JFE Holdings’ Financial Results for Fiscal Year 2015
ended 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)

April 26, 2016
Official name:
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Preparation of supplementary materials for quarterly results:
Quarterly results briefing:

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
June 23, 2016
June 24, 2016
June 23, 2016
Yes
Yes
(Figures are rounded down to the nearest million yen.)

1. Consolidated Results in Fiscal 2015 (April 1, 2015 to March 31, 2016)(1) Consolidated Operating Results (cumulative total)
Year-onyearchangeNet
sales(million yen)(%)

Operatingincome(million yen)

Year-onyearchange(%)

Profitattributable toowners ofparentYear-onyearchangeOrdinary
income(million yen)(%)(million yen)

Year-onyearchange(%)

FY 2015

3,431,740(10.9)

90,638(59.3)

64,239(72.2)

33,657(75.8)FY 20143,850,355

5.0

222,59945.2

231,001

33.0

139,357

36.1

Note: Comprehensive income:-97,161 million yen in FY 2015 (-)
281,936 million yen in FY 2014 (up 58.4 %)Net income
per share

Net income
per share(yen)(fully diluted; yen)

ROE
(%)

ROA

ROS

(ordinary income
divided by total
assets; %)(operating income
divided by net
sales; %)FY 2015

58.36

-

1.8

1.4

2.6

FY 2014241.60

-

7.7

5.2

5.8

Note: Equity in earnings of affiliates: -8,821 million yen as of March 31, 2016
18,280 million yen as of March 31, 2015
(2) Consolidated Financial Position
Total assets

Net assets

Equity capital ratio

Net assets per share(million yen)(million yen)

(%)

(yen)

FY 2015

4,234,884

1,857,921

42.6

3,128.36

FY 2014

4,639,412

1,990,023

41.8

3,362.22

Note: Shareholders' equity: 1,804,196 million yen as of March 31, 2016
1,938,938 million yen as of March 31, 2015
(3) Consolidated Statements of Cash FlowsNet cash provided byoperating activities

Net cash used ininvesting activities

Net cash used infinancing activities(million yen)
Cash and cash
equivalents at end of
the year

FY 2015

267,102(137,321)(144,561)

63,873

FY 2014297,380(216,313)(78,247)

83,542

2. Dividends

FY 2014

Dividend per share (yen)Total dividend payout

Dividend payout ratio

Interim(million yen)(consolidated; %)60.00

Year-end

20.00

40.00

FY 2015

30.00
20.00
10.00
FY 2016(forecast)
Note: Total dividend payout for fiscal 2016 is yet to be determined.

Dividend per net
assets (consolidated; %)34,62324.8

1.9

17,308

51.4

0.9

-

3. Forecasts of Consolidated Financial Results in Fiscal 2016 (April 1, 2016 to March 31, 2017)
Given that it is difficult to forecast future trends due to various uncertainties, such as the prices of key raw materials usedin steel production and steel sales prices, the company forecasts ordinary income of approximately 65.0 billion yen in
fiscal 2016, a figure close to that of fiscal 2015, on the premise that main raw material prices and steel selling prices will
maintain their current levels. For details, please refer to “Forecast for Fiscal 2016” on page 3 of the attached document.

Notes
1. Significant changes in subsidiaries during the term (changes in designated subsidiaries resulting in changes in consolidated
structure): No

2. 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

3. Number of outstanding shares (common stock)
1) Outstanding shares at the end of term (including treasury stock)
As of March 31, 2016: 614,438,399 shares
As of March 31, 2015: 614,438,399 shares
2) Treasury stock at the end of term
As of March 31, 2016: 37,714,629 shares
As of March 31, 2015: 37,754,166 shares
3) Average number of shares during the term (quarterly consolidated cumulative period)
FY 2015: 576,740,541 shares
FY 2014: 576,806,134 shares

Status of Quarterly Review
At the point of disclosing these quarterly financial results, the review of consolidated financial statements 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. For a description of the results forecasts, see “(1) Consolidated Business Results” on page 2 of the attacheddocument.
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) Analysis of Financial Position ····························································································· 3(3) Basic Guidelines on Profit Distributions and Dividends for Fiscal 2013 and 2014 ··························· 4
2. Business Plan······················································································································ 5(1) Basic Management Policy ································································································· 5(2) Indicators Serving as Business Targets ················································································ 5(3) Medium- and Long-term Business Strategies ········································································ 5(4) Corporate Tasks Requiring Attention ··················································································· 5
3. Basic Rationale for Selection of Accounting Standards ································································· 8
4. Consolidated Financial Statements··························································································· 9(1) Consolidated Balance Sheets ···························································································· 9(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ········11
Consolidated Statements of Income ·················································································11
Consolidated Statements of Comprehensive Income····························································12(3) Consolidated Statements of Changes in Net Assets ·······························································13(4) Consolidated Statements of Cash Flow ···············································································15(5) Notes Pertaining to the Presumption of a Going Concern ························································16(6) Significant Accounting Policies for Preparing Consolidated Financial Statements··························16(7) Changes in Accounting Policies ·························································································16(8) Notes to Consolidated Financial Statements ·········································································18
Segment Information ····································································································18
Per-share Information ···································································································20
Major Subsequent Events ······························································································20
5. Reference··························································································································21

11. Qualitative Information(1) Consolidated Business Results
The JFE Group, guided by its corporate mission of contributing to society with world-leading
technology, continued to achieve sustainable growth and improved corporate value forshareholders and other stakeholders.
The Japanese economy in fiscal 2015 saw improvements in capital investment and employment
conditions underpinned by strong corporate performance. Economic growth in the latter half of the
fiscal year came to a standstill, however, with slowdowns in emerging economies negatively
impacting production and exports. Meanwhile, the global economy initially got on a recovery trackwith the help of the relatively strong economies of the United States and other developed countries,
but uncertainty persisted, including economic slowdowns in China and other emerging countries in
the latter half of the year, and geopolitical risks in some regions.
The JFE Group made consistent efforts to increase profits. Efforts in Japan included improving its
manufacturing base and leveraging its technological superiority to develop new products and cut
costs. Overseas, the JFE Group made consistent efforts to expand businesses based on a midand long-term strategy. Despite these efforts, the persistent oversupply of steel led to deteriorating
global market conditions, resulting in decreases both in ordinary income and in profit attributable toowners of the parent company, compared to the previous year.
As a result, on a consolidated basis net sales decreased to 3,431.7 billion yen. Operating income
fell to 90.6 billion yen and ordinary income fell to 64.2 billion yen. An extraordinary income of 10.0
billion yen was recorded. Profit before income taxes came to 74.3 billion yen and profit attributableto owners of the parent company was 33.6 billion yen.
By segment, the production of crude steel by the steel business decreased to 29.75 million tons in
the face of domestic inventory adjustment. Net sales dropped to 2,445.1 billion yen due to lower
sales prices resulting from an excessive supply of steel in Asia. Although the business madecontinuous efforts to improve profitability, ordinary income decreased to 27.8 billion yen due to a
decline in sales volume and a deterioration in export conditions.
Engineering business net sales rose substantially, to 397.5 billion yen. This segment posted
ordinary income of 20.0 billion yen, reflecting efforts to ensure profitability of projects awarded inprevious years, as well as sales targeting the environmental and energy sectors, and infrastructure
projects. Orders received, an index of future sales, were 509.4 billion yen. Orders received, net
sales and ordinary income all reached record highs.
The group’s trading business generated net sales of 1,756.4 billion yen and ordinary income of
15.7 billion yen, both decreases on the previous year. JFE Shoji Trade strived to capture domestic
demand for building materials while leveraging its processing and marketing networks outside
Japan for more proactive sales. However, the business was negatively impacted by falling steel
sales prices in domestic and overseas markets, a decline in sales volume caused by a delay ininventory adjustments, and an impairment loss in inventory at a group company in North America.

2Forecasts for Fiscal 2016
The steel business is forecast to remain robust, backed by a recovery in capital investment andurban development projects in connection with the 2020 Tokyo Olympics and Paralympics.
Meanwhile, the outlook in overseas markets remains unclear, although steel prices show signs of
having finally bottomed out and some areas are actually seeing increases. The prices of key raw
materials also need to be monitored to ascertain whether the current upward trend continues. It isdifficult to forecast future trends due to various uncertainties, such as the prices of raw materials
used in steel production, and steel sale prices. If prices were to remain at current levels, however,JFE Steel forecasts ordinary income to decrease by approximately 10.0 billion yen from fiscal 2015.
Although the business environment is harsh, the company will strengthen its profit base by steadily
implementing the measures set out in the fifth mid-term business plan—strengthening the
manufacturing base, improving the product mix and promoting business overseas.
The engineering business is expected to increase sales given the high value of orders placed, andthe trading business is expected to improve profitability overseas. As a result, these twobusinesses are expected to increase their combined ordinary income by 10.0 billion yen. The JFEGroup forecasts consolidated ordinary income to be around 65.0 billion yen, similar to that of fiscal
2015.
(2) Analysis of Financial Position
Total assets at the end of fiscal 2015 (March 31, 2016) decreased from the previous year-end by
404.6 billion yen to 4,234.8 billion yen. This was mainly due to a decrease in the value ofinvestment securities. Liabilities reduced by 272.4 billion yen to 2,376.9 billion yen. Net assets
decreased by 132.1 billion yen to 1,857.9 billion yen, mainly due to a drop in net unrealized gains
on securities.
Net cash provided by operating activities amounted to 267.1 billion yen. Net cash used forinvestment activities totaled 137.3 billion yen, largely for the acquisition of fixed assets. Aggregate
free cash flow totaled 129.7 billion yen of income. Cash flow for financing activities came to 144.5
billion yen, primarily to repay long-term borrowings.
Outstanding debt at the fiscal year-end was 1,379.3 billion yen, down 122.4 billion yen.
Outstanding cash and deposits decreased by 21.2 billion yen to 64.6 billion yen.
Cash Flow and Other Financial Indicators
FY 2011

FY 2012FY 2013

FY 2014

FY 2015

Return on sales (ROS)

1.7%

1.6%

4.7%

6.0%

1.9%

Return on assets (ROA)

1.7%

1.6%

4.5%

5.5%

1.7%

Return on equity (ROE)(2.6%)

2.7%

6.3%

7.7%

1.8%

1,593.6 bil. yen

1,596.3 bil. yen

1,534.0 bil. yen

1,501.7 bil. yen

1,379.3 bil. yen

D/E ratio

83.5%

76.9%

67.9%

59.0%

56.9%

Shareholders’ equity ratio

35.3%

37.9%

40.1%

41.8%

42.6%

Shareholders’ equity ratio at
market prices

23.9%

24.8%

26.4%

33.0%

20.6%

Debt redemption term

14.5 years

5.6 years

6.0 years

5.0 years

5.2 years

Interest coverage ratio

7.2 times

17.6 times

18.0 times

20.3 times

21.1 times

Outstanding debt

3

Notes:• Return on sales (ROS) = Ordinary income/Net sales• Return on assets (ROA) = (Ordinary income + Interest expense)/Total assets1• Return on equity (ROE) = Profit attributable to owners of the parent/Shareholders’ equity2• Outstanding debt = Total amount of borrowings, bonds and commercial paper• D/E ratio = Outstanding debt/Shareholders’ equity. Of bonds having a capital component, 75% of the 300 billion yen issue
price is deemed to be capital, as assessed by rating agencies• Shareholders’ equity ratio = Shareholders’ equity/Total assets• Shareholders’ equity ratio at market prices = Market capitalization3/Total assets• Debt redemption term = Outstanding debt/Operating cash flow4• Interest coverage ratio = Operating cash flow4/Interest expense5
1(Total assets at beginning of term + Total assets at end of term)/2

2(Shareholders’ equity at beginning of term + shareholders’ equity at end of term)/2

3 Market capitalization is calculated as term-end market prices multiplied by term-end outstanding shares (excluding treasury
4
5

stock).
Operating cash flow corresponds to cash flow from operating activities on the consolidated cash flow statement.
Interest expense corresponds to interest payments on the consolidated cash flow statement.

(3) Basic Guidelines on Profit Distribution and Dividends for Fiscal Years 2015 and 2016
Returning profits to shareholders is one of JFE Holdings’ top priorities. The company’s policy is to
distribute dividends vigorously while maintaining a sound and sustainable operational basis for theGroup.
In general, the company’s basic target is a consolidated payout ratio of somewhere between 25%
and 30%. JFE Holdings paid an interim dividend of 20 yen per share for the current fiscal year. In
the second half of the fiscal year, the company saw profitability decline due to a further drop in
steel sales prices and a deterioration of the business environment. JFE Holdings will, however,propose at its forthcoming General Meeting of Shareholders a payment of 10 yen per share for the
year-end dividend to return some profit to shareholders. That will result in a dividend for the year
totaling 30 yen per share.
JFE Holdings is not issuing a dividend forecast for fiscal 2016 at this time, as it is still determining
its earnings outlook.

42. Business Plan
(1) Basic Management Policy(2) Indicators Serving as Business Targets(3) Medium- and Long-term Business Strategies(4) Corporate Tasks Requiring Attention
Business Environment and Related Efforts
The JFE Group expects steady domestic demand generated by the Japanese government’s efforts
to improve the nation’s resilience to natural disasters and by preparations ahead of the 2020 Tokyo
Olympics and Paralympics. Overseas, the group expects increasing demand driven by
infrastructure projects, and by efforts to save energy and make businesses more environmentallyfriendly. However overseas businesses also face a harsh business environment due to a widening
demand-supply gap in the global economy and falling prices of natural resources, both caused byslowdowns in emerging economies, and due to volatile exchange rates and geopolitical risks invarious regions.
To cope with this business environment, JFE Holdings has been steadily implementing its fifth midterm business plan, a guideline for business operations for the period from fiscal 2015 to fiscal
2017. Leveraging its technological advantages, diverse workforce and comprehensive strengths,
the company will strive to grow sustainably and improve its corporate value by strengthening its
domestic profit base and improving the profitability of overseas businesses.
Goals Set By Fifth Mid-term Business Plan
Steel Business- ROS of 10%
Engineering Business- Net sales of 500.0 billion yen- Ordinary income of 30.0 billion yen
Trading Business- Ordinary income of 30.0 billion yen
Group Financial Position- ROE higher than 10%- Equivalent of A-grade ratings by international credit rating agencies (D/E ratio of
approximately 50%)

Measures to be Taken by JFE Operating Companies
JFE Steel aims to become a global steel supplier that steadily creates new value and grows with its
customers. This will be achieved by enhancing production capabilities, a task that the company isalready engaged in. JFE Steel will satisfy the diverse needs of its customers with world-leading
technology. Service and support will be strengthened through the offering of unified services at
each phase, ranging from manufacturing and delivery to quality assurance, with the aim ofestablishing the JFE brand as its customers’ default choice. Overseas, the company will continue
its efforts to improve the profitability of existing projects and to expand business into new regions
and new business areas.
To establish a structure that can generate stable profits on a mid- and long-term basis, JFE Steel5

will steadily implement a domestic capital investment plan with a value of 650.0 billion yen, as set
out in the fifth mid-term business plan. This includes renewing coke ovens, improving power plant
efficiency and renovating steelworks’ systems. The renewal of coke ovens in Japan will help
steelworks become more competitive, and the renovation of steelworks’ systems will improvebusiness efficiency and create facilities that can respond to customer requests more quickly.
Acceleration of the development of new products and processes for future use will bring further
technological advantages, leading to an increase in sales volume, improvements in the product mix
and cost reductions, and thereby a strengthening of the profit base.
JFE Steel will additionally work aggressively to secure and nurture human resources to enhance its
competitiveness. As a significant generational turnover approaches, the company will takemeasures to ensure technical skills are passed on from senior employees to younger employees.
At JFE Engineering, the total value of orders received remains at record levels. The company isworking steadily to fill these orders, which will contribute to overall financial performance. In the
public works sector, JFE Engineering aims to achieve further growth by implementing a businessmodel for end-to-end participation in projects, from proposing solutions through to actuallyoperating the facilities. The company additionally aims to expand the profit base of its renewableenergy-based power generation business by building a track record in design, procurement andconstruction, and through other business investments. Overseas, JFE Engineering will make fulluse of the corporate resources it has acquired to date, including sales, design, procurement andconstruction bases, to enhance its global engineering capabilities. The company will strive toexpand overseas businesses, predominantly in the areas of environmental energy andinfrastructure, including bridge construction.
JFE Shoji Trade will enhance its role as the core trading entity of the JFE Group, while playing arole as an autonomous trading company. This will increase the trading company’s contribution to
the JFE Group. Overseas, JFE Shoji Trade will enhance its cooperation with JFE Steel to further
synchronize their export strategies. This will increase sales volume and expand local-productionfor-local-consumption-based businesses satisfying local demand. In Japan, the company will strive
to meet demand by offering services combining the capabilities of various JFE group companies.
This includes the demand for steel, which is expected to expand in the run-up to the 2020 Tokyo
Olympics and Paralympics. JFE Shoji Trade will seek to increase its presence by enhancing the
profitability of the projects it has invested in, both in Japan and overseas.
As stated above, the JFE operating companies have been steadily implementing measures toachieve the goals set out in the fifth mid-term business plan. But the environments in which thesteelmaking business operates continue to be harsher than those predicted in the business plan,
given that the widening supply-demand gap triggered by overcapacity in China and other Asian
countries is causing a drop in steel prices. To cope with the current business environment, JFE
Holdings is renewing various facilities, in particular steelmaking facilities in the upstream process.
This will have a significant positive impact on the company’s mid- and long-term competitivenessand improve its manufacturing capabilities. JFE Holdings will continue to strengthen its
manufacturing base to further cut costs and to ensure stable supplies. The company will
additionally invest aggressively in business resources that facilitate the development of new
products and process technologies. This will help maintain and extend JFE’s technologicalsuperiority and create a structure that can generate stable profits on a mid- and long-term basis.
The necessary funds for these actions will be secured by asset compression and other measures.
6

Returning profits to shareholders is one of JFE Holdings’ top priorities. The company is making
dividend payment proactively, with the aim of maintaining its dividend payout ratio at somewhere
between 25% and 30%.
In October 2015, JFE Holdings established a basic corporate governance policy. This policy isdesigned to guide the company and its group companies to establish the best-possible corporate
governance, helping the companies to grow sustainably, to improve corporate value on a mid- andlong-term basis and to undertake the missions set out in the group’s corporate vision.
JFE Holdings, which is responsible for the JFE Group’s management and corporate governance,
will strive to perform its role more efficiently to help maximize shareholder profit.
To strengthen its trust-based relationship with society, the JFE Group will continue to diligently
implement comprehensive compliance measures, environmental initiatives and safety measuresthat support sustainable growth, aiming at achieving maximum corporate value for shareholders
and all other stakeholders.

73. Basic Rationale for Selection of Accounting Standards
The JFE Group is reviewing and evaluating the differences between the International Financial
Reporting Standards (IFRS) and the Japan Generally Accepted Accounting Principles (JGAAP), as
well as the possible effects that adopting the IFRS might have on the Group, and the creation ofsystems to ensure IFRS implementation.

84. Consolidated Financial Statements(1) Consolidated Balance Sheets

As ofMarch 31, 2015

(million yen)
As ofMarch 31, 2016

85,889771,574
357,733
45,798408,871
203,739(2,326)
1,871,280

64,654
720,639311,234
43,657
402,406
166,672(1,434)
1,707,829

410,767
603,538
499,51280,66435,108
1,629,591
83,979404,636
606,546497,285
85,981
32,736
1,627,186
81,403

970,250
13,231
77,231(6,152)
1,054,560
2,768,131
4,639,412

749,177
9,103
64,705(4,521)
818,465
2,527,054
4,234,884

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:
Buildings and structures, net
Machinery and equipment, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets:
Investments in securities
Net defined-benefit assets
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

9As ofMarch 31, 2015

(million yen)
As ofMarch 31, 2016

469,107
288,004
80,000378,540
1,215,653

422,331353,382
36,00020,000326,471
1,158,185

Corporate bonds

145,000

125,000

Long-term borrowings

988,756

844,990

Deferred tax liabilities on revaluation reserve

9,774

9,121

Allowance for losses on specific business

24,112

21,402

Net defined-benefit liabilities

119,331

125,283

Other146,760

92,9791,433,735

1,218,776

2,649,388

2,376,962

Common stock

147,143

147,143

Capital surplus

647,121646,380

1,066,517

1,065,037(179,430)(178,654)

1,681,350

1,679,906

194,733

101,709(535)(3,119)15,654

16,328

41,107

14,503Liabilities and shareholders' equity
Current liabilities:
Notes and accounts payable
Short-term borrowings
Commercial paper
Current portion of corporate bonds
Other current liabilities
Total current liabilities
Long-term liabilities:

Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity:

Retained earnings
Treasury stock, at cost
Total shareholders’ equity
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

10

6,626

(5,130)257,587

124,290

51,08553,724

1,990,023

1,857,921

4,639,412

4,234,884

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
IncomeConsolidated Statements of Income
Fiscal 2014

(million yen)
Fiscal 2015

3,850,355
3,312,981
537,373
314,774
222,599

3,431,740
3,017,757
413,982
323,343
90,638Non-operating income:Interest income
Dividend income
Foreign currency exchange gain
Rent receivable
Equity in earnings of affiliate
Other
Total non-operating income

1,078
10,544
12,267
7,516
18,28014,83964,527

1,190
10,438
7,318
16,65135,598Non-operating expenses:
Interest expense
Loss on disposal of fixed assets
Equity in loss of affiliates
Other
Total non-operating expenses

14,532
15,263
26,32956,125

12,27914,446
8,821
26,44961,996

Ordinary income

231,001

64,2394,134
8,495
12,63015,09015,09012,162
4,776
16,939

4,993
4,993

Profit before income taxes

226,692

74,337

Income taxes
Current
Deferred
Total income taxes
ProfitProfit attributable to non-controlling interests

34,93647,642
82,579144,112
4,754

21,62915,05436,68437,652
3,995

Profit attributable to owners of parent

139,357

33,657

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

Extraordinary income:
Profit on sales of property, plant and equipment, etc.
Profit on sales of investments in securities
Total extraordinary income
Extraordinary losses:
Impairment loss
Loss on liquidation of subsidiaries and affiliates
Total extraordinary loss

11

Consolidated Statements of Comprehensive Income
Fiscal 2014

(million yen)
Fiscal 2015

144,11237,65290,808(90,438)

Deferred gains on hedges(232)(2,429)

Revaluation reserve for land

1,012

648

Translation adjustments

12,712(12,208)

11,905(11,967)

21,617(18,418)

137,823(134,814)

281,936(97,161)

275,304(99,629)

6,631

2,467

ProfitOther comprehensive income:Net unrealized gains on securities

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 interests12(3) Consolidated Statements of Changes in Net Assets
Fiscal 2014

(million yen)

Shareholders’ equity
Common stock
Balance at beginning of
period- Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during current
period- Dividends- Profit attributable to ownersof parent- Acquisition of treasurystock- Disposal of treasury stock- Decrease by change inconsolidation scope- Change in treasury sharesof parent arising fromtransactions with noncontrolling shareholders- Transfer from land
revaluation account- Net changes of items otherthan shareholders’ equity
Total current changes
Balance at end of period

147,143

Retained earnings

647,121

Treasury stock,at cost965,204

Total(178,977)

1,580,491(14,867)
147,143

647,121(14,867)

950,337(178,977)

1,565,623(23,086)(23,086)

139,357

139,357

(16)

(498)

(498)

45

29

(63)

(63)

-

-

(11)

147,143

Net
unrealized
gains onsecurities
Balance at beginning of
period- Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during current
period-Dividends- Profit attributable to ownersof parent- Acquisition of treasury
stock

Capital surplus

102,574

647,121116,179
1,066,517

Accumulated other comprehensive income
Accumulated
adjustments
Deferred
Revaluation
Translation
forearnings on reserve foradjustments
retirement
hedgeslandbenefit(411)

14,541

(11)

9,949

(5,024)(452)(179,430)

Total

121,628

115,727
1,681,350

Noncontrollinginterests

43,810Total current changes
Balance at end of period

1,745,930(14,867)

102,574(411)

14,541

9,949(5,024)

121,628

43,8101,731,063(23,086)
139,357(498)- Disposal of treasury stock- Decrease by change inconsolidation scope-Change in treasury
shares of parent arisingfrom transactions with
non-controllingshareholders- Transfer from land
revaluation account- Net changes of items otherthan shareholders’ equity

Total net
asset

29
(63)

-

(11)
92,159

(123)

1,113

31,157

11,651

135,958

7,275

143,233

92,159194,733

(123)
(535)

1,113
15,654

31,157
41,107

11,651
6,626

135,958
257,587

7,275
51,085258,960
1,990,023

13

Fiscal 2015

(million yen)
Shareholders’ equity
Common stock

Balance at beginning of
period- Cumulative effects ofchanges in accounting
policies
Restated balance

147,143

Treasury stock,at costRetained earnings
1,066,517

647,121

Total
1,681,350(179,430)

147,143

Changes during current
period-Dividends- Profit attributable to ownersof parent- Acquisition of treasurystock- Disposal of treasury stock- Decrease by change inconsolidation scope-Change in treasury
shares of parent arisingfrom transactions with
non-controllingshareholders- Transfer from land
revaluation account- Net changes of items otherthan shareholders’ equity
Total current changes
Balance at end of period

Capital surplus

647,121-

1,066,517(179,430)

1,681,350(34,619)(34,619)

33,65733,657

(527)

(273)

(273)

1,049

521

-

-

(740)

(740)

10

10

-

(740)

(1,479)775(1,444)

147,143646,380

1,065,037(178,654)

1,679,906

Accumulated other comprehensive incomeNet
unrealized
gains onsecurities
Balance at beginning of
period- Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during current
period-Dividends- Profit attributable to ownersof parent- Acquisition of treasurystock

194,733

Accumulated
adjustments
Deferred
Revaluation
Translation
forearnings on reserve foradjustments
retirement
hedgeslandbenefit(535)

15,654

41,107

6,626

Total

257,587

Noncontrollinginterests

51,085 1,990,023-

194,733(535)

15,654

41,107

6,626

257,587

51,085 1,990,023(34,619)
33,657(273)- Disposal of treasury stock- Decrease by change inconsolidation scope- Change in treasury sharesof parent arising fromtransactions with noncontrolling shareholders- Transfer from land
revaluation account- Net changes of items otherthan shareholders’ equity-Total current changes
Balance at end of period

Total net
asset

521
-

(740)

10
(93,023)(2,584)673(26,604)(11,757)(133,296)

2,639(93,023)
101,709(2,584)(3,119)673
16,328(26,604)
14,503(11,757)(5,130)(133,296)
124,2902,639 (132,102)
53,724 1,857,921

14(130,657)

(4) Consolidated Statements of Cash Flow(million yen)
Fiscal 2014

Fiscal 2015

Cash flows from operating activities:
Profit before income taxes

226,692

74,337

Depreciation and amortization

176,017

177,946

Changes in allowance(2,772)(15,142)Interest and dividend income(11,623)(11,628)

Interest expense

14,532

12,279Changes in notes and accounts receivable(105,365)

50,355

Changes in inventories(27,866)

52,960Changes in notes and accounts payable

61,020(24,064)

Other(2,111)(16,989)

Sub total

328,524300,053

Interest and dividend income received

18,396

17,244

Interest paid

(14,684)(12,673)

Income taxes paid

(34,856)(37,521)

Net cash provided by operating activities

297,380

267,102

Payments for purchase of property, plant, equipment and intangible assets(220,809)(205,992)

Proceeds from sales of property, plant, equipment and intangible assets

17,2394,155

Purchase of investment securities(5,491)(29,874)

Proceeds from sales of investments in securities

23,65550,051-

30,240Other(30,908)

14,097

Net cash used in investing activities(216,313)(137,321)

6,227(6,895)

Changes in commercial paper(22,998)

36,000

Proceeds from long-term borrowings

206,429

115,249

Repayments of long-term borrowings(182,113)(182,428)

Issuance of corporate bond

20,000-

Redemption of corporate bonds(80,000)(80,000)

(483)

(258)

Payments for dividends by parent company(23,034)(34,551)

Other(2,275)

8,322

Net cash used in financing activities(78,247)(144,561)

Cash flows from investing activities:

Proceeds from capital reduction

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

Acquisition of treasury stock

Effect of exchange rate change on cash and cash equivalents

15,247(6,038)Net increase (decrease) in cash and cash equivalents

18,066(20,819)

Cash and cash equivalents at beginning of year
Changes in cash and cash equivalents by newly consolidated or deconsolidated
subsidiaries
Cash and cash equivalents at end of year

62,31883,542

3,157

1,150

83,542

63,87315

(5) Notes Pertaining to the Presumption of a Going Concern
There is no item for this period.
(6) Significant Accounting Policies for Preparing Consolidated Financial Statements
Changes in consolidation scope and application of the equity methoda) Number of consolidated subsidiaries: 322
Added:
4
Excluded:
10b) Companies accounted for by the equity method: 62
Added:
2
Excluded:5
Except for “Changes in consolidation scope and application of the equity method” above and in (7)below, items are omitted for any information that did not change significantly in the period since theannual securities report was submitted on June 25, 2015.

(7) Changes in Accounting Policies
Application of the Accounting Standard for Business Combinations
Effective fiscal 2015, JFE Holdings began applying the Revised Accounting Standard for Business
Combinations (Accounting Standards Board of Japan [ASBJ] Statement No. 21 of September 13,
2013, hereinafter referred to as the Business Combinations Accounting Standard), the Revised
Accounting Standard for Consolidated Financial Statements (ASBJ Statement No. 22 of September
13, 2013, hereinafter referred to as the Consolidation Accounting Standard), 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 wereadopted to change the method of accounting and thereby record as a capital surplus any
difference arising from changes in equity in subsidiaries that remain under the control of 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 quarterof fiscal 2015, the accounting method has been changed to reflect the adjustments to the allocatedamount of acquisition costs in the finalization of provisional accounting treatment in the
consolidated financial statements for the quarter containing the date of the combinations. In
addition, 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 in presentation,
consolidated financial statements have been reclassified for the fiscal year ended March 31, 2015.
To apply the accounting standards for business combinations effective the beginning of fiscal 2015,
the transitional treatment as prescribed in Article 58-2 (4) of the Business Combinations AccountingStandard, Article 44-5 (4) of the Consolidation Accounting Standard and Article 57-4 (4) of theBusiness Divestitures Accounting Standard was applied.
As a result, both ordinary income and profit before income taxes for fiscal 2015 increased by 740
million yen.
In the Consolidated Statements of Cash Flows for fiscal 2015, cash flows related to an acquisition16

or sale of ownership interests in subsidiaries that does not result in a change in the scope of
consolidation are recorded under “Cash flows from financing activities.” Cash flows relating to
expenses incurred in connection with the acquisition of ownership interests in subsidiaries that
does result in a change in the scope of consolidation, or expenses incurred in connection with theacquisition or sale of equity in subsidiaries that does not result in a change in the scope of
consolidation, are recorded under “Cash flows from operating activities.”
The capital surplus as of the end of fiscal 2015 decreased by 740 million yen. Net income pershare for fiscal 2015 increased by 1.28 yen.

17

(8) Notes to Consolidated Financial Statements
Segment Information
1. Segment Information
I. Previous fiscal year (April 1, 2014 to March 31, 2015)① Overview
The Group organized under JFE Holdings executed commercial activities through threeoperating companies—JFE Steel Corporation, JFE Engineering Corporation and JFE
Shoji Trade Corporation—in accordance with the characteristics of their respective
businesses. Consolidated reporting segments, one for each operating company, werecharacterized by their constituent products and services.
Each segment had its own respective products and services. The steel business handled
various steel products, processed steel products and raw materials, and provided
transportation and other related businesses, such as facility maintenance and construction.
The engineering business handled engineering in the fields of energy, urban environments,
recycling, steel structures and industrial machines. The trading business purchased,
manufactured and distributed steel products, raw materials for steel production,
nonferrous metal products, and food, etc.
② Calculation methods for each reporting segment’s net sales, profit (loss), assets, etc.
Profits for each reporting segment shown below are ordinary income. Inter-segment
transactions are those conducted between companies at market prices.
③ Net sales, profit (loss), asset and other categories(million yen)
Reporting segment
Steel-Sales to externalclients-Internal sales ortransfer among
segments
Net sales

Engineering

Trading

Total

Adjustments

Amount inconsolidated statement

1,857,878

359,007

1,633,469

3,850,355-

3,850,355

1,015,961

8,380

301,001

1,325,343(1,325,343)-

2,873,839

367,388

1,934,470

5,175,698(1,325,343)

3,850,355

Profit188,574

18,025

24,668231,267(266)

231,001

Assets3,911,913

396,075

701,768

5,009,757(370,345)

4,639,412-Depreciation-Depreciation of
goodwill-Interest revenue

164,738

6,104

5,167

176,010

6

176,017

124

507

155

788

-

788

1,043

120

403

1,567

(489)

1,078

-Interest expense-Equity method
investment gain
-Investment in equity
method affiliates-Increased amountof tangible andintangible assets

13,130207

2,258

15,595(1,063)

14,532

14,58616539

15,142

3,137

18,280355,458

6,709

12,779374,947

59,764

434,712207,286

12,366

6,249

225,9020

225,902

Others:18

II. Current fiscal year (April 1, 2015 to March 31, 2016)① Overview
The Group organized under JFE Holdings executed commercial activities through threeoperating companies—JFE Steel Corporation, JFE Engineering Corporation and JFE
Shoji Trade Corporation—in accordance with the characteristics of their respective
businesses. Consolidated reporting segments, one for each operating company, werecharacterized by their constituent products and services.
Each segment had its own respective products and services. The steel business produced
and sold various steel products, processed steel products and raw materials, and provided
transportation and other related businesses, such as facility maintenance and construction.
The engineering business handled engineering for energy, urban environments, steel
structures and industrial machines, recycling and electricity retailing. The trading businesspurchased, processed and distributed steel products, raw materials for steel production,
nonferrous metal products, and food, etc.
②Calculation methods for each reporting segment’s net sales, profit (loss), assets, etc.
There is no item for this period.
③Net sales, profit (loss), asset and other categories(million yen)Amount inconsolidated
statement

Reporting segment
Steel

Engineering

Adjustments

Trading

Total-Sales to external clients-Internal sales or transfer
among segments

1,569,518

387,750

1,474,471

3,431,740-

3,431,740

875,655

9,826

281,973

1,167,455(1,167,455)-

Net sales

2,445,173

397,577

1,756,445

4,599,195(1,167,455)

3,431,740

Profit27,817

20,03015,76063,608630

64,239Assets3,596,123

370,767

619,783

4,586,674(351,790)

4,234,884

164,952

7,037

5,950

177,940

5

177,946

Others:-Depreciation-Depreciation of goodwill

119

1,876

1,728

3,724

15

3,739

-Interest revenue

1,051

127

467

1,646

(455)

1,190

-Interest expense-Equity method investment
gain (loss)-Investment in equity method
affiliates-Increased amount of tangible
and intangible assets

11,132320

1,783

13,236(957)

12,279(10,923)295

890(9,737)915(8,821)

272,123

7,028

11,874

291,027

60,765

351,792

197,786

9,001

5,727

212,5140

212,51519Per-share Information
FY 2014

FY 2015

Net assets per share

3,362.22 yen

3,128.36 yen

Net income per share

241.60 yen

58.36yen

Note 1: Adjusted diluted per-share earnings were not listed since there were no diluted shares.
Note 2: Basis for calculations(Yen, unless indicated otherwise)
FY 2014
Total net assets
Amounts deducted from total net
assetsAttributable to:Non-controlling interests portion
Net assets at fiscal year-end
applicable to common shares
Number of common shares at fiscal
year-end used in calculating net assets
per share
Profit attributable to owners of parent
Value not attributed to common shares
Profit attributable to owners of parent
attributed to common shares
Average number of outstanding
common shares during period

FY 2015

1,990,023 million

1,857,921 million

51,085 million

53,724 million

51,085 million

53,724 million

1,938,938 million

1,804,196 million

576,684 thousand shares

576,723 thousand shares

139,357 million

33,657 million--

139,357 million

33,657 million

576,806 thousand shares

576,740 thousand shares

Major Subsequent Events
There is no item for this period.

20

5. Reference(1) Consolidated Results(billion yen)
Fiscal 2014

Fiscal 2015

Net sales

3,850.3

3,431.7(418.6)(10.9%)

Steel businessEngineering businessTrading business
Adjustments and others

2,873.8
367.3
1,934.4(1,325.3)

2,445.1
397.5
1,756.4(1,167.4)(428.7)30.2(178.0)157.9(14.9%)
8.2%(9.2%)-

Operating income
Non-operating income

222.5
8.4

90.6
(26.3)(131.9)(34.7)(59.3%)-

Ordinary Income

231.0

64.2.

(166.8)(72.2%)(85.2%)
11.1%(36.1%)-

Steel businessEngineering businessTrading business
Adjustments and others
Extraordinary profit (loss)
Profit before income taxes
Tax expense and profit attributable
to non-controlling interests
Profit attributable to owners of parent

Change

188.5
18.0
24.6
(0.2)

27.8
20.0
15.7
0.6

(160.7)
2.0
(8.9)
0.8

(4.3)
226.6

10.0
74.3

14.3
(152.3)(87.3)(40.6)

46.7

139.3

33.6

(105.7)

Forecast for
Fiscal 2016

65.0

(67.2%)(75.8 %)

(2) Consolidated Financial IndicesFiscal 2014

Fiscal 2015

1

6.0%

1.9%

(4.1%)

Return on Assets (ROA)2

5.5%

1.7%

(3.8%)

Return on Sales (ROS)

Return on Equity (ROE)3

Change7.7%

1.8%(5.9%)

Debt Outstanding

1,501.7 billion yen

1,379.3 billion yen(122.4 billion yen)

Shareholders' Equity

1,938.9 billion yen

1,804.1 billion yen(134.8 billion yen)

59.0%

56.9%

(2.1%)

D/E Ratio4
1

ROS = Ordinary income / Net sales
ROA = Ordinary income before interest expenses / Total assets (average)
3
ROE = Profit attributable to owners of parent / 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.
221

(3) Crude Steel Production (JFE Steel)
FY 2014

Non-consolidated
Consolidated

1Q
7.14
7.87

2Q
7.35
8.01

1H
14.50
15.88

3Q
6.94
7.61

4Q
7.00
7.56

(million tons)
2H
Full year
13.94
28.44
15.16
31.04

FY 2015

Non-consolidated
Consolidated

6.54
7.19

6.91
7.50

13.45
14.69

6.98
7.57

6.93
7.48

13.91
15.06

(4) Shipments (JFE Steel on non-consolidated basis)

27.36
29.75

1Q

2Q

1H

3Q

4Q

(million tons)
2H
Full year

FY 2014

6.41

6.62

13.04

6.53

6.51

13.04

26.07

FY 2015

5.98

6.39

12.37

6.45

6.56

13.02

25.39

(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

48.6

47.4

44.8

43.3

44.0

45.8

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

122.6

121.8

121.2

117.7

119.5

120.6

(6) Foreign Exchange Rate (Yen/US dollar)(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

77.1

FY 2015

73.5

68.8

71.0

65.1

60.6

62.8

66.8

(8) Engineering Business Orders (including inter-segment transactions)(billion yen)
509.4
614.7

Orders received
Orders backlog

10.9% increase from previous year
19.6% increase from previous year(9) Debt Outstanding, Interest Expense, and Cash and Deposits(JFE Holdings, consolidated basis)
Debt outstanding
As ofMarch 31, 2015
March 31, 2016
Cash and deposits
As ofMarch 31, 2015
March 31, 2016

Interest expense(billion yen)
1,501.7
1,379.3

FY 2014
FY 2015(billion yen)
85.8
64.6

22

(billion yen)
-14.5
-12.2

(10) Capital Investment and Depreciation Cost (JFE Holdings on consolidated basis)(billion yen)
FY 2015
Capital investment

212.5

Depreciation

177.9(on construction basis)(11) Breakdown of Changes in Ordinary Income(billion yen)
ChangeFY 2014

FY 2015

188.5

27.8

ChangeFY 2015

FY 2016

Roughly
unchanged

64.2

65.0*

a. Steel business(FY 2015 compared to FY 2014)- Sales volume, sales prices and raw
materials prices- Cost reductions- Unrealized gains on inventories andothersb. Entire JFE Group(Forecast for FY 2016 compared to FY 2015)- Sales volume and Sales prices and raw
materials prices- Cost reductions- Unrealized gains on inventories andothers- Sub Total of Steel--160.7-120.035.0-75.7-60.0*
30.0*
20.0*-10.0*

Sub Total of Engineering and Trading

10.0**Approximate estimate###

23