JFE Holdings, Inc.
1Q Financial Results Briefing for the Fiscal Year Ending March 2024
August 3, 2023

Presentation
Moderator: We will now begin the financial results briefing of JFE Holdings, Inc.
In attendance today are Masashi Terahata, Representative Director, Executive Vice President and CFO, andToshihiro Tanaka, Senior Vice President.
It will take approximately 30 minutes for the presentation and 30 minutes for questions, which makes 60
minutes in total. The question-and-answer session will be held collectively after the presentation.
Mr. Terahata, Representative Director, Executive Vice President and CFO, will begin with an overview of thefinancial results and outlook announced today.
Terahata: This is Terahata. I will explain.

The financial results for 1Q of FY2023 were closed with JPY84.8 billion in business profit. In the previous year,
it was JPY116.6 billion, so it is a decrease of JPY31.8 billion. In 1Q of the previous year, coal prices soared, so
operating profit excluding inventory valuation differences was JPY0.6 billion in the previous year and JPY75.8
billion this year, which is an improvement of JPY75.2 billion. During this period, efforts to improve selling
prices have resulted in a significant improvement in profit excluding inventory valuation differences.

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For the full fiscal year, we are forecasting business profit of JPY290 billion, as previously forecasted. Since raw
materials have been declining slightly, without the inventory valuation differences, it is improved by JPY35
billion from JPY280 billion to JPY315 billion. The profit per ton is JPY10,000.
Currently, the recovery of overseas steel market conditions and demand is slower than initially expected. In
response to this, we have revised our previous forecast for non-consolidated crude steel production for
FY2023 from 25 million tons to around 24.6 million tons.
In this business environment, we have improved our profit excluding inventory valuation differences andprofit per ton from the previous year by promoting sales price improvement.
Based on these financial results, the Company announced that it will maintain its annual dividend of JPY100,
which is about 30% of the payout ratio, as previously announced and will pay an interim dividend of JPY50.
Today, we will also explain our current efforts. One is the planned suspension of the upstream and hot rolling
facilities in the Keihin District around September 16 of this year. In addition, we announced today as a news
release on the establishment of a joint venture with JSW for grain-oriented electrical steel sheets in India. We
also released in June that green steel products have been selected for large cargo ships.
That's all from me.

Tanaka: I will now explain the 1Q financial results.

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As you can see in the middle of this table, the 1Q results show revenue of JPY1.262 trillion, business profit of
JPY84.8 billion, and net income of JPY59.6 billion.
Compared to 1Q of FY2022 on the left, business profit is down JPY31.8 billion. However, as mentioned at the
beginning, last year, a large amount of inventory valuation differences, etc., was included due to soaring
coking coal prices, so excluding valuation differences, the improvement was JPY75.2 billion.

This table shows revenue and profit by segment. Down the middle are the profit by segment. The segment
profit of the steel business was JPY68.1 billion, which, in line with the overall trend, is JPY24.9 billion less thanthat of last year.
Next, as for the engineering business, it was negative JPY0.1 billion the increase in sales and the promotion of
cost reductions resulted in a JPY1.1 billion improvement.
The trading business recorded JPY14.7 billion, a JPY6.4 billion decrease from last year. This is due to anarrowing of the spread, mainly in North America. Last year's figure of JPY21.1 billion was extremely high, andwe assess that JPY14.7 billion for this fiscal year is not a bad figure by any means.

3The following is a breakdown of the increase or decrease in the steel business compared to last year.
First, crude steel production was reduced from 6.43 million tons last year to 6.05 million tons this fiscal year,
a decrease of 380,000 tons. This was a factor in the decline in the “volume and mix”, resulting in a decreasein profit of approximately JPY10 billion.
On the other hand, regarding sales prices and raw materials, that is spreads, efforts were made to improvedomestic prices amid a significant decline in export prices compared to last year. On the other hand, coking
coal dropped sharply, resulting in a significant JPY120 billion improvements in spreads.
Conversely, the inventory valuation differences, etc., which was a major positive factor last year due to therise in raw materials, was almost zero this quarter, resulting in a negative JPY107 billion compared to last year.
Thus, item 3 and 4 largely increased and decreased, respectively. As a result, as shown in the upper right-hand,profit excluding inventory valuation differences, etc. was improved significantly by JPY82.1 billion from a lossof JPY23 billion last year to JPY59.1 billion this fiscal year.

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Next, I would like to explain the outlook for the current fiscal year.
First of all, if you look at the updated forecast, revenue is JPY5.38 trillion, which is a JPY160 billion decrease
from the forecast announced in May.
This is basically due to stagnant steel market conditions, especially overseas, and lower volumes.
On the other hand, annual business profit, segment profit, and net income remain unchanged from theannouncement made in May, respectively.
Today, the Company has announced the following forecasts for 1H: business profit of JPY125 billion, segment
profit of JPY115 billion, and net income of JPY85 billion.

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As before, here is a breakdown by segment, with segment profit completely unchanged from theannouncement in May: JPY200 billion for steel, JPY25 billion for engineering, and JPY48 billion for trading.
The newly announced segment profits for 1H are JPY87 billion for steel, JPY5 billion for engineering, and JPY26
billion for trading.

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Next, we have decided to pay an interim dividend of JPY50 per share. The annual dividend remains unchanged
at JPY100 per share as previously announced.

7

Next, I will explain the status by segment. First is steel.
First, regarding domestic demand for steel products, the level of activity in the automotive sector is improving.
On the other hand, demand continues to be postponed due to labor shortages or soaring material prices,
particularly in the civil engineering and construction field.
Overall, the steel demand is expected to remain almost flat from 1H to 2H.
I would like to explain the trends by sector in more detail on the right. With regard to automobiles, as I
mentioned earlier, production levels are recovering moderately, and demand is expected to increase.
Stable demand is also expected to continue for shipbuilding. In other manufacturing industries, we believethat the construction machinery market remains firm, but the industrial machinery market has weakened
slightly due to a cautious stance toward capital investment, reflecting economic uncertainty and other factors.
Below that, construction is steady for large nonresidential redevelopment projects, but we see some projects
being postponed. We see that small and medium-sized projects continue to be sluggish, precisely because of
the effects of soaring material prices and labor shortages.
Furthermore, for civil engineering, although budget measures have been taken, there has also been a
considerable impact of postponement here due to cost increases, labor shortages, etc. Overall, we expect
demand in 1H and 2H to remain mostly flat.

8

Next is overseas.
A moderate recovery is expected to continue overall, but this recovery will be greatly affected by that in China.
In China, while crude steel production is increasing, domestic demand is weak due to sluggish real estate andother factors, and the market recovery has been considerably delayed compared to our initial expectations.
We expect a recovery due to the government's economic stimulus measures or the crude steel restraints
mentioned in some reports, but the timing of such recovery will be quite difficult before the end of the year,
and we expect it to start around the beginning of the new year.

9Next are raw materials.
The iron ore price has been hovering around FOB＄100. Coking coal saw a very large movement last year, but
has recently settled at around FOB＄230.
Of course, we believe there is a possibility of an upward swing in the future due to the recovery of demand in
China and other factors. However, in our current outlook, we expect the current situation to continue for 2H.

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This is about the crude steel production.
Although domestic demand for automobiles is recovering, the overall recovery is slower than what we
forecasted in May. The forecast for crude steel production has been revised downward by about 400,000 tons
from the previous forecast to 24.6 million tons per year.
It is 12.3 million tons in 1H and the same in 2H. We forecast that the crude steel production will remain mostly
unchanged from 1H to 2H.
Suspension of upstream facilities in the Keihin District is scheduled for September 16. In 2H, we will produce
about the same amount as 1H with seven blast furnaces.
As for annual crude steel on the left side, last year it was 24.1 million tons, so if it reaches 24.6 million tons
this year, it can be said to be a moderate recovery. However, last year, due to the impact of the renovation of
Number 6 blast furnace in Chiba, we had some inventory buildup in the year before that, which may havemade the figure smaller than the actual demand. Given this, we forecast that the step between 2022 and2023 is even lower and close to flat.

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Next is the sales price.
As for the selling price, in this 1H, the price of main raw materials is declining, and the overseas steel market
is also on a very downward trend. However, we continued our efforts to correct the price level by reflecting
various prices, etc. The average sales price is about JPY128,000 in 1H, almost maintaining the level of 2H lastyear.
We are planning a significant improvement of JPY144 billion, or JPY7,000 per ton, in the current fiscal year's
forecast for spreads compared to last year, due in part to the fact that raw materials costs are down compared
to last year. Comparing with the previous forecast, this is also an improvement of JPY64 billion, or JPY3,000
per ton.
The spread I just mentioned includes all alloys, energy, and currency effects.

12JFE Steel

Financial Forecast for Fiscal Year 2023
FY2022

FY2023(updated)

Unit
1Q

2Q

1H

2H

Full
Year

1Q

2Q

1H

2H

Full
Year

FY2023
Previous
Forecast

Revenuebillion
yen

932.6

986.3

1,918.9

1,962.2

3,881.1

917.2

970.8

1,888.0

1,882.0

3,770.0

4,000.0

Segment
Profitbillion
yen

93.0

55.2

148.2

(1.4)

146.8

68.1

18.9

87.0

113.0

200.0

200.0

ExcludingInventory
Valuationetc.*billionyen(23.0)

55.2

32.2

41.6

73.8

59.1

43.9

103.0

122.0

225.0

190.0

Crude Steel(Standalone)

Mt

6.43

6.21

12.64

11.45

24.10

6.05

Approx. Approx.
6.30
12.30

Approx.
12.30

Approx.
24.60

Approx.
25.00

Crude Steel(Consolidated)

Mt

6.77

6.59

13.37

12.11

25.48

6.38

Approx. Approx.
6.70
13.10

Shipment(Standalone)

Mt

5.54

5.32

10.86

10.88

21.74

5.23

Approx.
Approx.
5.70
10.90

Export Ratio
on Value Basis（Standalone）

%

48.5

45.0

46.7

42.2

44.5

44.2

Approx.
44

Average Sales
Price(Standalone)

000
yen/
ｔ

126.7

136.7

131.6

129.9

130.8

128.5

Approx. Approx.
127
128

Exchange Rate

¥/$

126.5

136.6

131.6

138.6

135.1

135.8

Approx.
142

Approx.
139

Approx.
140

Approx.
139

Approx.
130

Exchange Rate
(End of Term)

¥/$

136.7

144.8

144.8

133.5

133.5

145.0

Approx.
140

Approx.
140

Approx.
140

Approx.
140

Approx.
130＊Excluding inventory valuation, carry over and foreign exchange valuation from segment profit

Approx.
44

Copyright © 2023JFE Holdings, Inc. All Rights Reserved.

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This is a summary of the FY2023 forecast.
The segment profit is JPY200 billion, which is unchanged from the previous forecast. Below that, the profit
excluding inventory valuation differences, etc., is JPY225 billion, while the previous forecast to the right was
JPY190 billion. So, the profit excluding inventory valuation differences, etc., will improve by JPY35 billion.
Crude steel production is 24.6 million tons, with 12.3 million tons both in 1H and 2H.
The third line from the bottom shows the average price of steel products, with the 1H average being about
JPY128,000. The exchange rate assumption for 2H is placed at JPY140.

13

Based on the above, here is a comparison of the segment profit with the previous forecast.
Although it is break-even in total, there is a negative impact of JPY8 billion on volume due to reduced crude
steel production. Regarding spreads, prices, especially for exports, are lower than the previous forecast.
However, considering lower raw materials prices and the improvement and maintenance of domestic prices,
it is positive JPY70 billion.
On the other hand, due to the lower prices of raw materials than the initial forecast, inventory valuationdifferences and in particular carry-over caused negative impact on the profit. Including these, the total is zero.
However, the spread was improved instead of the negative JPY35 billion in inventory valuation differences,
etc., resulting in a JPY35 billion improvement excluding inventory valuation differences, etc.

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JFE Steel

53.2Bn. Increase in JFE Steelʼs Segment Profit(FY2022 (Actual) vs. FY2023 (Forecast))（billion yen）

JFE Steel

FY2022
ActualSegment Profit

146.8

200.0

53.2

73.8

225.0

151.2

Excluding Inventory
Valuation etc.

1. CostChangeFY2023
Forecast+63.0• Structural reforms effect +20.0• Operational improvement +20.0• Disappearance of blast furnace refurbishment impact
and production reduction impact +23.0+10.0• Increased volume due to gradual recovered steel demand（Crude Steel Production 24.10Mt ⇒approx. 24.60Mt ）3. Sales and
Raw materials+145.0• Improved spreads due to the reflection of high prices ofmain raw materials, metals, and other commodities inselling prices

4. Inventory
valuation(98.0)• Inventory valuation -91.0 (+79.0→-12.0)• Carry over +4.0 (-23.0→-19.0)• Foreign exchange valuation -11.0 (+17.0→-6.0)(66.8)• Depreciation cost -12.0• Foreign exchange effects on trade -10.0 etc.

2. Volumeand Mix

5. Others

Copyright © 2023JFE Holdings, Inc. All Rights Reserved.

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Next is comparison with the previous year.
Segment profit is JPY200 billion compared to last year's result of JPY146.8 billion, which is an improvement of
JPY53.2 billion as initially forecasted in May. First of all, we expect costs to increase by JPY63 billion as initiallyforecasted, including the JPY20 billion effect of structural reforms and the absence of the impact of last year's
refurbishment and production reduction of Number 6 blast furnace in Chiba.
As for the volume, we forecast that an increase in production of 500,000 tons will give about costive JPY10
billion. However, the big one is still the spread, which is expected to be a positive JPY145 billion, because
although export prices are lower, domestic prices will be maintained and raw material prices will be lower.
On the other hand, inventory valuation differences, etc., was negatively affected by the decline in raw material
prices and other factors. In absolute terms, however, these three items added JPY73 billion last year, but thisyear it is negative JPY25 billion, a change in the negative direction, which is a characteristic feature of thisyear's results.
As a result, excluding inventory valuation differences, we expect a large JPY150 billion improvements from
JPY73.8 billion last year to JPY225 billion this fiscal year.

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Next is comparison between 1H and 2H. The breakdown of JPY200 billion is JPY87 billion in 1H and JPY113
billion in 2H, a difference of JPY26 billion.
You can see the breakdown below, 2H will be better cost wise. In particular, since structural reforms will be
implemented in September, the effects of these reforms will be manifested in 2H, which will result in an
increase in profit for 2H.
For volume, we forecast that it will be about the same in both 1H and 2H. We foresee that the spread will be
the same in both 1H and 2H, even though the selling prices will be slightly negative and raw materials prices
will be slightly positive from 1H to 2H.

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Our initial plan was JPY190 billion for profit excluding inventory valuation differences, etc., so that we had
expected the profit per ton of steel to be around JPY9,000. However, the Company now expects to reach its
initial mid-term plan target of JPY10,000 with a profit of JPY225 billion excluding valuation differences, etc.
We have also raised our target for FY2024 from JPY230 billion to JPY260 billion as of May, and we would liketo aim for more than JPY11,000 for per-ton profit as well.

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Regarding the path to reach the mid-term plan, the forecast for FY2023 is JPY225 billion excluding inventory
valuation differences, etc. Regarding cost reductions planned for the next fiscal year, JPY42 billion is planned,
including the remaining JPY25 billion of structural reform benefits. If we achieve this, the total amount will
exceed JPY260 billion.
I think we are getting very close to our goal of JPY260 billion or more, which we mentioned in May.
Furthermore, as mentioned in others, we would like to aim for more with product-mix enhancement,
including the launch of enhanced facility of electrical steel sheets in Kurashiki next year, overhauling the extra
pricing, and overseas solution business.

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Next is engineering.
For engineering, the annual segment profit remains unchanged from the initial JPY25 billion. Orders of JPY580
billion are in line with the original plan, and sales of JPY550 billion have not changed either. We expect toreceive more orders in the field of “waste-to-resource” and “carbon neutral”, and we hope to achieve thisprofit target by making steady progress on projects that have already been ordered.

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Next is trading.
Also, for trading, our outlook has not changed. As I mentioned in the steel section, while there has been arecovery in automobiles, there has been a slow recovery in demand in other sectors. In addition, there is areduction in spreads, especially in North America, where profits had been higher. Therefore, although profits
are down compared to last year, we hope to steadily achieve profit of JPY48 billion, JPY8 billion higher than
JPY40 billion in our mid-term plan.

20

I will show some topics in terms of the progress of main initiatives.
As you can see, we have four main initiatives: shift from quantity to quality, overseas business, DX, and carbon
neutral. We have listed the contents of most recent announcements into these categories and would like tointroduce a few topics from among them.

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The first is structural reform.
The upstream facilities in the Keihin District are scheduled to be suspended around September 16. We are
steadily implementing product transfers, establishing production systems, and dealing with employees,
subcontractors, etc., and are proceeding basically as planned.
By completing structural reforms and promoting a shift from quantity to quality, we aim to reduce fixed costsby JPY45 billion by FY2024, thereby significantly lowering the break-even point.
Some of the progress toward the suspension are mentioned in the lower right-hand, and the approval toswitch production to other steel works is well underway. Capital investment in logistics and other facilities forthe establishment of a new production system has also been largely completed, including in Keihin and otherareas. We are also planning to reassign employees after confirming their intentions on the premise that theiremployment will be secured, including those at other offices. We are also working with the government todeal with partner companies.

22

Along with the progress of structural reform, Keihin's land use is also making progress.
We have already announced the partial sale of Ogimachi and the selection of a project partner for the
Minamiwatarida-Kita area, and this past June, Kawasaki City announced its land use plan for Ogishima. JFE
also plans to announce its own land development plan in conjunction with the suspension of upstream
facilities in Keihin in September.
Please refer to the figure below for the details of the use plan announced by Kawasaki City in June.

23

Next, I would like to introduce the establishment of a company with JSW to manufacture and sell the grainoriented electrical steel sheets (GO).
As we announced in a press release today, we have signed a joint venture agreement for the establishmentof grain-oriented electrical steel sheets in India. At the same time, the Company name was decided to be JSW
JFE Electrical Steel Private Limited. The investment ratio is 50-50, as already announced.
The purpose and other details of the project remain unchanged from those announced in May, but weadditionally announced that the total investment will be in the order of USD670 million. Since the investment
ratio is 50-50, each of us will bear half of this.

24

Next is the green steel JGreeX.
This is what we already announced in June. The Company plans to deliver 14,000 tons for simultaneous
adoption in four dry bulk ships. Together with eight domestic shippers, we have created the first sustainablebusiness model in which the cost of CO2 reduction is borne by the entire supply chain.
In this case, about 40% of the price of normal steels is added as premium value and sold. As shown in the
diagram below, JFE Steel supplies JGreeX steels to a shipbuilding company, and the ship owner then charters
the ship built with the steel to a shipping company. The shipping company transports the cargo. In this way,
this price is passed on to the consignor or the final user of the product, respectively, so that the entire supply
chain bears the burden of the price.

25

Finally, the product name has been decided as "J-TerraPlate" for large and heavy steel plates for wind power
generation and has now been selected for the first time.
Large and heavy steel plates for wind power generation, utilizing Kurashiki's Number 7 continuous castingmachine, have been used for the first time in the foundation structure of an offshore wind turbine, the socalled monopile. Along with continuous casting machines, we have also invested in equipment and facilities
to produce large and heavy plates at our plate mills. The investment and other measures have made theproduct ready for production, and its commercial production has started.
This is an overseas, Taiwanese project, and this is the first time that we have received an order and shippedthe product.
That is all.

This presentation material was prepared for the purpose of publicizing the status of our company's financial
results for the first quarter of FY2023. The information included in this presentation does not constitute a
disclosure under the Financial Instruments and Exchange Act and we do not guarantee the accuracy orcompleteness of the information contained within. The information included in this presentation is not an offer
to sell, or a solicitation of an offer to buy, any securities in Japan, the United States or any other jurisdiction.
The forward-looking statements regarding forecasts included in this presentation were based on information
available to us at the time when this presentation was prepared and include uncertainties. Therefore, pleaserefrain from making any investment decisions based solely on this document. Our company shall not beliable for any damages arising as a result of the use of this document.

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