February 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 and Dividend Forecasts
JFE Holdings, Inc. announces herewith its revised consolidated financial results and dividend
forecasts, which were initially announced on November 12, 2019 and have now been revised due
to recent trends in business performance.
■ Revised consolidated financial results forecasts
Fiscal 2019 (April 1, 2019 to March 31, 2020)

Revenue(million yen)

Business
profit1

Profitbefore tax(million yen)(million yen)

Profitattributableto ownersof parent(million yen)Previous forecast (A)New forecast (B)Amount of change (B-A)
Change (%)
Reference:
Results FY 2018

Basicearnings
per share(yen)3,730,000
3,720,000(10,000)(0.3)

60,00045,000(15,000)(25.0)

47,00032,000(15,000)(31.9)

33,00013,000(20,000)(60.6)

57.31
22.58

3,873,662

232,070

209,313

163,509283.81

1 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■Notes
JFE Holdings expects full-year business profit to fall below the previously announced forecast
owing to downward revisions concerning its Trading business and equity-method affiliate Japan
Marine United Corporation. Forecasts for Steel and Engineering businesses are unchanged.
Steel business continues to face a tough market environment. Domestic and international
demand remain severe due to the impact of U.S.-China trade tension and other factors. Against
this backdrop, the Company forecasts crude steel production of 2.7 million tons, largely in line withits previous forecast. The forecast for segment profit2 remains in line with the previous forecast at
0.0 billion yen. Although movements in iron ore prices have resulted in improved spreads, theforecast also reflects the negative impact on unrealized gains on inventories and other factors.
Engineering business continues to execute steadily on existing project orders, which are at a highlevel, and the segment profit forecast remains at the previously announced level of 23.0 billion.
In Trading business, the Company now forecasts segment profit of 29.0 billion yen, or 3.0 billion
yen below its previous forecast. The reduction reflects declines in both domestic and international
demand and falling steel prices as a result of the global economic slowdown, including in Japan.
JFE Holdings expects to book an equity-method loss of 16.5 billion yen for its shipbuilding equitymethod affiliate Japan Marine United Corporation owing to losses recorded in conjunction withwork process delays due to bad weather, natural disasters, etc., and increases in materials andequipment costs as well as the impairment of certain facilities, etc.

2 Segment profit, including operating and non-operating profit and loss, used as a benchmark indicator of each segment’s
performance■ Revised dividend forecast
Fiscal 2019 (April 1, 2019 to March 31, 2020)
Dividend per share (yen)End of 1stquarterInterimEnd of 3rdquarterYearendAnnualPrevious forecast(November 12, 2019)-----

Revised forecast

---

0.00

20.00

Dividends in current fiscal year-

20.00-Dividends in previous fiscal
year (ended March 31, 2019)-45.00-50.0095.00■Notes
JFE Holdings regards the return of profits to shareholders as one of its priorities. The Company’s
policy is to actively pay out dividends while also ensuring a sustainable corporate foundation for
the entire Group. Specifically, the Company generally sets dividends based on a consolidated
payout ratio of around 30%.
The Company did not previously disclose a yearend dividend forecast for fiscal 2019, but basedon the above policy and in view of the fiscal 2019 financial results forecast, the Company has
regrettably decided not to implement its yearend dividend policy.
Since the interim dividend has already been paid, the annual dividend is 20 yen per share.
In view of the recent deterioration in business performance and cancellation of the yearend
dividend, the Company will reduce remuneration paid to the president, the vice president andexecutive officers for the time being.