JFE Holdings’ Financial Results for First Quarterof 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)

July 31, 2018
Official name:
Listings:
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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+81-3-3597-3842
August 3, 2018
Yes
Yes

Phone:
Scheduled date to submit Quarterly Securities Report:
Preparation of supplementary materials for quarterly results:
Quarterly results briefing:(Figures are rounded down to the nearest million yen.)

1. Consolidated Results in First Quarter of Fiscal 2018 (April 1 to June 30, 2018)(1) Consolidated Operating Results (cumulative total)
Net
sales
(million yen)

Year-onyearchangeOperatingprofit(million yen)(%)

1Q FY 2018936,336

10.6

59,347

1Q FY 2017846,888

14.3

49,899Note: Comprehensive income:Year-onyearchange(%)

Ordinary
profit(million yen)

18.9-

ProfitYear-onYear-onattributable
Net income
year
year
to owners
per sharechangechangeof parent
(yen)
(%)

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

(yen)

79,55741.4

61,4307.6

106.56-56,282-

57,118

-

99.06

-

49,829 million yen in 1Q FY 2018 (48.8%)
33,497 million yen in 1Q FY 2017 (-)(2) Consolidated Financial Position
Total assets

Net assets

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

End 1Q FY 2018

4,437,480

2,028,419

44.4

End FY 2017

4,440,910

2,009,911

43.9

Note: Shareholders' equity: 1,968,093 million yen as of June 30, 2018
1,949,574 million yen as of March 31, 2018

2. Dividends
Dividend per share (yen)InterimYear-end

FY 2017

80.00

30.00

50.00

FY 2018 (estimate)

95.00

45.00

50.00

Note:

Revisions to dividend forecast announced most recently: Yes

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

1H FY 2018
FY 2018(%)

Operatingprofit(million yen)

Year-onyearchange(%)

Ordinary
profit(million yen)

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

(million yen)(%)

2,020,000

17.1

117,000

21.2

135,000

33.1

95,0009.1

164.78----260,000

20.2

180,000

24.4

312.22

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

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 June 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 June 30, 2018: 37,926,873 shares
As of March 31, 2018: 37,919,494 shares
3) Average number of shares during the term (quarterly consolidated cumulative period)
1Q FY 2018: 576,515,055 shares
1Q FY 2017: 576,604,663 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 Quarter)······························································· 4Consolidated Statements of Comprehensive Income (First Quarter) ········································· 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

As ofMarch 31, 2018

(million yen)
As ofJune 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

78,855855,730
351,961
60,292
438,086
148,125(2,188)
1,928,119

784,907373,13177,804462,198
142,737(1,740)1,917,893

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

706,344489,515
513,155
1,709,015
84,615

325,413
312,880
90,216(1,691)
726,818
2,512,791
4,440,910

328,828
317,234
81,662(1,769)725,955
2,519,586
4,437,480

As ofMarch 31, 2018

(million yen)
As ofJune 30, 2018

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

460,056
232,333
14,00015,0008,319
375,388
1,105,098

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

100,000
988,582
38,064
126,585
50,7301,303,962
2,409,061

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

147,143646,639
1,243,045(179,086)
1,857,741

91,35996,739(186)
16,2889,791
5,812
123,065
60,3372,009,911
4,440,910(673)
16,271(7,978)
5,992
110,352
60,3252,028,419
4,437,480

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
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 Quarter)

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
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

4

First Quarter of
Fiscal 2017

(million yen)First Quarter of
Fiscal 2018846,888
716,089
130,798
80,89849,899936,336
790,590
145,745
86,39759,347

257
4,325
8,267
5,601

329
4,961
14,145
10,48818,45229,924

3,145
3,815
5,109
12,07056,282

3,089
2,951
3,673
9,714
79,557

21,41921,41977,701
19,49458,207
1,089
57,11879,557
16,92062,6371,206
61,430Consolidated Statements of Comprehensive Income (First Quarter)

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 Quarter of
Fiscal 2017
58,207(million yen)First Quarter of
Fiscal 2018
62,637(24,105)46(2,112)
460

5,057
(135)
(7,033)166

1,000(24,710)33,497(10,862)(12,807)49,82932,3591,137

48,734
1,094

(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 quarter of fiscal 2017.
Additional information
Due to JFE Holdings applying revisions to the accounting standards used in its tax effectaccounting system (Corporate Accounting Standard Application Guideline No.28, February 16,2018) effective from the first quarter of fiscal 2018, deferred tax assets were categorized under“investment and other assets”, and deferred tax liabilities were categorized under “non-current
liabilities”.

6

4. Reference(1) Consolidated Results in First Quarter and Earnings Forecasts for First Half of Fiscal 2018(billion yen)
FY 2017

FY 2018

1Q

1H

Full year

1Q

1H

Steel Business

636.4

1,294.7

2,715.4

685.9

Engineering Business

72.3

160.2

391.3

86.8

Trading Business

465.1

916.2

1,907.9

512.1

Adjustments(327.0)(645.9)(1,336.1)

Net Sales

846.8

1,725.3

3,678.6

Operating Profit

49.8

96.5

Non-operating Income (Expenses)

6.3

4.9

Steel Business

48.6

84.6

Engineering Business

0.4

Trading Business

FY2018
Forecast

ChangeFull year(April 26)
Full year Fully year

1Q

1H

1,450.0

49.5

155.3

190.0

14.5

29.8

1,050.0

47.0

133.8

(348.4)(670.0)(21.4)(24.1)

936.3

2,020.0

89.5

294.7

246.6

59.3

117.0

9.5

20.5

(30.3)

20.2

18.0

13.9

13.1

198.8

64.4

110.0

200.0

15.8

25.4

1.2

160.0

2.5

19.3

1.6

5.0

25.0

1.2

2.5

5.7

25.0

8.3

16.2

33.0

10.1

18.5

35.0

1.8

2.3

2.0

33.0

Adjustments

(1.1)

(2.0)

(34.9)

3.3

1.5

0

4.4

3.5

34.9

-

Ordinary Profit

56.2

101.4

216.3

79.5

135.0

260.0

23.3

33.6

43.7

220.0

Extraordinary Income (Loss)

21.4

19.3

(2.9)

-

-

-

(21.4)(19.3)

2.9

Profit before income taxes

77.7

120.7

213.3

79.5

135.0

260.0

1.8

14.3

46.7

Tax Expense and Profit (Loss)
Attributable to Non-controlling
Interests(20.5)(33.7)(68.7)(18.1)(40.0)(80.0)

2.4(6.3)(11.3)

Profit Attributable to Owners of Parent

57.1

87.0

144.6

61.4

95.0

180.0

4.3

8.0

35.4

(2) Consolidated Financial IndicesFiscal 2017

1H Fiscal 2018

1

Return on Sales (ROS)

5.9%

6.7%

0.8%

Return on Assets (ROA)2

5.2%

6.3%

1.1%

Return on Equity (ROE)3

Change

7.6%

9.6%

2.0%

EBITDA4

388.8 billion yen

226.0 billion yen-

Debt Outstanding

1,330.9 billion yen

1,360.0 billion yen

29.1 billion yen

Shareholders' Equity

1,949.5 billion yen

2,000.0 billion yen

50.5 billion yen

58.1%

58.1%

0.0%

D/E Ratio5
1

ROS = Ordinary profit / net sales
ROA (full year) = (Ordinary profit + Interest expenses) / Total assets (average)
ROA (first half) = (Ordinary profit + Interest expenses) x 2 / Total assets (average)
3
ROE (full year) = Profit attributable to owners of parent / Shareholders' equity
ROE (first half) = Profit attributable to owners of parent x 2 / 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
Assessment of Equity Content
June 30, 2016
200.0 billion yen
25%
March 19, 2018
300.0 billion yen
25%

7

Amount Deemed to be Capital
50.0 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

7.20*
7.60*

14.30*
15.10*

3Q
7.23
7.63

4Q
7.14
7.52

(million tons)
2H
Full year
14.37
28.46
15.15
30.06

*estimate(4) Shipments (JFE Steel on non-consolidated basis)
1Q

2Q

1H

3Q

4Q

2H

(million tons)
Full year

FY 2017

6.14

6.28

12.42

6.38

6.50

12.88

25.30

FY 2018

6.13

6.60*

12.70**estimate(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

47*

45*
*estimate(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*

109*
*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*

80*

75.3
*estimate(8) Engineering Business Orders (including inter-segment transactions)(billion yen)
Field
Environment
EnergyInfrastructure, others
Total

1H
FY2017
114.5
52.6
54.9
222.2

1H
FY2018122.0*
84.0*
84.0*
290.0*

8

Change
7.5
31.4
29.1
67.8
*estimate(9) Breakdown of Changes in Ordinary Income for Steel Businessa. First quarter of FY 2018, compared to same period of FY 2017
Change23.3

Ordinary income(billion yen)

1Q of FY 201756.21Q of FY 2018
79.5

Steel Business-

Cost reductions
Sales volume, sales prices and raw
materials prices
Unrealized gains (losses) on inventories

9.0

(4.0)

-

Others(24.2)

-

Total

15.8

35.0

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

7.5

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

Change43.7

Ordinary income

FY 2017216.3

FY 2018
260.0

Steel Business--

Cost reductions
Sales volume, sales prices and raw
materials prices
Metals and materials
Cost for strengthening the
manufacturing base
Unrealized gains (losses) on inventories-

Others(10.8)

-

Total

1.2

-

20.0
90.0
(50.0)(30.0)(18.0)Engineering Business, Trading Business,
Adjustment

42.5

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

Change40.0

Ordinary income
Steel Business- Sales volume, sales prices and raw
materials prices- Unrealized gains (losses) on inventories-

50.0(10.0)

Total

40.0

###

9

Previous
220.0

FY 2018260.0