Message from the President

We will steadily implement
the measures described in ourmedium-term management
plan (JGP2014) and work torecover orders.

Ikuo Sato
Representative Director & President

Overview of FY2012■ Business performance
Our business environment in the fiscal period under review reflected the uncertain
conditions in the global economy as a whole, which was affected by the sluggish
performance of the European economy due to the austerity measures implemented
by various European governments to try and address their debt crisis and also by theslowdown in economic growth in emerging countries such as China and India.
Meanwhile, conditions in the Japanese economy continued to be extremely severe asa result of the slowdown in the global economy and the ongoing appreciation of the yen.
However, supported by expectations for the economic policies of the new government thatwas inaugurated at the end of 2012, toward the end of the term a correction of the strong
yen and an upward trend in share prices were seen.	Amid these conditions, at the JSW Group we have drawn up a medium-term
management plan, under the name of JGP2014, covering three-year period from April 2012
to March 2015. Our twin goals under this plan are to become “the No.1 global monozukuri(manufacturing) corporate group” and “a corporate group with a stable earnings structureand strong financial position.” To achieve these goals, we are implementing as our basic
management policy the following business activities; “1. Grow our products into the global
market leaders,” “2. Expand business operations into growth markets and growth fields,”

2“3. Create global network of monozukuri alliances,” and “4. Strengthen business base.” Inparticular, despite having to battle against the impact of the strong yen and the slowdown
in the global economy, in our Industrial Machinery Products Business we have focused
our energies into further differentiating our technologies from those of our competitors
and into providing products with even more value added and as a result, we were able toachieve our highest ever operating income by segment.	On the other hand, an assumption in our medium-term management plan for ourSteel and Energy Products Business was that demand for our mainstay electric-power andnuclear-power products would bottom out and then start to recover in the second half ofthe fiscal year. However, various governments around the world decided to review theirelectric-power and nuclear-power policies, which delayed this recovery process and as aresult, the point that demand will bottom out and start to recover has been significantly
postponed. To compensate for this development, we concentrated our energies into
technological proposals for clad steel plates and pipes, cost reductions, and into increasingorders for our existing products. Nevertheless, these efforts were not enough to offset theextremely tough operating conditions in this segment and it recorded an operating loss bysegment.
While Industrial Machinery Products Business achieved growth in both sales andincome, these gains were cancelled out by the declines in the Steel and Energy Products
Business and as a result, overall sales were practically unchanged and income decreased.
Similarly, Industrial Machinery Products Business recorded an increase in orders received,
but this was not enough to compensate for the large decline in orders received in the Steeland Energy Products Business, and taken as a whole orders received decreased.	As a result of the above, in FY2012 the JSW Group recorded net sales of ¥220,653
million yen (US$2,346 million, down 0.3% year on year), operating income of ¥16,680
million (US$177 million, down 30.2%), ordinary income of ¥17,108 million (US$181million, down 26.8%), and net income of ¥8,281 million (US$88 million, down 34.2%).
■ Providing a year-end dividend of ¥5
We place great importance on providing our shareholders with stable and sustained
dividend payments and follow a basic policy of paying and increasing dividends based on
earnings in the corresponding fiscal period. We also remain committed to bolstering ourinternal reserves in order to fund the capital expenditure on productivity improvement
and technological development required to ensure our long-term and stable business
operations, as well as to strengthen our financial position.	Based on these considerations, we have decided to pay an annual dividend of ¥10 per
share for the fiscal year under review and as the interim dividend was ¥5, the year-end
dividend was ¥5.
For the next fiscal period, we forecast a full year dividend payment of ¥5, to be paid as
an interim dividend of ¥2.5 and a year-end dividend of ¥2.5.

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Message from the President
Forecasts for fiscal 2013
The global economy is expected to maintain its moderate recovery due to the monetaryeasing measures being implemented by various governments, but there remain many
problems yet to be dealt with, including the danger that the debt crisis in Europe will
reignite and concerns about an economic slowdown and stagnation in emerging countries.
Also, the Japanese economy is expected to gradually recover against the backdrop of theimprovements to the export environment thanks to the correction of the strong yen and theeffects of the Government’s economic and monetary policies, but we cannot ignore the riskthat this recovery will be derailed by a global economic downturn and the direction that
the Japanese economy is headed in remains unclear.	In this kind of environment, sales and income forecasts for the JSW Group in fiscal
2013 are as follows. Following the decline in orders in fiscal 2012, we anticipate a decline
in sales and slumping operations in the Steel and Energy Products Business, while we also
expect that the changes made to the product mix in the Industrial Machinery Products
Business will have an effect on profitability; consequently, the overall forecasts reflect these
extremely tough conditions.	Elsewhere, for our forecasts for orders in fiscal 2013, the slump in demand for electricpower and nuclear-power products, our mainstay products in our Steel and Energy
Products Business, is expected to bottom out and then start to recover in fiscal 2013. Weare also anticipating that our businesses, including the Industrial Machinery Products
Business, will benefit from the correction of the strong yen and the recovery of our relativecompetitiveness and by continuing to steadily implement the measures set out in ourmedium-term management plan (JGP2014), we expect to recover orders.
June 2013

Ikuo Sato
Representative Director & President4