JFE Holdings’ Financial Results for First Halfof Fiscal Year 2018 Ending March 31, 2019
— All financial information has been prepared in accordance with generally accepted accounting principles in Japan —(Note: The following is an English translation of an original Japanese document)

October 30, 2018
Official name:
Listings:
Code:
English URL:
Representative:
Contact:

JFE Holdings, Inc.
Tokyo and Nagoya stock exchanges
5411
www.jfe-holdings.co.jp/en
Eiji Hayashida, President and CEO
Hidetsugu Tawara, Manager, Public Relations Section,
Investor Relations and Corporate Communications
Department
Phone:+81-3-3597-3842
Scheduled date to submit Quarterly Securities Report:
November 2, 2018
Scheduled date to start paying dividends:
November 30, 2018
Preparation of supplementary materials for quarterly results: Yes
Quarterly results briefing:
Yes(Figures are rounded down to the nearest million yen.)

1. Consolidated Results in First Half of Fiscal 2018 (April 1 to September 30, 2018)(1) Consolidated Operating Results (cumulative total)
Year-onyearchangeNet
sales(million yen)

Operatingprofit(million yen)(%)

1H FY 2018

1,907,261

10.5

116,303

1H FY 2017

1,725,305

15.1

96,556Year-onyearchangeProfitYear-onYear-onattributable
Net income
year
year
to owners
per sharechangechangeof parent(yen)Ordinary
profit(million yen)

(%)

20.5
-

(%)

(%)

(million yen)Net
incomeper share[fully diluted](yen)

143,500

41.4

110,48526.9

191.70-101,464-

87,038-150.95-

Note: Comprehensive income: 98,293 million yen in 1H FY 2018 (29.9%)75,652 million yen in 1H FY 2017 (-)(2) Consolidated Financial Position
Total assets

Net assets

Equity capital ratio(million yen)(million yen)(%)

End 1H FY 2018

4,501,077

2,075,313

44.7

End FY 2017

4,440,910

2,009,911

43.9

Note: Shareholders' equity: 2,013,768 million yen as of September 30, 2018
1,949,574 million yen as of March 31, 2018

2. Dividends
Dividend per share (yen)Interim

FY 2017

80.00

30.00

FY 2018-

45.00

FY 2018 (estimate)
Note:

Year-end

95.00

50.00

50.00

Revisions to dividend forecast announced most recently: No

3. Forecasts of Consolidated Financial Results in Fiscal 2018 (April 1, 2018 to March 31, 2019)
Net
sales
(million yen)

FY 2018

4,000,000

Year-onyearchange(%)

8.7

Operatingprofit(million yen)

220,000

Year-onyearchange(%)(10.8)

Ordinary
profit(million yen)

250,000

ProfitYear-onYear-onattributable
Net income
year
year
per share
to ownerschangechangeof parent
(yen)
(%)

15.6

(million yen)

175,000

Note: Revisions to consolidated financial results forecasts announced most recently: Yes

(%)

21.0

303.75

Notes
1. Significant changes in subsidiaries during the term (changes in designated subsidiaries resulting in changes in consolidated
structure): No
2. Application of special accounting methods in the preparation of quarterly consolidated financial statements: No
3. Changes in accounting policies, accounting estimates and restatements
1) Changes in the accounting policies resulting from amendments to accounting standards: Yes
2) Changes other than 1) above: No
3) Changes in accounting estimates: No4) Restatements: No
Note: For more details, see “Change in Accounting Policies” on page 6 of the attached document.
4. Number of outstanding shares (common stock)
1) Outstanding shares at the end of term (including treasury stock)
As of September 30, 2018: 614,438,399 shares
As of March 31, 2018: 614,438,399 shares
2) Treasury stock at the end of term
As of September 30, 2018: 38,553,170 shares
As of March 31, 2018: 37,919,494 shares
3) Average number of shares during the term (quarterly consolidated cumulative period)
1H FY 2018: 576,334,490 shares
1H FY 2017: 576,597,569 sharesThis document is not subject to quarterly review procedures.
Explanation of Appropriate Use of Results Forecasts, and Other Matters of Note
1. Forecasts are based on information available on the date of publication of this document as well as rational assumptions that
we have made regarding certain factors.
2. Notes to the financial results can be viewed at the JFE Holdings website.

Attachments
1. Consolidated Financial Statements and Notes ············································································ 2(1) Consolidated Balance Sheets ···························································································· 2(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ········· 4Consolidated Statements of Income (First Half) ··································································· 4Consolidated Statements of Comprehensive Income (First Half) ············································· 5(3) Notes to Consolidated Financial Statements·········································································· 6Notes Pertaining to the Presumption of a Going Concern ······················································· 6Notes In Case of Significant Changes to Shareholders’ Equity ················································ 6
Change in Accounting Policies ························································································· 6
Additional Information ···································································································· 6
4. Reference ··························································································································· 7

11. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheets(million yen)
As of
As of
March 31, 2018 September 30, 2018
AssetsCurrent assets:
Cash and deposits
Notes and accounts receivable – trade
Merchandise and finished goods
Work in progress
Raw materials and supplies
Other current assets
Allowance for doubtful accounts
Total current assets
Non-current assets:
Property, plant and equipment:
Machinery, equipment and vehicles, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets:
Investments securities
Shares of subsidiaries and associates
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

2

76,111

92,075855,730
351,961
60,292
438,086
148,125(2,188)
1,928,119

757,564
405,697
86,102457,077
154,271(1,677)
1,951,111

699,324489,588513,335
1,702,248
83,724

721,509490,946
510,963
1,723,418
86,400325,413
312,880
90,216(1,691)
726,818
2,512,791
4,440,910

325,907
328,061
87,961(1,783)
740,1462,549,966
4,501,077

(million yen)
As of
As of
March 31, 2018 September 30, 2018
Liabilities
Current liabilities:
Notes and accounts payable – trade
Short-term loans payable
Commercial papers
Current portion of bonds
Provision
Other current liabilities
Total current liabilities
Non-current liabilities:
Bonds payable
Long-term loans payable
Provision
Net defined benefit liability
Other non-current liabilities
Total non-current liabilities
Total liabilities

471,897285,542
6,000
15,0008,918
402,927
1,190,286

464,919
206,282
34,0009,051
375,728
1,089,982

80,000944,376
39,348
127,435
49,552
1,240,712
2,430,999

100,000
1,020,343
37,249127,000
51,188
1,335,781
2,425,764

147,143646,639
1,211,796(179,070)
1,826,508

147,143646,639
1,292,080(180,612)
1,905,251

91,35994,458(186)
16,2889,791
5,812
123,065
60,3372,009,911
4,440,910

240
16,271(8,453)
5,999
108,51761,544
2,075,313
4,501,077

Net assets
Shareholders’ equity:
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income:
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets3(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
IncomeConsolidated Statements of Income (First Half)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income:Interest income
Dividend income
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Loss on retirement of non-current assets
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Expenses for treatment of PCB waste
Total extraordinary loss
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

4

First Half of
Fiscal 2017

(million yen)First Half of
Fiscal 2018

1,725,305
1,466,404
258,900
162,343
96,556

1,907,261
1,618,084
289,176
172,873
116,303

660
4,716
12,857
10,585927
5,300
26,12815,36528,81947,722

6,553
7,646
9,712
23,911
101,464

6,265
6,398
7,860
20,524
143,500

23,152
23,152

-

3,850
3,850
120,766
30,87389,893
2,854
87,038

143,500
30,317113,183
2,697
110,485

Consolidated Statements of Comprehensive Income (First Half)

ProfitOther comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive income:(breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

5First Half of
Fiscal 201789,893(million yen)First Half of
Fiscal 2018
113,183(15,267)535(2,959)
1,514

2,519
575
(6,624)216

1,936(14,240)
75,652(11,575)(14,889)
98,29372,583
3,069

95,954
2,339

(3) Notes to Consolidated Financial Statements
Notes Pertaining to the Presumption of a Going Concern
There is no item for this period.

Notes In Case of Significant Changes in Stockholders’ Equity
There is no item for this period.
Change in Accounting Policies
Implementation of partial amendments to accounting standards used in the tax effect accounting
system.
Effective from the first quarter of fiscal 2018, JFE Holdings applied revisions to the accounting
standards used in its tax effect accounting system (Corporate Accounting Standard Application
Guideline No.28, February 16, 2018); these amended the way in which temporary differences infuture taxable amounts, such as the stocks of affiliated firms, were handled. These changes wereapplied retroactively; quarterly consolidated financial statements and consolidated financial
statements for the last quarter and for fiscal 2017 were created after application of these changes.
As the result, the balance sheet entry for the previous fiscal year’s other non-current liabilities
decreased by 3,347 million yen.
This also affected the net capital amount shown at the beginning of the previous fiscal year; retained
earnings at the beginning of the previous fiscal year increased by 3,347 million yen.
These changes had no effect on profit before income taxes in the first half of fiscal 2017.

Additional Information
Due to JFE Holdings applying revisions to the accounting standards used in its tax effect accounting
system (Corporate Accounting Standard Application Guideline No.28, February 16, 2018) effectivefrom the first quarter of fiscal 2018, deferred tax assets were categorized under “investment andother assets”, and deferred tax liabilities were categorized under “non-current liabilities”.

6

4. Reference(1) Consolidated Results in First Half and Earnings Forecasts for Fiscal 2018

FY 2018

FY 2017

Steel BusinessEngineering BusinessTrading Business
Adjustments
Net Sales
Operating Income
Non-operating Income(Expenses)
Steel BusinessEngineering BusinessTrading Business
Adjustments
Ordinary Income
Extraordinary Income (Loss)
Profit before income taxes
Tax Expense and Profit
Attributable to Noncontrolling Interests
Profit Attributable to Ownersof Parent

Change(billion yen)
(Reference)
Full-year
Forecasts
Announced on
July 31, 2018

1H

Full year

1H

Full year*

1H

Full year*

1294.7160.2
916.2(645.9)1725.396.5

2,715.4
391.3
1,907.9(1,336.1)
3,678.6
246.6

1,386.6
192.8
1,018.2(690.4)
1907.2116.3

2,880.0480.0
2,120.0(1,480.0)
4,000.0
220.0

91.9
32.6
102.0
(44.5)
181.9
19.8

164.6
88.7
212.1
(143.9)321.4(26.6)

4.9
84.6
2.5
16.2
(2.0)
101.4
19.3

(30.3)
198.8
19.3
33.0
(34.9)
216.3
(2.9)

27.1
114.1
6.9
19.1
3.2
143.5
-

30.0
190.0
22.0
35.0
3.0
250.0
-

22.2
29.5
4.4
2.9
5.2
42.1
(19.3)

60.3
(8.8)
2.7
2.0
37.9
33.7
2.9

120.7

213.3

143.5

250.0

22.8

36.7

200.0
25.0
35.0
260.0
260.0

(33.7)(68.7)(33.0)(75.0)

0.7(6.3)(80.0)

87.0

144.6

110.4

175.0

23.4

30.4

180.0
*estimate(2) Consolidated Financial IndicesFiscal 2018
(estimate)
6.3%
5.8%
8.7%
440.0 billion yen
1,450.0 billion yen
2,055.0 billion yen
60.8%

Fiscal 2017
Return on Sales (ROS)1
Return on Assets (ROA)2
Return on Equity (ROE)3
EBITDA4
Debt Outstanding
Shareholders' Equity
D/E Ratio5

5.9%
5.2%
7.6%
388.8 billion yen
1,330.9 billion yen
1,949.5 billion yen
58.1%

Change
0.4%
0.6%
1.1%
51.2 billion yen
119.1 billion yen
105.5 billion yen
2.7%

1

ROS = Ordinary profit / net sales
ROA = (Ordinary income + Interest expenses) / Total assets (average)
3
ROE = Profit attributable to owners of parent / Shareholders' equity,
4
EBITDA = Ordinary profit + Interest expenses + Depreciation
5
D/E ratio = Debt outstanding / Shareholders' equity. For debt having a capital component*, a portion of its issue price is deemed to becapital, as assessed by rating agencies.
2*Debt having a capital component (subordinated borrowings)

Borrowing Execution Date

Amount Borrowed

June 30, 2016
March 19, 2018

200.0 billion yen
300.0 billion yen

Assessment of Equity
Content
25%
25%

7

Amount Deemed to be
Capital50.0 billion yen
75.0 billion yen

(3) Crude Steel Production (JFE Steel)
FY 2017

Non-consolidated
Consolidated

1Q
7.12
7.53

2Q
6.98
7.38

1H
14.10
14.91

FY 2018

Non-consolidated
Consolidated

7.10
7.51

6.94
7.33

14.04
14.84

3Q
7.23
7.63

4Q
7.14
7.52

(million tons)
2H
Full year
14.37
28.46
15.15
30.06
14.00*
14.80*(4) Shipments (JFE Steel on non-consolidated basis)28.00*
29.60**estimate(million tons)
Full year

1Q

2Q

1H

3Q

4Q

2H

FY 2017

6.14

6.28

12.42

6.38

6.50

12.88

25.30

FY 2018

6.13

5.93

12.06

(5) Export Ratio on Value Basis (JFE Steel on non-consolidated basis)
1Q

2Q

1H

3Q

4Q

2H

(%)
Full year

FY 2017

42.1

44.2

43.2

45.1

45.9

45.5

44.4

FY 2018

42.4

44.2

43.3

(6) Foreign Exchange Rate (Yen/US dollar)
1Q

2Q

1H

3Q

4Q

2H

(JPY/USD)
Full year

FY 2017

111.5

110.9

111.2

112.6

109.7

111.2

111.2

FY 2018

108.1

110.9

109.5

110*

110*
*estimate(7) Average Selling Price (JFE Steel on non-consolidated basis)
1Q

2Q

1H

3Q

4Q

(thousand yen/ton)
2H
Full year

FY 2017

74.4

73.3

73.8

77.0

76.5

76.8

FY 2018

79.3

81.9

80.6

(8) Engineering Business Orders (including inter-segment transactions)
Field
Environment
EnergyInfrastructure, others
Total

FY2017
234.2
126.9
134.4
495.5

FY2018230.0*
125.0*
145.0*
500.0*(billion yen)
Change
(4.2)
(1.9)
10.6
4.5
*estimate(9) Debt Outstanding, Interest Expense and Cash and Deposits(JFE Holdings, consolidated basis)
Debt outstanding
As of(billion yen)March 31, 2018
1,330.9
March 31, 2019
1,450.0*
Cash and deposits
As ofMarch 31, 2018
76.1
March 31, 2019
65.0*

Interest expense
FY 2017
FY 2018(billion yen)
13.0
13.0*

*estimate8

75.3

(10) Capital Investment and Depreciation and Amortization (JFE Holdings, consolidated basis)(billion yen)
FY 2017

FY2018

Capital Investment

257.2

270.0*(on construction basis)

Depreciation & Amortization

159.5

180.0**estimate(11) Breakdown of Changes in Ordinary Income for Steel Businessa. 1H of FY 2018, compared to same period of FY 2017(billion yen)

Change42.1

Ordinary income

1H of FY 2017
101.4

1H of FY 2018
143.5

Steel Business-

Cost reductions

10.0

-

Sales volume and mix

(4.0)

-

Sales prices and raw materials prices
Unrealized gains (losses) on
inventories and others

55.0

-

Others(38.5)

-

Total

29.5

7.0

Engineering Business, Trading Business,
Adjustment(Increase in metals and materials costs,
depreciation costs, disposal losses, etc)

12.5

b. FY 2018 (forecast), compared to FY 2017(billion yen)

Change33.7

Ordinary income

FY 2017216.3

FY 2018
250.0

Steel Business-

Cost reductions

15.0

-

Sales volume and mix(10.0)-

Sales prices and raw materials prices

82.0

-

(55.0)-

Metals and materials
Cost for strengthening the
manufacturing base
Unrealized gains (losses) on
inventories
Others

-

Total

-

(30.0)(10.0)(8.0)(8.8)

Engineering Business, Trading Business,
Adjustment

42.6

c. FY 2018 (forecast), compared to previous forecast(billion yen)

Change(10.0)

Ordinary income
Steel Business-

Sales volume and mix

(5.0)

9

Previous
260.0

FY 2018250.0

-(20.0)-

Sales prices and raw materials prices
Cost for strengthening the
manufacturing base
Unrealized gains (losses) on
inventories
Others-Total(10.0)

-

2.0
8.0
5.0

Engineering Business, Trading Business,
Adjustment

0###10