary Income (Loss)

34.6

91.9

231.0

28.7

50.0

200.0

(5.9)

(41.9)(31.0)

Extraordinary Profit (Loss)
Income Before Income Taxes andMinority Interests
Tax Expense and Profit Attributable toNon-controlling Interests

(7.0)

(7.1)

(4.3)

0

0

7.0

7.1

27.6

84.8

226.6

28.7

50.0

1.1

(34.8)(12.1)(32.5)(87.3)(11.3)(20.0)

0.8

12.5

Profit Attributable to Owners of Parent

15.5

52.3

139.3

17.3

30.0

1.8

(22.3)(2) Consolidated Financial Indices1

Return on Sales (ROS)

Return on Assets (ROA)

2

3

Return on Equity (ROE)

Fiscal 2014

1H Fiscal 2015

Change6.0%

2.8%(3.2%)

5.5%

2.5%(3.0%)

7.7%

3.1%(4.6%)

Debt Outstanding

1,501.7 billion yen

1,490.0 billion yen(11.7 billion yen)

Shareholders' Equity

1,938.9 billion yen

1,950.0 billion yen

11.1 billion yen

4

59.0%

58.2%

(0.8%)

D/E Ratio
1

ROS = Ordinary income / net sales
ROA (full year) = Ordinary income before interest expenses / Total assets (average)
ROA (first half) = Ordinary income before interest expenses x 2 / Total assets (average)
3
ROE (full year) = Profit attributable to owners of parent / Shareholders' equity
ROE (first half) = Profit attributable to owners of parent x 2 / 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

FY 2015

Non-consolidated
Consolidated

6.54
7.19

2Q
7.35
8.01

1H
14.50
15.88

7.00*
7.60*

13.50*
14.80*

3Q
6.94
7.61

4Q
7.00
7.56

2H
13.94
15.16

(million tons)
Full year
28.44
31.04

* estimate(4) Shipments (JFE Steel on non-consolidated basis)
1Q

2Q

1H

3Q

4Q

(million tons)
2H
Full year

FY 2014

6.41

6.62

13.04

6.53

6.51

13.04

FY 2015

5.98

6.60*

12.60*

26.07* 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

50*

48*
* 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

124*

123*
* 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

FY 2015

73.5

69*

71*

77.1
* estimate(8) Engineering Business Orders (including inter-segment transactions)
1H FY 2015

(billion yen)200.0*

6.9% decrease from previous year
*estimate11(9) Breakdown of Changes in Ordinary Income for Steel Businessa. First quarter of FY 2015, compared to same period of FY 2014
ChangeOrdinary income- Sales volume, sales prices and raw
materials prices- Cost reductions
-

(9.2)

1Q of FY 2014

(billion yen)
1Q of FY 2015

30.7

21.5

(20.0)
10.0

Others0.8(including exchange rate fluctuations andunrealized gains on inventories andothers)b. FY 2015 (forecast), compared to FY 2014
ChangeOrdinary income- Sales volume, sales prices and raw
materials prices- Cost reductions-(38.5)FY 2014(billion yen)
FY 2015

188.5

150.0*(55.0)
40.0

Others(23.5)*Approximate estimate###

12(including exchange rate fluctuations andunrealized gains on inventories andothers)