JFE Holdings, Inc.
Financial Results Briefing for the Fiscal Year Ended March 2023
May 8, 2023

Presentation
Moderator: Hello, everyone. Thank you very much for your patience. We will now begin the financial results
briefing for the fiscal year ended March 31, 2023 investors meeting of JFE Holdings, Inc.
Today’s participants are Representative Director, President, and CEO Koji Kakigi, and Senior Vice President
Toshihiro Tanaka. The time allotted for the meeting will be approximately 30 minutes for presentation and 30
minutes for Q&A, for a total of 60 minutes. The question and answer session will be held collectively after thepresentation.
First, Mr. Kakigi, Representative Director, President, and CEO, will give an overview of the business highlights
announced today and the status of the 7th Medium-Term Business Plan.
Kakigi: My name is Kakigi of JFE Holdings. I will explain the progress of the 7th Medium-Term Business Plan inline with the investors meeting’s materials posted on our website today.

1Please see page three. This is the highlight of our business performance.
The leftmost page is the financial results for FY2022, and Executive Director Mr. Tanaka will give you moredetailed information later. Business profit was JPY235.8 billion, and the annual dividend was JPY80 per share,
which is roughly in line with the forecast announced in February.
The middle part is the forecast for FY2023. We will continue to improve sales prices and promote a shift fromquantity to quality through structural reforms scheduled for September of this year. Overall group businessprofit is expected to be JPY290 billion, which will surpass by JPY54.2 billion compared to the previous year.
The annual dividend is planned to be JPY100 per share. As you will see later, segment profit for the steelbusiness is planned to be JPY200 billion.
On the far right are the initiatives in the 7th Medium-Term Business Plan. As I will explain later, we are making
good progress with the priority measures.
The steel business profit per ton, excluding inventory valuation, is expected to reach JPY9,000 per ton in
FY2023. Since the mid-term target is set at JPY10,000, this represents a progress rate of 90%. For FY2024, thefinal year of the mid-term plan, in order to further increase profit, we are aiming for JPY260 billion or more,
exceeding our mid-term plan of JPY230 billion.

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Next is the summary of our mid-term key earnings targets and business results.
Mr. Tanaka will explain the details of these, but as for the actual results for FY2022, the middle part,consolidated business profit was JPY235.8 billion. In the steel business, the segment profit was JPY146.8 billion.
The profit per ton was JPY7,000, but if inventory valuation is excluded, the profit per ton was only at the
JPY3,000 level.
In the engineering business, the business fell sharply to JPY13.4 billion due to the soaring cost of materials
and equipment, as well as the worsening P&L of individual construction projects in Europe. In the tradingbusiness, on the other hand, the level is high at JPY65.1 billion, partly because the measures we have taken
so far have borne fruit, and partly because the market for steel products has remained at a high level.
As for the forecast for FY2023, as written there, consolidated business profit is JPY290 billion, ROE is 8.7%,
profit per ton is JPY9,000, and segment profit excluding inventory valuation difference is JPY190 billion.
The engineering business is expected to recover in P&L and is forecasting JPY25 billion, as the deteriorationin P&L from individual construction projects in Europe will be eliminated. The trading business is expected to
exceed the mid-term target of JPY48 billion, partly because the steel market is expected to soften somewhat.

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I will now explain the initiatives of the 7th Medium-Term Business Plan.
First, these are the main initiatives of the steel business. I will explain our efforts to improve selling prices andupgrade the product mix.
In FY2022, the spread improved significantly by JPY74 billion over the previous year by shifting various costs,
including the early reflection of raw material costs, reviewing extras, and correcting price levels. In FY2023 aswell, we plan to improve the spread by continuing to appropriately reflect the sales price in the face of rising
electricity and other costs, aiming for an increase of JPY83 billion over the previous fiscal year.
The right-hand side shows the ratio of high value-added products, which will be approximately 47% in FY2022.
In particular, we aim to increase the ratio of high value-added products by expanding sales of high-tensile
steel sheets for automobiles, electrical steel sheets for energy, and infrastructure construction materials,
which are our priority fields, to further improve sales prices and spreads.
In order to achieve our goal of 2024, we will make a major shift in quality, especially by shutting down
upstream facilities in Keihin in September this year. Also, in November of this year, we will start reinforcing
extra-thick steel plate production lines for offshore wind-power applications in Kurashiki. In addition, in 1H ofnext fiscal year, we will complete the first phase of the reinforcement of non-oriented electromagnetic steel
sheet manufacturing facilities. Through these efforts, we are making steady progress in raising the ratio ofhigh value-added products to our target of 50%.

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Next is the progress of structural reform and cost reduction.
In FY2022, we stopped steel sheet facilities for cans in the Chiba district and consolidated them in Fukuyama
district. In addition, we have steadily implemented the renovation of the Chiba No. 6 blast furnaces.
In FY2023, we will literally promote a shift from quantity to quality by suspending the Keihin upstream facilities
and completing the structural reforms. We aim to realize JPY45 billion in fixed cost reductions by FY2024,
which will significantly lower the break-even point.
The total cost reduction plan for the 7th mid-term is JPY120 billion. As you can see from the chart on the lower
right, in FY2023, we will reduce costs by JPY33 billion, including the effects of structural reforms. In FY2024,
the plan is to implement JPY42 billion, including JPY25 billion from the remaining structural reforms, for a
total of JPY120 billion.
The Keihin land use after the structural reform is also progressing smoothly, and the selection of a project
partner for the north side of the north district in the Minami-Watarida area has been completed. We havealso decided on the sale of land in Ogimachi. In addition, the land use policy of Kawasaki City will be released
this year, and based on this policy, we are planning to announce the land development plans for Ogishima in
September of this year.

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Next is the revenue of the steel business. This chart from FY2021 shows segment profit as a whole andsegment profit excluding inventory valuations etc.
Although there was a slight decline in FY2022, in FY2023, as I mentioned earlier, we are projecting a profit per
ton of JPY9,000, excluding inventory valuation. For FY2024, we are planning to achieve the goal of JPY230
billion, or more than JPY10,000 per ton, which is the target of the mid-term plan.
As described in our future growth strategy on the right, we will leverage our technologies to capture demandin growth fields. In particular, in terms of expanding sales of eco-products, as announced in February 2023,
we have decided to make a JPY50 billion scale investment to increase additional capacity of non-oriented
electrical steel sheets. This will be one of our growth strategies in the future. We have also decided to expand
sales of green steel products, which I will talk about in a moment.
As for our global strategy, we have been discussing grain-oriented electrical steel sheets JV with JSW in India,
which has been delayed due to the COVID-19 disaster, but we expect to be able to announce it around June.
We will also promote our global strategy, and through these efforts, we will develop our solutions businessoverseas.
In terms of pursuing group synergies, especially in the offshore wind power generation business, the JFE
engineering plant in Kasaoka will start operations in April next year, and we would like to capture this demandthrough synergies among the steel, engineering, and trading businesses.

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Next, I would like to discuss the path toward achieving the 7th Medium-Term Business Plan.
As I have mentioned earlier, we are projecting JPY190 billion in FY2023, excluding inventory valuation etc.. If
we add JPY42 billion in cost reductions in FY2024 to that, the total will be JPY230 billion. In addition, we will
improve the product mix by increasing the ratio of high value-added products, especially by facility enhancing
the first phase of non-oriented electrical steel sheets, which will start in 1H of FY2024, and by improving selling
prices through extra improvements and expanding the overseas solution business. By building on these efforts,
we are aiming for JPY260 billion or more, adding JPY30 billion or more to the JPY230 billion target of the 7th
mid-term plan.

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Next, I will explain our efforts in the engineering business and trading business.
In the engineering business, profit declined a bit in FY2022, but on the other hand, orders received are at arecord high due to an increase in the core infrastructure field.
We will spend JPY40 billion for the new offshore wind monopile plant I mentioned earlier, which is scheduled
to start operation in April 2024. In addition, to strengthen the foundation of our water engineering business,
we have signed an integration agreement with Tsukishima Machinery. Our aim is to become a leading
company in the domestic water supply and sewage fields.
As for the trading business, we had very high profit in FY2022. For FY2023, we expect JPY48 billion, as thesteel market is expected to soften somewhat. To mention a few topics, we will build a new plant next toZhejiang JFE Shoji, strengthen the automobile motor core press at JSA in the US, and expand the plant in
Nagoya, in order to establish the number one global distribution system for electromagnetic steel sheets.
Through these measures, we are steadily strengthening our electromagnetic steel sheet business.
In addition, to expand our overseas construction materials business, we acquired CEMCO, the third largest
structural steel frame manufacturer in the US, and entered the thin sheet construction materials field in North
America.

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Next, I will explain environmental and social sustainability.
In terms of the JFE Group’s carbon neutrality initiatives, steel will be explained on the next page. This is what
we detailed last year in September in terms of our action plan.
The lower part of the page shows the initiatives of JFE engineering. This has set a mid-term target of 12 million
tons of CO2 reduction contribution. By constructing and operating renewable energy power plants andrecycling facilities, we can contribute to the reduction of CO2 emissions compared to when power isgenerated with fossil fuels. We have contributed to the reduction of 11.14 million tons of CO2 in FY2022,
achieving up to 92% of our mid-term target.
In addition, Kyoei J&T Recycling Corporation, West Japan PET Bottle MR Center was constructed in Tsu. Thisfacility recycles 10% of the total number of PET bottles shipped nationwide, contributing to bottle-to-bottle,
i.e., by using the recycled material as a bottle once more, we are contributing to the reduction of CO2
emissions.

9Next, I will explain the emission reduction at JFE steel.
This is starting in FY2013, at which time steel was emitting 58.1 million tons of CO2. As you can see in the
middle, the mid-term target for FY2024 is to reduce CO2 emissions by 18%, or 10.5 million tons. We aremaking progress toward this goal as planned. The breakdown of the 10.5 million tons is 7.5 million tons forstructural reforms and 3 million tons for energy conservation and carbon neutrality technologies.
For FY2022, we will have to wait a bit for the official figures on the progress of this 3 million tons, but in any
case, the approval rate for capital investment contributing to this 3 million tons is over 90% as shown in thepie chart in the middle.
We are also making good progress, with facilities already in operation that can reduce 56% of our emission
reduction target. Incidentally, the rightmost graph shows the 2030 target, which is to reduce emissions by
17.4 million tons.

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Next are the investment programs to achieve the 2030 target.
As shown at the top, the goal is to reduce emissions by more than 10 million tons through energy conservation
and CN technology development. I showed you the figure of 17.4 million tons earlier, but since we will reduce
7.5 million tons through structural reforms, we need to reduce 10 million tons through other technologies.
We have approved JPY110 billion for capital investment related to this by FY2022.
As shown in the figure below, for example, JPY48 billion for upgrading to a high-efficiency coke oven in
Fukuyama, resulted in a 160,000-ton reduction. As shown in the middle, 2 million tons will be reduced byexpanding the use of scrap in converter furnaces and utilizing reduced iron. Of the electric furnaces at thebottom, 100,000 tons will be reduced at the electric furnace in Sendai. Introducing large, huge-efficiency EAF
in Kurashiki is a little further down the road, but we will be able to reduce 3 million tons by stopping the blast
furnace and introducing a large electric furnace.
Also, as part of this announcement, an electric furnace for stainless steel will be installed in Chiba, and theinvestment will be JPY15 billion for a 450,000-ton reduction.
As shown in the third item in the upper row, we expect to make investments in the amount of JPY1 trillion by
FY2030.

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Here are some of the topics.
This is the electric furnace in the Chiba area that I mentioned earlier. We have decided to introduce an arc
electric furnace in Chiba. The reduction in CO2 emissions will be 450,000 tons, the investment will be JPY15
billion, and the furnace will be in operation in 2H of FY2025.
In the middle is the introduction of climate change indicators in the calculation criteria for executive
compensation. As an incentive to accelerate our efforts to address climate change issues, we have introduced
a climate change indicator in the performance-linked compensation for executives. Through this,compensation will be calculated based on the degree of achievement of KPIs that are established year by year.
Thirdly, as part of our green steel initiatives, we have decided on the name JGreeX for JFE’s green steel brand.
We plan to introduce green steel products using the mass balance method in 1H of FY2023. The volume isplanned to be 200,000 tons. When we finally achieve our emission reduction target for FY2030, we expect tobe able to supply up to 5 million tons of green steel products.

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Last but not least, I would like to talk about the progress in the development of ultra-innovative technologies.
We have positioned the period after 2030 as the innovation period, and are currently making steady progressin a multi-track manner with support from the GI Fund and other sources with respect to ultra-innovativetechnologies. This year marks the timing for the construction of test furnaces for the carbon recycling blast
furnace, high-efficiency large electric furnace, and direct reduction ironmaking. We are now in the process ofconducting tests to see which of our products can finally be used in actual equipment.
As the center callout indicates, when electricity EAF is used, scrap alone will inevitably be insufficient. As wehave already announced that we will use HBI, or reduced iron, we are considering the commercialization ofthis business in a joint venture with Emirates Steel Arkan and ITOCHU Corporation.
I have explained that the medium-term plan is progressing as planned, and that we expect a slight increase inrevenue. This concludes my explanation.

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Tanaka: Next, I, Tanaka will explain again the financial results for FY2022 and the outlook for FY2023.
First of all, I would like to give you an overview of the Group’s overall financial results for FY2022. As
mentioned at the beginning of this presentation, business profit was JPY235.8 billion and profit attributableto owners of parent was JPY162.6 billion. The blue area in the middle of the table below shows the actual
results and figures for FY2022. Revenue was JPY5,268.7 billion, business profit was JPY235.8 billion, total
segment profit was JPY221 billion, and profit attributable to owners of parent was JPY162.6 billion.
The rightmost column shows the difference from the forecast announced in February. We have almost
achieved the figures as announced in February.

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The next page shows the figures by segment. In the lower center is a breakdown of segment profits.
The steel business, engineering business, and trading business were JPY146.8 billion, JPY13.4 billion, andJPY65.1 billion, respectively. As you can see from the comparison with the February announcement on the far
right, the steel business fell JPY3.2 billion short of the JPY150 billion forecast. The difference is due to gaps inasset disposal and other factors. The spread and volume, et cetera, have not changed significantly.
The engineering business was almost as planned. The trading business was JPY65.1 billion compared to theforecast of JPY60 billion, an increase of JPY5.1 billion. This positive result was due to higher-than-expectedsales volume at JFE Shoji on a non-consolidated basis and at group companies in North America.

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Next, I would like to talk about cash flow and financial indicators.
As you can see above, the balance of interest-bearing debt at the end of FY2022 was JPY1,862.9 billion. At thetime of the announcement in February, we had said that the total would be JPY1.95 trillion, so the figure wasalmost JPY90 billion less than that. As a result of our efforts to maximize the efficiency of various expenditures,such as working capital, this was less than planned.
The left-hand side shows the breakdown of cash flow. In addition to profit and amortization, we generated
JPY44.3 billion in cash this fiscal year as a result of asset reduction.
On the right is the D/E ratio. The D/E ratio for FY2022 was 3.7 times, compared to the target of 3 times for the
7th mid-term plan.
Although not stated, we had set a mid-term target of 70% D/E ratio. As of the end of FY2022, the D/E ratio
was 67.8%, reaching the mid-term target two years ahead of schedule. This was achieved two years ahead ofschedule due in part to the inclusion of subordinated debt in the capital account.
The bottom of the table shows the net interest-bearing debt balance of JPY1,743.5 billion as of the end of
FY2022. Interest-bearing debt increased by JPY13.5 billion compared to the previous year, but there was also
an increase in cash and deposits. As a result, net interest-bearing debt decreased slightly by JPY4 billion fromthe previous year.

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Next, I would like to show you the breakdown of JFE’s steel financial results.
Various items are organized in this table. The third line from the top shows segment profit excluding inventory
valuation difference, et cetera, which was JPY32.2 billion for 1H and JPY41.6 billion for 2H, resulting in a figureof JPY73.8 billion.
As for crude steel production, the February forecast was 24 million tons, but the figure was slightly higher
than that, at 24.1 million tons.
The second item from the bottom, the average price of steel products, was JPY129,900 for 2H, and JPY130,800
for the full year. This was also exactly the same as the previous forecast. Last year the price was JPY103,700,
which means that the price increased by approximately JPY27,000 during the year.
The yen weakened considerably during the period, and the average exchange rate for FY2022 was JPY135.1.
Since the yen was JPY112.1 last year, the average annual depreciation was JPY23.

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This is the breakdown of the change in the steel business segment profit from the previous year.
As you can see at the bottom, changes in costs were zero, and the breakdown is the same as previously
explained. Cost reduction actions had a positive impact of JPY23 billion, but the impact of the Chiba No. 6
blast furnace renovation had a negative impact of JPY13 billion, and the cost increase due to the production
cutback in 2H had a negative impact of JPY10 billion, resulting in a net zero impact.
As for volume and composition, crude steel was affected by a decrease of 1.78 million tons versus the previous
year, and then the spread had a positive impact of JPY220 billion. As stated, there was an increase in the costof raw materials, mainly coking coal, but in terms of selling prices, the spread improved by JPY220 billion,
basically due to a significant increase in domestic sales prices. Foreign exchange, as I mentioned earlier, hada negative impact of JPY93 billion due to the impact of yen depreciation. Inventory valuation, as you can see,
had a total negative impact of JPY121 billion due to the reduction of the positive margin compared to lastyear.
As for other factors, the overseas group companies had a tough time in FY2022, resulting in a large negative
impact compared to the previous year. The negative impact of unit energy costs is also included in this figure.
The breakdown is as shown.

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Next, I would like to talk about the engineering and trading businesses.
As I mentioned at the beginning of this presentation, the table below shows that the engineering businessreceived JPY564.9 billion in orders and generated JPY512.5 billion in revenue, both of which are record highs.
As for the trading business, segment profit was JPY65.1 billion, which, as I have already mentioned, is a record
high.

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Next, regarding the FY2023 results, we have summarized business environment recognition in one slide.
First, regarding the sales environment, we expect that domestic demand for steel products will gradually
improve, mainly due to recovery in the automotive sector, as the supply of parts for semiconductors and otherproducts eases, although some domestic demand will be affected by soaring prices and labor shortages.
As for overseas, while there is inflation and a slowdown in economic activity in developed countries due tomonetary policy, China’s economy is recovering after the lifting of the zero-COVID-19 policy. Although thecurrent pace is a little sluggish, we believe that the economy will gradually recover over a one-year period,
and demand and market conditions for steel products will gradually recover in stages.
Meanwhile, as for raw materials, iron ore has strengthened this year due to expectations of a recovery indemand for steel products in China. We expect that this level will continue in the future.
Coking coal prices temporarily rose considerably due to weather factors in Australia. Since then, the market
has been softening, but we expect the market to return a little more from the current soft level and that it
will rise.
Taking these factors into consideration, we are assuming that crude steel production for steel alone will be
about 25 million tons, which is an increase of about 900,000 tons from the previous year’s 24.1 million tons.
As demand recovers, we will continue to improve sales prices and shift from quantity to quality.

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The following is the breakdown of the changes in P&L of the steel business between FY2022 and FY2023.
The segment profit is expected to increase by JPY53.2 billion from JPY146.8 billion in FY2022 to JPY200 billion
in FY2023, with a significant positive impact of JPY63 billion in costs, as shown below. This is due to the
expected JPY20 billion effect of structural reforms, as mentioned earlier, and the elimination of the negative
impact of blast furnace refurbishment and production cutbacks in FY2022, resulting in a positive impact of
JPY23 billion. In addition to these, there is the usual cost reduction of JPY20 billion. All together, the total isestimated to be JPY63 billion.
In terms of volume, as I mentioned earlier, the impact of the 900,000 ton increase is JPY18 billion.
Then we are looking at a positive spread of JPY75 billion. As for raw materials, the cost of coking coal and ironore together is expected to decrease slightly from the previous year, resulting in a positive P&L outlook. In
addition, we expect to improve the spread by JPY75 billion by further improving selling prices, mainly in Japan.
The right side of the arrow shows the absolute value of the inventory valuation for FY2023, and it is expected
to be quite small, causing a negative impact of JPY63 billion compared to the previous year. In addition to this,we expect an increase in unit energy costs, depreciation costs, and other expenses, and we project a total
profit of JPY200 billion for FY2023.
The absolute value of P&L excluding inventory valuation, as I mentioned earlier in point number four, will bemuch smaller, amounting to about JPY10 billion, and the profit excluding these factors is expected to reachthe level of JPY190 billion.

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Next is the engineering business and trading business.
The engineering business is assumed to receive orders of JPY580 billion, an increase from FY2022 and a further
record high.
The profit is expected to recover to JPY25 billion by eliminating one-time losses on individual construction
projects in Europe, making progress on projects that have already been ordered and reflecting the price hikes
in materials and equipment.
On the other hand, the trading business will come to JPY48 billion, a significant decrease of JPY17 billion fromthe previous year. This is due to the fact that we are seeing spread contraction in Japan and we expect a
gradual recovery in demand, as is the case with steel.
We expect a decrease in profit from the previous year because we expect a narrowing of the spread in Japan,
which has been high, and a narrowing of the spread overseas, especially in North America, which has beenstrong up to now. However, since the target of the mid-term plan is JPY40 billion for FY2024, we are projecting
JPY48 billion, JPY8 billion more than the mid-term target.

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In summary, we are forecasting sales of JPY5,540 billion, business profit of JPY290 billion, and net profit
attributable to owners of parent of JPY190 billion for FY2023.

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Finally, we discuss dividends.
For FY2022, the annual dividend is JPY80 per share and the year-end dividend is JPY30 per share, as previously
announced. For FY2023, the annual dividend is newly announced at JPY100 per share, based on the forecastof JPY190 billion in profit attributable to owners of parent and a dividend payout ratio of approximately 30%.
The breakdown of the interim and year-end dividends will be announced again in the future, and we hope
you will understand that this announcement is just guidance for the annual dividend.
That is all.
[END]

This document does not purport to address the requirements of the Financial Instruments and Exchange Act. It
is the responsibility of the user of this document to determine the correctness and integrity of the informationin regard to its use. The forecasts presented are prepared on the basis of information available at the time of thebriefing session and include uncertain factors. It is strongly recommended NOT to rely only on the forecasts inthis document when making investment decisions. In no respect will JFE Holdings, Inc. incur any liability forany damage arising out of, resulting from, or in any way connected to the use of the information contained
herein.

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