JFE Holdings’ Financial Results for Fiscal Year 2020
ended March 31, 2021
— All financial information has been prepared in accordance with
International Financial Reporting Standards (IFRS) —(Note: The following is an English translation of an original Japanese document)

May 7, 2021
JFE Holdings, Inc.
Tokyo and Nagoya stock exchanges
5411
www.jfe-holdings.co.jp/en
Koji Kakigi, President and CEO
Hiroki Watanabe, Manager, Public Relations Section
Investor Relations and Corporate Communications
Department+81-3-3597-3842
June 25, 2021
June 28, 2021
June 25, 2021
Yes
Yes
(Figures are rounded down to the nearest million yen)

Official name:
Listings:
Code:
English URL:
Representative:
Contact:
Phone:
Annual shareholders meeting (planned):
Dividend payment starting date:
Scheduled date to submit securities report:
Preparation of supplementary materials on results:
Results briefing:

1. Consolidated Results for Fiscal 2020 (April 1, 2020 to March 31, 2021)(1) Consolidated Operating Results (cumulative total)(Percentages indicate year on year change)
Revenue

Business
profit%(million yen)

Profit before
tax%(million yen)

Profit%(million yen)(million yen)

Profitattributableto ownersof parent%

Comprehensive
income

%

%

(yen)

FY 2020

3,227,285 (13.5)(12,911)-(4,930)-(19,063)-(21,868)-

FY 2019

3,729,717

37,899(83.7)(213,473)-(193,290)-(197,744)

-

(3.7)

Basic earnings per
share

Diluted earnings per
share

(yen)

(yen)

Profit ratio to equity
attributable toowners of parent

63,231 (259,172)

Profit before tax ratio
to total assets

Business profit ratio
to revenue

(%)

(%)

-

(%)

FY 2020(37.98)(37.98)

(1.3)

(0.1)

(0.4)

FY 2019(343.39)(343.39)(11.1)(4.6)

1.0(Reference): Equity in earnings of affiliates:

FY 2020: 14,239 million yen

FY 2019: 8,782 million yen

Note: Business profit is profit before tax excluding financial income and one-time items of a materially significant value.
(2) Consolidated Financial Position
Total assets

Total equity(million yen)(million yen)

Equity attributable toowners of parent(million yen)

Total equity
attributable toowners of parent

Equity attributable toowners of parent per
share

(%)

(yen)

FY 2020

4,654,972

1,760,154

1,679,223

36.1

2,916.37

FY 2019

4,646,120

1,706,552

1,627,026

35.0

2,825.50

Cash and cash
equivalents at end ofyear(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities(million yen)(million yen)(million yen)(million yen)

FY 2020

247,274

ሺ164,221)ሺ30,092)

142,416

FY 2019

261,070

ሺ358,378)

103,900

86,704

2. Dividends
Dividend per share (yen)End on 1stquarter

AnnualInterimEnd on 3rdquarterYearend

Total dividend
payoutDividend
payout ratio(million yen)(consolidated, %)Dividend ratio of
equity attributableto owners ofparent(consolidated %)FY 2019

20.00

-

20.00

-

0.00

11,532-

0.6

FY 2020

10.00

-

0.00

-

10.00

5,765

-

0.3

FY 2021(forecast)

-

-

-

-

-

-

Note: Fiscal 2021 dividends are yet to be determined.

3. Forecasts of Consolidated Financial Results in Fiscal 2021 (April 1, 2021 to March 31, 2022)
Revenue(million yen)%

Business
profitProfit before
tax%

million yen

Profitattributableto ownersof parent%(million yen)Basicearnings
per share

%

(yen)

(million yen)

FY 20213,930,000

21.8

200,000-

190,000-

130,000-

225.78

Notes1. Changes in significant subsidiaries during the term (changes in designated subsidiaries resulting in changes in consolidated
structure): No
2. Changes in accounting policies and accounting estimates
1) Changes in the accounting policies required by IFRS: No
2) Changes in the accounting policies other than 1) above: No
3) Changes in accounting estimates: No
3. Number of outstanding shares (common stock)
1) Outstanding shares at the end of the term (including treasury stock)
As of March 31, 2021: 614,438,399 shares
As of March 31, 2020: 614,438,399 shares
2) Treasury stock at the end of the term
As of March 31, 2021: 38,646,342 shares
As of March 31, 2020: 38,601,655 shares
3) Average number of shares during the term
FY 2020: 575,829,040 shares
FY 2019: 575,854,137 sharesThis report is not subject to auditing by a certified public accountant or an audit corporation.
Explanation of Appropriate Use of Results Forecasts, and Other Matters of Note
1. Forecasts and other forward-looking statements herein are based on information available on the date of publication of thisdocument as well as rational assumptions that we have made regarding certain factors. Actual results may vary significantly fromthese forecasts due to a wide range of circumstances. For a description of the results forecasts, see "1. Qualitative Information(4) Outlook for Fiscal 2021" on Page 3 of the attachments.
2. The supplementary financial data will be disclosed today via TDnet and published on our website.

Attachments
1. Qualitative Information(1) Overview of Business Results(2) Overview of Financial Position(3) Overview of Cash Flow in Fiscal 2020(4) Outlook for Fiscal 2021
2. Basic Rationale for Selection of Accounting Standards
3. Consolidated Financial Statements(1) Consolidated Statement of Financial Position(2) Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income(3) Consolidated Statement of Changes in Equity(4) Consolidated Statement of Cash Flow
(5) Notes to Consolidated Financial Statements
Notes pertaining to the presumption of a going concern
Segment information
Per-share information
Material subsequent events
4. Supplementary Information

1

2
2
3
3
3
3
4
4
6
8
10
12
12
12
14
14
15

1. Qualitative Information(1) Overview of Business Results
JFE Holdings, Inc., guided by its corporate mission of contributing to society with world-leading technology, continued
to achieve sustainable growth and improved corporate value for shareholders and other stakeholders.
Economic conditions during the reporting period were affected by the worldwide COVID-19 pandemic; in particular,
business activities were severely restricted in the first half of the fiscal year. Recovery was seen in exports and personal
consumption in the second half. Overseas, business rebounded fastest in China and recovered or at least bottomed out
in the U.S. and the rest of Asia.
Under the circumstances, JFE, particularly its steel business, steadily strengthened the manufacturing capabilities of
its domestic foundries and factories and steadily improved productivity through digital transformation. The company also
took emergency measures to reduce costs by 100.0 billion yen, restricted capital investment and made efforts toimprove cash flow.
Business profit and profit attributable to owners of the parent company were in the black in the second half due
primarily to recovered production of automobiles, the major source of demand for steel. The first-half slump was sogreat, however, that the fiscal year ended in the red.
Operating results by segment are presented below.
In steel business, levels of activity fell off in many industries, particularly in the first half, resulting in significant
decreases in demand for iron and steel. In response, JFE implemented emergency measures such as temporarily
shutting down two blast furnaces. Consolidated annual crude steel production amounted to 23.96 million tons, down
significantly from the previous fiscal year. Revenue fell significantly to 2,255.2 billion yen as sales dropped dramatically.
A profit was earned in the second half thanks to efforts to thoroughly minimize operational costs by optimizing
production. Also, we captured recovered demand by using data science technology to swiftly restart blast furnaces. In
addition, sales prices rose as demand recovered and export conditions improved. Nevertheless, poor profitability in thefirst half was too large to overcome, so the segment ended the year with a loss of 65.4 billion yen, much worse than in
the previous fiscal year.
In engineering business, corporate acquisitions helped to boost revenue, but the COVID-19 pandemic caused delays
in construction that held down revenue to 485.7 billion yen, a decrease from the prior fiscal year. Despite decreased
revenue, however, efforts to cut costs and maintain profitability resulted in a profit of 24.0 billion yen, up from theprevious fiscal year.
In trading business, demand recovered in the second half and market conditions improved in the U.S. and worldwide
by the end of the fiscal year, enabling profitability to rebound significantly against the first half. However, decreased
demand for steel materials in the first half was huge, so revenue for the full fiscal year came to 932.5 billion yen andsegment profit ended at 20.0 billion yen, both down from the prior fiscal year.
Our equity-method affiliate Japan Marine United Corporation suffered a loss due to low prices amid a sluggish
recovery in the new-ship market as well as delays in business negotiations due to COVID-19. Due to such factors, JFE
recorded an equity-method loss of 4.1 billion yen.
The above results and earnings of the parent combined for consolidated revenue of 3,227.2 billion yen, down from theprior year. The business loss came to 12.9 billion yen, also worse than the prior year. Furthermore, exceptional items
totaling 20.4 billion yen, such as profit on sales of fixed assets, were realized. JFE recorded a loss before tax of 4.9
billion yen and a loss attributable to owners of the parent company of 21.8 billion yen.
Note: Business income (loss) is profit (loss) before tax, excluding financial income and one-time items of a materially significant value.
It is a benchmark indicator of the company’s consolidated earnings. The operating performance of each segment is presented in termsof segment profit, a measure including financial income in business profit. Exceptional items are one-time items of a materiallysignificant value.

2(2) Overview of Financial Position
Total assets at the end of fiscal 2020 (March 31, 2021) increased 8.8 billion yen to 4,654.9 billion yen due primarily to
an increase in trade and other receivables despite a decrease in inventories. Total liabilities decreased 44.7 billion yen
from the previous yearend to 2,894.8 billion yen due mainly to decreases in trade and other payables. Total equity
increased 53.6 billion yen from the previous yearend to 1,760.1 billion yen due to an increase in retained earnings.

(3) Overview of Cash Flow in Fiscal 2020
Cash inflow of 247.2 billion yen from operating activities versus cash outflow of 164.2 billion yen from investment
activities—mainly for purchases of property, plant and equipment, intangible assets, and investment property—resulted
in an aggregate free cash inflow of 83.0 billion yen.
Net cash from financing, due primarily to repayments of long-term borrowings, came to 30.0 billion yen outflow.
Interest-bearing liabilities outstanding at the fiscal yearend fell 8.2 billion yen to 1,806.1 billion yen. The balance of
cash and cash equivalents rose 55.7 billion yen to 142.4 billion yen.
Note: Interest-bearing liabilities are bonds payable, borrowings, and lease obligations.

(4) Outlook for Fiscal 2021
In steel business, we anticipate a continued gradual recovery in domestic demand for steel materials supported byrecovery in the overall economy. The automotive industry, the steel industry’s major source of demand, should provide
increasingly favorable conditions for domestic sales and exports as the COVID-19 crisis subsides. We anticipate
demand for steel materials to be at least roughly to levels in the last half of this fiscal year. Internationally, we see
demand generally recovering against the background of vigorous Chinese demand for steel materials as well as
economic recovery throughout the world. Under the circumstances, JFE Steel’s crude steel production is forecast at
about 26.50 million tons, reflecting an envisioned boost in output from the Kurashiki No. 4 blast furnace in the second
half. Segment profit is expected to amount to around 140.0 billion yen on increased production and sales as well as costsavings realized at new facilities.
In engineering business, the environmental/energy field and the infrastructure (mainly steel structures) field are
expected to remain strong in Japan and overseas. By steadily executing orders in these fields, sales revenue is
expected to increase, based on which we aim to increase segment profit to 25.0 billion yen.
In trading business, we see increasing activity in the Japanese market for steel materials, including in automobiles.
Internationally, we anticipate recovering demand in the North America. By firmly seizing these demands, we forecast
segment profit rising to 27.0 billion yen.
Overall, we forecast consolidated business profit of 200.0 billion yen.

2. Basic Rationale for Selection of Accounting Standards
JFE voluntarily adopted IFRS starting with full-year results for the fiscal year that ended on March 31, 2019. Since JFE
does business globally, adopting IFRS helps to improve the international comparability of its financial statements in capital
markets and improve group management based on standardized accounting methods.

33. Consolidated Financial Statements(1) Consolidated statement of financial position(million yen)
As ofMarch 31, 2021

As ofMarch 31, 2020
AssetsCurrent assets
Cash and cash equivalents

86,704142,416

Trade and other receivables

678,098

751,824

Contract assets

142,075

101,282

Inventories

872,602785,632

Income taxes receivable

20,946

14,748Other financial assets

6,307

13,359Other current assets

108,410

79,430Total current assets

1,915,146

1,888,694

1,717,751

1,772,303

Goodwill

6,497

6,200

Intangible assets

88,802

95,055Right-of-use asset

102,322

111,938

Investment property
Investments accounted forusing equity method
Retirement benefit asset

58,15858,310336,040

355,242

15,52022,159Deferred tax assets

94,93086,014

Other financial assets

296,004

244,505

Other non-current assets

14,946

14,547

Total non-current assets

2,730,974

2,766,278

4,646,120

4,654,972

Non-current assets
Property, plant and equipment

Total assets

4

As ofMarch 31, 2020

(million yen)
As ofMarch 31, 2021

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables
Bonds payable, borrowings,
and lease obligations
Contract liabilities

557,252

496,995

376,473

277,027

44,81343,038

Income taxes payable, etc.

13,24915,090

Provisions

12,507

11,518Other financial liabilities

89,46586,836

Other current liabilities

210,543

208,510

Total current liabilities

1,304,306

1,139,017

1,437,835

1,529,112

143,316

141,186

Provisions

25,74024,105

Deferred tax liabilities

3,723

7,591

Non-current liabilities
Bonds payable, borrowings,
and lease obligations
Retirement benefit liability

Other financial liabilities

16,24645,417

Other non-current liabilities

8,398

8,387

Total non-current liabilities

1,635,261

1,755,800

2,939,568

2,894,818

Share capital

147,143

147,143

Capital surplus

652,430

652,465

Retained earnings

1,002,076

1,029,976

Treasury shares(180,637)

ሺ180,639)

Total liabilities
EquityOther components of equity
Equity attributable to owners ofparentNon-controlling interests

6,012

30,278

1,627,026

1,679,223

79,52680,930Total equity

1,706,552

1,760,154

4,646,120

4,654,972

Total liabilities and equity5(2) Consolidated statement of profit or loss and consolidated statement of comprehensive income
Consolidated statement of profit or loss
(million yen)
Fiscal 2020
(April 1, 2020 –March 31, 2021)

Fiscal 2019
(April 1, 2019 –March 31, 2020)
Revenue

3,729,717

3,227,285

Cost of sales(3,334,103)

ሺ2,912,766)

Gross profit

395,614314,519

Selling, general and administrative expenses
Share of profit of entities accounted for using
equity method
Other income(356,992)

ሺ324,057)

8,782

14,23930,81825,782Other expenses(40,323)(43,394)

Business profit (loss)

37,899

ሺ12,911)-28,021

Impairment losses(238,826)(7,544)

Operating profit (loss)(200,927)

7,566

Finance income

2,727

1,686

Finance costs(15,273)

ሺ14,184)

Loss before tax(213,473)(4,930)

Profit on sales of fixed assets

20,183

ሺ14,133)(193,290)

ሺ19,063)(197,744)

ሺ21,868)

4,454

2,804

(193,290)

ሺ19,063)

Basic losses per share (yen)(343.39)

ሺ37.98)

Diluted losses per share (yen)(343.39)

ሺ37.98)

Income tax expense
Loss
Loss attributable to
Owners of parent
Non-controlling interests
Loss
Basic losses per share6Consolidated statement of comprehensive income(million yen)
Fiscal 2020
(April 1, 2020 –March 31, 2021)

Fiscal 2019
(April 1, 2019 –March 31, 2020)(193,290)

ሺ19,063)(4,975)

12,020(49,143)

46,751

3,148

13,284(50,971)

72,056(3,080)

ሺ609)

(44)

11,673(11,786)

ሺ825)(14,911)

10,238(65,882)

82,295(259,172)

63,231(263,243)

60,036

Non-controlling interests

4,070

3,195

Comprehensive income(259,172)

63,231Loss
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans
Net change in fair value of equity instruments
designated as measured at fair value throughother comprehensive income
Share of other comprehensive income ofinvestments accounted for using equity method
Total of items that will not be reclassified to profit
or loss
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign
operations
Effective portion of cash flow hedges
Share of other comprehensive income ofinvestments accounted for using equity method
Total of items that may be reclassified to profit orloss
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Owners of parent

7

(3) Consolidated statement of changes in equity
Fiscal 2019 (April 1, 2019 – March 31, 2020)(million yen)
Equity attributable to owners of parent
Other components of equity

CapitalsurplusRetainedearnings

Treasuryshares147,143646,793

1,241,420(180,670)－

90,730－－(1,302)－－－

Share capital

Balance as of April 1, 2019
Cumulative effects of changes in accounting
policies
Retroactively adjusted balance

Net change infair value ofequityinstruments
Remeasurements
designated asof defined benefit
measured at
plans
fair value
through othercomprehensive
income147,143646,793

1,240,117(180,670)－

90,730Loss－－(197,744)－－－

Other comprehensive income

－

－

－

－

(4,765)(46,129)

Comprehensive income－－(197,744)－(4,765)(46,129)

Purchase of treasury shares

－

－

－

(73)

－

－

Disposal of treasury shares

－

(12)

－

17

－

－

Dividends－－(40,363)－－－

Share-based payment transactions

－

(34)

－

88

－

－

－

5,684

－

－

－

－

－

－

67

－

4,765

(4,832)

Transfer to non-financial assets

－

－

－

－

－

－

Other

－

－

－

－

－

－

Changes in ownership interest in
subsidiaries
Transfer from other components ofequity to retained earnings

Total transactions with owners
Balance as of March 31, 2020

－

5,637

ሺ40,296)

33

4,765

(4,832)

147,143

652,430

1,002,076(180,637)－

39,768Equity attributable to owners of parent
Other components of equity
Exchangedifferences on
Effective
translation of portion of cash
foreignflow hedges
operations
Balance as of April 1, 2019
Cumulative effects of changes in accounting
policies
Retroactively adjusted balance
Loss

Noncontrollinginterests

Total

Total

Total equity(16,547)(2,532)

71,6501,926,337

65,422

1,991,759－－－(1,302)－(1,302)(16,547)(2,532)

71,6501,925,034

65,422

1,990,456－－－(197,744)

4,454(193,290)

Other comprehensive income(15,393)790(65,498)(65,498)

ሺ384)(65,882)

Comprehensive income(15,393)790(65,498)(263,243)

4,070

ሺ259,172)

－

－

－

(73)

－

(73)

Purchase of treasury shares
Disposal of treasury shares

－

－

－

5

－

5

Dividends－－－(40,363)(2,559)(42,922)

Share-based payment transactions

－

－

－

54

－

54

－

－

－

5,684

12,287

17,971

－

－

(67)

－

－

－

Transfer to non-financial assets

－

(71)

(71)

(71)

－

(71)

Other

－

－

－

－

306

306

－

(71)

(138)

(34,764)

10,034(24,730)(31,941)(1,813)

6,012

1,627,026

79,526

1,706,552

Changes in ownership interest in
subsidiaries
Transfer from other components of equity
to retained earnings

Total transactions with owners
Balance as of March 31, 20208

Fiscal 2020 (April 1, 2020 – March 31, 2021)(million yen)
Equity attributable to owners of parent
Other components of equity

CapitalsurplusRetainedearnings

Treasuryshares147,143

652,430

1,002,076

ሺ180,637)

Share capital

Balance as of April 1, 2020

Net change infair value ofequityinstruments
Remeasurements
designated asof defined benefit
measured at
plans
fair value
through othercomprehensive
income－39,768Loss－－

ሺ21,868)－－－

Other comprehensive income

－

－

－

－

12,18659,433Comprehensive income－－

ሺ21,868)－

12,18659,433Purchase of treasury shares

－

－

－

ሺ65)

－

－

Disposal of treasury shares

－

ሺ22)

－

26

－

－

Dividends

－

－

－

－

－

－

Share-based payment transactions

－

ሺ23)

－

37

－

－

Changes in scope of consolidation

－

－

－

－

－

－

－

80

－

－

－

－

Changes in ownership interest in
subsidiaries
Transfer from other components ofequity to retained earnings－－

49,768－

ሺ12,186)

ሺ37,581)Transfer to non-financial assets

－

－

－

－

－

－

Other

－

－

－

－

－

－

Total transactions with owners
Balance as of March 31, 2021－

34

49,768

ሺ1)

ሺ12,186)

ሺ37,581)

147,143

652,465

1,029,976

ሺ180,639)－

61,620Equity attributable to owners of parent
Other components of equity
Exchangedifferences on
Effective
translation of portion of cash
foreignflow hedges
operations
Balance as of April 1, 2020

ሺ31,941)

ሺ1,813)

Noncontrollinginterests

Total

Total

Total equity

6,012

1,627,026

79,526

1,706,552－－－

ሺ21,868)

2,804(19,063)

Other comprehensive income

ሺ314)

10,59981,90481,904

390

82,295Comprehensive income

ሺ314)

10,59981,90460,036

3,195

63,231

－

－

－

ሺ65)

－

ሺ65)

Loss

Purchase of treasury shares
Disposal of treasury shares

－

－

－

4

－

4

Dividends

－

－

－

－

ሺ1,743)

ሺ1,743)

Share-based payment transactions

－

－

－

13

－

13

Changes in scope of consolidation

－

－

－

－

694

694

－

－

－

80

(854)

ሺ774)

－

－

ሺ49,768)－－－

Transfer to non-financial assets－

ሺ7,871)(7,871)

ሺ7,871)－

ሺ7,871)

Other

－

－

－

－

112

112

－

ሺ7,871)

ሺ57,639)

ሺ7,838)

ሺ1,791)

ሺ9,629)ሺ32,256)914

30,278

1,679,223

80,9301,760,154

Changes in ownership interest in
subsidiaries
Transfer from other components of equity
to retained earnings

Total transactions with owners
Balance as of March 31, 20219

(4) Consolidated Statement of Cash Flow(million yen)
Fiscal 2020
(April 1, 2020 –March 31, 2021)

Fiscal 2019
(April 1, 2019 –March 31, 2020)
Cash flows from operating activities
Loss before tax(213,473)

ሺ4,930)Depreciation and amortization

231,577

236,353

Increase (decrease) in allowance(6,601)

ሺ2,696)

Interest and dividend income(12,205)

ሺ7,179)Interest expenses

14,486

13,844

Decrease (increase) in trade and otherreceivables

86,357

ሺ71,111)

Decrease (increase) in inventories

42,55986,569

Increase (decrease) in trade and other payables(52,338)

ሺ42,479)

Other

184,494

47,381

Subtotal

274,856

255,751

Interest and dividends received

24,192

14,857

Interest paid

(13,241)

ሺ12,362)

Income taxes refund (paid)(24,736)

ሺ10,972)

Cash flows from operating activities

261,070

247,274(352,842)

ሺ308,123)

3,357

29,547(35,299)(5,731)

Proceeds from sale of investments

23,530128,898

Other

2,875

ሺ8,812)(358,378)

ሺ164,221)

Cash flows from investing activities
Purchase of property, plant and equipment,
intangible assets, and investment property
Proceeds from sale of property, plant andequipment, intangible assets, and investment
property
Purchase of investments

Cash flows from investing activities

10(million yen)
Fiscal 2020
(April 1, 2020 –March 31, 2021)

Fiscal 2019
(April 1, 2019 –March 31, 2020)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings(11,500)

3,396

5,999

ሺ88,999)

Proceeds from long-term borrowings

183,529

224,077

Repayments of long-term borrowings(104,825)

ሺ214,826)

Proceeds from issuance of bonds

120,000

60,000

Increase (decrease) in commercial papers

Payments for purchase of treasury shares

(73)

(65)

Dividends paid to owners of parent(40,363)－

Other(48,865)

ሺ13,674)

Cash flows from financing activities

103,900

ሺ30,092)(2,176)

2,752

4,416

55,712

Cash and cash equivalents at beginning of period

82,28886,704

Cash and cash equivalents at end of period

86,704142,416

Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents11(5) Notes to Consolidated Financial Statements
Notes Pertaining to the Presumption of a Going Concern
There is no item for this period.
Segment information(1) Overview of reportable segments
The Group organized under JFE Holdings executed commercial activities through three operating companies—JFE
Steel Corporation, JFE Engineering Corporation and JFE Shoji Corporation—in accordance with the characteristics oftheir respective businesses. Consolidated reporting segments, one for each operating company, were characterized bytheir 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 suchas facility maintenance and construction. The engineering business handled engineering for energy, urban environment,
steel structures and industrial machines, recycling and electricity retailing. The trading business purchased, processedand distributed steel products, raw materials for steel production, nonferrous metal products, and food, etc.
(2) Information on reportable segments
The Group assesses segment performance on the basis of segment profit. Segment profit is profit before tax excluding
one-time items of a materially significant value.
Intersegment transactions are based on market prices and the like.
Fiscal 2019 (April 1, 2019 to March 31, 2020)

Steel

Engineering

Trading

Total

Adjustments1(million yen)Amountrecorded inconsolidated
financialstatements

Revenue
Revenue from externalcustomers
Intersegment revenue

2,311,251

498,629

919,8363,729,717－

3,729,717

370,098

13,666

164,301

548,065

ሺ548,065)

－

Total

2,681,350

512,295

1,084,137

4,277,783

ሺ548,065)

3,729,717

ሺ8,783)

23,11827,016

41,351

ሺ15,998)

25,353

Segment profit
Impairment lossesሺ238,826)

Loss before tax

ሺ213,473)

Segment assets
Other items
Depreciation andamortization
Impairment losses
Finance income

3,836,847

465,734

756,141

5,058,723

ሺ412,602)

4,646,120

209,031

13,302

10,244

232,578

ሺ1,000)231,577

ሺ233,144)

ሺ356)

ሺ5,325)

ሺ238,826)－

ሺ238,826)

1,437

140

1,354

2,932

(205)

2,727

Finance costs636
ሺ11,721)
ሺ697)
ሺ3,492)
ሺ15,910)
ሺ15,273)
Share of profit (loss) ofentities accounted for using
25,518477
558
26,5548,782
ሺ17,772)
equity method
Investments accounted for
289,406
11,562
14,909315,878
20,162
336,040
using equity method
Capital expenditures
362,741
11,892
17,986392,621(1,265)391,356
1 Adjustments are as follow:(1) Adjustments to segment profit include corporate profit not allocated to a reportable segment: 48,548 million
yen, elimination of dividend income from each reportable segment: (48,365) million yen, and share of loss ofentities accounted for using equity method related to Japan Marine United Corporation: (17,995) million yen;elimination of other intersegment transactions: 1,813 million yen. Corporate profit is profit of the Company.
(2) Adjustments to segment assets include corporate assets not allocated to a reportable segment: 49,450 million
yen and elimination of intersegment receivables and payables, etc.: (462,053) million yen. Corporate assets
are assets of the Company.

12

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

Steel

Engineering

Trading

Total

Adjustments1(million yen)Amountrecorded inconsolidated
financialstatements

Revenue
Revenue from externalcustomers
Intersegment revenue

1,938,933

474,908

813,443

3,227,285－

3,227,285

316,283

10,842

119,066

446,192

ሺ446,192)

－

Total

2,255,216

485,750

932,510

3,673,477

ሺ446,192)

3,227,285

Segment profit

ሺ65,461)

24,07320,098

ሺ21,289)(4,118)(25,408)

Gain on sales of fixed assets

28,021

Impairment losses

ሺ7,544)

Loss before tax

ሺ4,930)

Segment assets
Other items
Depreciation andamortization
Impairment losses
Finance income

3,864,262

478,146717,2705,059,679

ሺ404,707)

4,654,972

211,645

14,62911,065

237,340(987)

236,353

ሺ6,351)

ሺ59)

ሺ1,133)

ሺ7,544)－

ሺ7,544)

689

171

1,000

1,861

(174)

1,686

Finance costs588
ሺ11,880)
ሺ838)
ሺ2,053)
ሺ14,772)
ሺ14,184)
Share of profit (loss) ofentities accounted for using
16,873277
671
17,822
14,239
ሺ3,582)equity method
Investments accounted for
312,476
11,903
17,144
341,525
13,717355,242using equity method
Capital expenditures
308,384
22,358
12,798343,540(1,145)342,395
1 Adjustments are as follows.
(1) Adjustments to segment profit include corporate profit not allocated to a reportable segment: 9,334 million yen,elimination of dividend income from each reportable segment: (8,847) million yen, and share of profit ofentities accounted for using equity method related to Japan Marine United Corporation: (4,136) million yen;elimination of other intersegment transactions: (469) million yen. Corporate profit is profit of the Company.
(2) Adjustments to segment assets: Corporate assets not allocated to a reportable segment: 103,726 million yen
and elimination of intersegment receivables and payables, etc.: (508,433) million yen. Corporate assets areassets of the Company.

13Per-share information(1) Basic earnings per share and diluted earnings per share
Fiscal 2019
(April 1, 2019
– March 31, 2020)

Fiscal 2020
(April 1, 2020
– March 31, 2021)

Basic losses per share (yen)(343.39)(37.98)

Diluted losses per share (yen)(343.39)(37.98)(2) Basis for calculation of basic earnings per share and diluted earnings per share
Fiscal 2019
(April 1, 2019
– March 31, 2020)
Loss attributable to owners of the parent company(million yen)Amount not attributable to common shareholders of theparent company (million yen)
Loss used in calculation of basic earnings per share(million yen)
Profit adjustments (million yen)
Loss used in calculation of diluted earnings per share(million yen)
Weighted average number of common shares used in
calculation of basic earnings per share (thousand shares)
Impact of dilutive potential common shares(thousand shares)
Share-based payments
Weighted average number of common shares used in
calculation of diluted earnings per share (thousand
shares)Fiscal 2020
(April 1, 2020
– March 31, 2021)(197,744)

ሺ21,868)－－(197,744)

ሺ21,868)－－(197,744)

ሺ21,868)

575,854575,829－－575,854575,829

Note: Company shares held in trust accounts for employee stock ownership plans are included in treasury shares, which
are excluded from the calculation of the weighted average number of shares used in the calculation of basic
earnings per share. The weighted average number of treasury shares excluded from the calculation of basic
earnings per share for the previous and current consolidated fiscal years are about 589,000 and about 567,000,
respectively.
A total of about 107,000 shares of stock compensation have a reverse dilution effect and are not included in thecalculation of diluted earnings per share for the current fiscal year
Material subsequent events
There is no item for this period.

14

4. Supplementary information(1) Consolidated financial performance(billion yen)
FY2021

FY 2019

FY 2020

Changeforecast

1H
2H
Full year
1H
2H
Full year
1H
2H
Full year
1,353.1 1,328.2 2,681.3 1,027.2 1,227.9 2,255.2 (325.9) (100.3)(426.1)

Steel BusinessEngineering Business

238.9

273.3

512.2

221.9

263.7

485.7

(17.0)(9.6)(26.5)

Trading Business

557.5

526.6

1,084.1

451.7

480.7

932.5 (105.8)(45.9)(151.6)

Adjustments
Revenue

69.7

Full year(278.3) (269.7)(548.0) (208.6) (237.5)(446.1)

32.2

101.9

1,871.2 1,858.5

3,729.7 1,492.2 1,734.9

3,227.2 (379.0) (123.6)(502.5)3,930.0

112.6(50.7)

200.0

1

A

49.0

(11.2)

37.8(114.3)101.4(12.9) (163.3)

Finance income / costs

B

(6.3)

(6.2)

(12.5)

(6.4)

(6.0)

(12.4)

(0.1)

0.2

0.1

(10.0)

Steel Business

17.7(26.4)(8.7) (136.2)

70.8(65.4) (153.9)

97.2(56.7)

140.0

Engineering Business

11.9

11.2

23.1

15.3

24.0

(3.2)

4.1

0.9

25.0

Business profit

Segment Profit

8.7

Trading Business

14.6

12.4

27.0

7.2

12.8

20.0

(7.4)

0.4

(7.0)

27.0

Adjustments(1.5)(14.4)(15.9)

(0.4)

(3.6)

(4.1)

1.1

10.8

11.8

(2.0)

42.7

(17.4)

25.3 (120.7)

95.3(25.4) (163.4)

112.7(50.7)

190.0

Total
Exceptional Items

A+B2- (238.8)

Profit before tax(238.8)42.7 (256.1)

-

20.4

20.4

0.0

259.2

259.2

-

(213.4) (120.7)

115.8(4.9) (163.4)

371.9

208.5

190.0

15.0

(32.0)(16.9)

25.8(58.5)(32.6)(60.0)(197.7) (105.7)

83.8(21.8) (137.6)

313.4

175.9

130.0

Tax Expense and Profit (Loss)
Attributable to Non-controlling
Interests(10.8)

Profit Attributable to Owners of Parent
1

26.5

15.7

31.9 (229.6)

Business profit: Profit that excludes financial income and exceptional items from profit before tax. It is a benchmark indicator of thecompany’s consolidated earnings.

2

Exceptional Items: One-time items of a materially significant value.

(2) Consolidated Financial IndicesFiscal 2019

Fiscal 2020

Change1.0%(0.4%)(1.4%)

0.8%(0.3%)(1.1%)

Return on Sales (ROS)1
Return on Assets (ROA)

2

3

Return on Equity (ROE)(11.1%)(1.3%)

9.8%

EBITDA4

269.4 billion yen

223.4 billion yen(46.0 billion yen)Interest-bearing debt outstanding

1,814.3 billion yen

1,806.1 billion yen(8.2 billion yen)

Debt / EBITDA multiple5
Equity attributable to owners of parent

6.7x

8.1x

1.4x

1,627.0 billion yen

1,679.2 billion yen

52.2 billion yen

96.4%

93.2%

(3.2%)

D/E Ratio6
1

ROS = Business profit / Revenue

2

ROA = Business profit / Total assets

3

ROE = Profit attributable to owners of parent / Equity attributable to owners of parent

4

EBITDA = Business profit + Depreciation and amortization

5

Debt / EBITDA multiple = Interest-bearing debt outstanding / EBITDA

6

D/E ratio = Debt outstanding / Equity attributable to owners of parent. For debt having a capital component*, a portion of its issue price isdeemed to be capital, as assessed by rating agencies.

* For debt having a capital component, a portion of its issue price is deemed to be capital, as assessed by rating agencies.
Borrowing Execution Date
June 30, 2016
March 19, 2018

Amount Borrowed
Assessment of Equity Content
200.0 billion yen
25%
300.0 billion yen
25%

15

Amount Deemed to be Capital
50.0 billion yen
75.0 billion yen

(3) Crude Steel Production (JFE Steel)

FY 2019

Non-consolidated
Consolidated

FY 2020

Non-consolidated
Consolidated(million tons)

1Q

2Q

1H

3Q

4Q

2H

Full year

7.00
7.36
4.79
5.09

6.79
7.13
5.38
5.68

13.79
14.50
10.17
10.77

6.24
6.59
6.27
6.59

6.70
7.00
6.32
6.60

12.94
13.59
12.59
13.19

26.73
28.09
22.76
23.96

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

1Q

2Q

1H

3Q

4Q

2H

Full year

FY 2019

5.85

5.94

11.80

5.59

6.09

11.68

23.47

FY 2020

4.59

4.75

9.34

5.42

5.72

11.15

20.49

(5) Export Ratio on Value Basis (JFE Steel on non-consolidated basis)

(%)

1Q

2Q

1H

3Q

4Q

2H

Full year

FY 2019

39.9

42.1

41.0

39.7

44.4

42.1

41.5

FY 2020

44.2

40.2

42.2

40.3

44.3

42.4

42.3

1Q

2Q

1H

3Q

4Q

2H

Full year

FY 2019

110.7

107.6

109.2

108.8

109.4

109.1

109.1

FY 2020

107.7

105.9

106.8

104.8

104.7

104.8

105.8

(6) Foreign Exchange Rate (Yen/US dollar)(JPY/USD)(7) Average Selling Price (JFE Steel on non-consolidated basis)(thousand yen/ton)

1Q

2Q

1H

3Q

4Q

2H

Full year

FY 2019

80.4

79.4

79.9

79.6

76.1

77.8

78.8

FY 2020

75.3

71.0

73.1

73.4

78.8

76.2

74.8

(8) Engineering Business Orders (including intersegment transactions)a. Actual order received(billion yen)

Field

FY2019FY2020ChangeEnvironment
EnergyInfrastructure, others

187.1
109.8
116.1

250.4
122.7
127.9

63.3
12.9
11.8

Total

413.0

501.1

88.1

FY2019yearend

FY2020
yearend

Change

525.9

549.0

23.1

(billion yen)b. Order backlog(9) Capital Investment and Depreciation and Amortization (JFE Holdings)(billion yen)

FY 2019

FY2020Capital Investment

391.3

342.3

Depreciation & Amortization

231.5

236.3

(on construction basis)

16

(10) Breakdown of Changes in Segment Profit
a. FY 2020, compared to FY 2019(billion yen)
ChangeSteel Business
-

Cost

100.0

-

Sales volume and mix(104.0)-

Sales prices and raw materials

2.0-

Unrealized gains (losses) on inventories

(4.0)

-

Others(50.7)-

Total(56.7)Engineering Business

0.9

Trading Business(7.0)

Adjustment

11.8

Reduced fixed costs, mainly for repairs
and labor, and effects of capital
investment
Decreased volume due to lower
demand and worsening of product mix

Deteriorated earnings of domestic andoverseas group companies, etc.

Improved profit due to cost reductions
Weaker earnings due to lower demandin first half
No one-time items (construction delays,etc.) in previous fiscal year for shipbuilding equity-method affiliates, etc.

b. FY 2020, compared to previous forecast(billion yen)
ChangeSteel Business
-

Cost

0.0

-

Sales volume and mix

1.0-

Sales prices and raw materials

2.0-

Unrealized gains (losses) on inventories

7.0-

Others

4.6

-

Total

14.6

Engineering Business, Trading Business,
Adjustment

5.0

Increased production volume
Higher market prices, especially forexports
Foreign currency translation
adjustments due to yen’s depreciation
at end of period, etc.
Improved earnings of domestic andoverseas group companies, etc.

c. FY 2021 (forecast), compared to FY 2020
(billion yen)
ChangeSteel Business
-

Cost

30.0

-

Sales volume and mix

70.0

-

Sales prices and raw materials

15.0

-

Unrealized gains (losses) on inventories

90.0

-

Others

0.4

-

Total

205.4

-

Engineering Business, Trading Business,
Adjustment

10.0

###
17

Effect of new capital investment, etc.
Increased volume due to recovered
demand for steel materials
Higher market prices, especially forexports
Improved earnings of domestic andoverseas companies, increased
depreciation expenses, etc..