JFE Holdings’ Financial Results for Fiscal Year 2021
ended March 31, 2022
— 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 6, 2022
JFE Holdings, Inc.
Tokyo 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 24, 2022
June 27, 2022
June 24, 2022
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 2021 (April 1, 2021 to March 31, 2022)(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 2021

4,365,145

35.3

416,466－

388,535－

289,793－

288,058－

355,249 461.8

FY 2020

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

63,231

Basic earnings per
share

Diluted earnings per
share

(yen)

(yen)

Profit ratio to equity
attributable toowners of parent

Profit before tax ratio
to total assets

Business profit ratio
to revenue

(%)

(%)

(%)

FY 2021500.28500.12

15.7

7.8

9.5

FY 2020(37.98)(37.98)

(1.3)

(0.1)

(0.4)

(Reference): Equity in earnings of affiliates:

FY 2021: 99,730 million yen

FY 2020: 14,239 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 20215,287,909

2,070,739

1,988,268

37.6

3,452.82

FY 2020

4,654,972

1,760,154

1,679,223

36.1

2,916.37

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 2021298,738(288,034)(57,427)

101,773

FY 2020

247,274(164,221)(30,092)

142,416-

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 2020

10.00

-

0.00

-

10.00

5,765

-

0.3

FY 2021140.00

-

60.00

-

80.00

80,70928.0

4.4

FY 2022(forecast)

-

-

-

-

-

-

Note: Fiscal 2022 dividends are yet to be determined.

3. Forecasts of Consolidated Financial Results in Fiscal 2022 (April 1, 2022 to March 31, 2023)
Forecasts of consolidated financial results for the full fiscal year ending in March 2023 are not provided herein because thecompany has determined that it is not possible to calculate reasonable financial forecasts at this time. The reasons for thisare described in "1. Qualitative Information (4) Outlook for Fiscal 2022" on page 3 of the attached document.

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, 2022: 614,438,399 shares
As of March 31, 2021: 614,438,399 shares
2) Treasury stock at the end of the term
As of March 31, 2022: 38,599,423 shares
As of March 31, 2021: 38,646,342 shares
3) Average number of shares during the term
FY 2021: 575,793,363shares
FY 2020: 575,829,040 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 2022" 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 2021
(4) Outlook for Fiscal 2022
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.
During the reporting period, the global economy continued recovering from the slump brought on by the COVID-19
pandemic, although varying by country and region. Japan also continued to show signs of picking up, despite production
activity in some industries being hurt by difficulties with parts supply. Toward the end of the fiscal year, however, theUkraine situation introduced new uncertainties, including soaring resource prices.
The JFE Group worked to improve its selling prices in order to pass on the rising prices of raw materials as soon as
possible. Concurrently, productivity was further enhanced and costs were reduced by steadily executing blast furnace
repairs and capital investments designed to drive digital transformation (DX). Through such measures, and partly
because of recovered steel demand and rising steel product prices, consolidated business profit and profit attributable toowners of the parent company improved substantially from the previous fiscal year.
Looking at operating results by segment, starting with steel business, consolidated crude steel production came to27.26 million tons, up substantially from the previous year as steel demand recovered amid improved economic
conditions. Revenue increased significantly to 3,173.4 billion yen, reflecting company efforts to raise selling prices aswell as higher market prices for steel products, and also increased sales volumes. Despite increased costs due tosoaring raw-materials prices, segment profit improved substantially to 323.7 billion yen. The improvement was
supported by higher selling prices, increased sales volumes, cost reductions, better earnings at group companies inJapan and abroad, and one-time factors including unrealized gains on inventories.
In engineering business, revenue climbed to 508.2 billion yen thanks to corporate acquisitions. Although equipment
and material costs rose, segment profit increased to 26.0 billion yen on revenue growth, cost reductions and otherfavorable factors.
In trading business, sales revenue of 1,231.7 billion yen and segment income of 55.9 billion yen both increased
significantly as the global demand for steel products rebounded from a sharp fall in the previous fiscal year. The market
for steel products was strong, especially in North America, where earnings were particularly favorable.
On an overall consolidated basis, revenue of 4,365.1 billion yen represented a substantial increase from the previous
fiscal year. Business profit of 416.4 billion yen was also a major improvement. Exceptional items, including an
impairment loss on fixed assets, totaled 16.2 billion yen, but JFE Holdings nevertheless recorded profit before tax of
388.5 billion yen and profit attributable to the owners of the parent company of 288.0 billion yen.
Note: Business income is profit before tax, excluding financial income and one-time items of a materially significant value. It is abenchmark indicator of the company’s consolidated earnings. The operating performance of each segment is presented in terms ofsegment profit, a measure including financial income in business profit. Exceptional items are one-time items of a materially significant
value.

2

(2) Overview of Financial Position
Total assets of 5,287.9 billion yen at the end of fiscal 2021 (March 31, 2022) were up 633.0 billion yen from theprevious fiscal year-end to due primarily to increased inventories. Total liabilities of 3,217.1 billion yen increased by322.3 billion yen to due mainly to increases in trade and other payables. Total equity of 2,070.7 billion yen rose by 310.6
billion yen to due mainly to higher retained earnings.

(3) Overview of Cash Flow in Fiscal 2021
Cash inflow of 298.7 billion yen from operating activities versus cash outflow of 288.0 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 10.7 billion yen.
Net cash from financing, due primarily to repayments of long-term borrowings, came to 57.4 billion yen outflow.
Interest-bearing liabilities outstanding at the fiscal yearend increased 43.3 billion yen to 1,849.4 billion yen. Thebalance of cash and cash equivalents fell 40.7 billion yen to 101.7 billion yen.
Note: Interest-bearing liabilities are bonds payable, borrowings, and lease obligations.

(4) Outlook for Fiscal 2022
Demand in the steel business is expected to remain firm both in Japan and overseas, supported by a projected
recovery in automobile production and a pickup in the economy. If this situation continues, JFE Steel’s non-consolidated
crude steel production is expected to total about 26 million tons in fiscal 2022.
However, uncertainties regarding the global economy began rising day by day as the situation in Ukraine intensified,leaving the outlook highly unclear. Since Russia launched its invasion, coal prices have remained volatile and steel
supply/demand and market conditions have been uncertain, obliging the company to determine that it cannot issue
reasonable forecasts at this stage. Accordingly, JFE’s consolidated earnings forecast for fiscal 2022 is pending.
As for JFE Group Seventh Medium-Term Business Plan, which sets out main measures for ensuring environmental,social and economic sustainability, progress is being achieved as planned. In response to climate-change issues
outlined in the JFE Group Environmental Vision for 2050, the target for steel-business CO2 emissions-reduction by
FY2030 has been increased to at least 30% from the fiscal 2013 level. Reduction measures are actively being pursue atexisting facilities in addition to wide-ranging technology development. In engineering business, ESG issues are steadily
being addressed, including expansion of “Waste to Resource” business and the construction of a monopile plant foroffshore wind-power generation. Regarding economic sustainability, the company is shifting from quantity to quality inthe steel business along with the implementation of digital-transformation and growth strategies in each operatingcompany. Although business profit exceeded the target of 320 billion yen in fiscal 2021, actual profit and loss excluding
inventory valuation differences, etc., was around 220 billion yen, so the goal in the new fiscal year is to increase profit byanother 100 billion yen or so, mainly in the steel business. In addition to cost reductions, the company aims to improve
profitability by shifting from quantity to quality to support higher selling prices, realizing the effects of completed
structural reforms, and upgrading the product mix.

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, 2022

As ofMarch 31, 2021
AssetsCurrent assets
Cash and cash equivalents

142,416

101,773

Trade and other receivables

751,824

796,955

Contract assets

101,282

123,888

Inventories

785,632

1,227,935

Income taxes receivable

14,748

1,009

Other financial assets

13,35922,830

Other current assets

79,430118,235

Total current assets

1,888,694

2,392,629

1,772,303

1,850,779

Goodwill

6,200

8,174

Intangible assets

95,055

108,547

Right-of-use asset

111,938

98,417

Investment property
Investments accounted forusing equity method
Retirement benefit asset

58,31057,660355,242454,642

22,15924,079Deferred tax assets

86,01460,372Other financial assets

244,505

217,217

Other non-current assets

14,547

15,388

Total non-current assets

2,766,278

2,895,280

4,654,972

5,287,909

Non-current assets
Property, plant and equipment

Total assets

4

As ofMarch 31, 2021

(million yen)
As ofMarch 31, 2022

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

496,995

678,377

277,027

339,726

43,03832,580

Income taxes payable, etc.

15,09050,547

Provisions

11,51812,345

Other financial liabilities

86,836

143,406

Other current liabilities

208,510

236,856

Total current liabilities

1,139,017

1,493,840

1,529,112

1,509,739

141,186

125,927

Provisions

24,10522,663

Deferred tax liabilities

7,591

12,065

Other financial liabilities

45,41743,976

Other non-current liabilities

8,387

8,957

Total non-current liabilities

1,755,800

1,723,330

2,894,818

3,217,170

Share capital

147,143

147,143

Capital surplus

652,465

652,233

Retained earnings

1,029,976

1,294,875

Treasury shares(180,639)(180,580)

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

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

30,27874,596

1,679,223

1,988,268

80,93082,470Total equity

1,760,154

2,070,739

4,654,972

5,287,909

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 2021
(April 1, 2021 –March 31, 2022)

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

3,227,285

4,365,145

Cost of sales(2,912,766)(3,694,690)

Gross profit

314,519

670,454

Selling, general and administrative expenses
Share of profit of entities accounted for using
equity method
Other income(324,057)(360,415)

14,23999,73025,782

37,524

Other expenses(43,394)(30,828)

Business profit (loss)(12,911)

416,466

Profit on sales of fixed assets

28,021－

Impairment losses
Loss on liquidation ofsubsidiaries and associates
Operating profit(7,544)(11,355)－(4,918)7,566

400,192

Finance income

1,686

1,549

Finance costs(14,184)(13,205)

Profit (loss) before tax(4,930)388,535

Income tax expense(14,133)(98,741)

Profit (loss)(19,063)289,793(21,868)

288,058

2,804

1,734

(19,063)289,793

Basic earnings (loss) per share (yen)(37.98)500.28

Diluted earnings (loss) per share (yen)(37.98)500.12

Profit (loss) attributable to
Owners of parent
Non-controlling interests
Profit (loss)

Earnings per share6Consolidated statement of comprehensive income(million yen)
Fiscal 2021
(April 1, 2021 –March 31, 2022)

Fiscal 2020
(April 1, 2020 –March 31, 2021)(19,063)289,793

12,0208,97846,751

5,984

13,284(3,954)72,056

11,007

Exchange differences on translation of foreign
operations(609)

16,707

Effective portion of cash flow hedges

11,673

4,931

(825)

32,808

10,23854,447

82,29565,45563,231

355,249

Owners of parent

60,036352,318

Non-controlling interests

3,195

2,930

Comprehensive income

63,231

355,249

Profit (loss)
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

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 to7(3) Consolidated statement of changes in equity
Fiscal 2020 (April 1, 2020 – March 31, 2021)(million yen)
Equity attributable to owners of parent
Other components of equity
Net change infair value ofequityinstruments
Remeasurements
designated asof defined benefit
measured at
plans
fair value
through othercomprehensive
incomeCapitalsurplusRetainedearnings

Treasuryshares147,143

652,430

1,002,076(180,637)

Profit (loss)－－(21,868)－－－

Other comprehensive income

－

－

－

－

12,18659,433

Share capital

Balance as of April 1, 2020－

39,768Comprehensive income－－(21,868)－

12,18659,433Purchase of treasury shares

－

－

－

(65)

－

－

Disposal of treasury shares

－

(22)

－

26

－

－

Dividends

－

－

－

－

－

－

Share-based payment transactions

－

(23)

－

37

－

－

Changes in scope of consolidation
Changes in ownership interest in
subsidiaries
Transfer from other components ofequity to retained earnings
Transfer to non-financial assets

－

－

－

－

－

－

－

80

－

－

－

－

－

－

49,768－(12,186)(37,581)

－

－

－

－

－

－

Other

－

－

－

－

－

－

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

34

49,768(1)(12,186)(37,581)

147,143

652,465

1,029,976(180,639)－

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

(31,941)(1,813)

Noncontrollinginterests

Total

Total equity

Total

6,012

1,627,026

79,526

1,706,552－－－(21,868)

2,804(19,063)

Other comprehensive income(314)

10,59981,90481,904

390

82,295

Profit (loss)

Comprehensive income(314)

10,59981,90460,036

3,195

63,231

Purchase of treasury shares

－

－

－

(65)

－

(65)

Disposal of treasury shares

－

－

－

4

－

4

Dividends

－

－

－

－

(1,743)(1,743)

Share-based payment transactions

－

－

－

13

－

13

Changes in scope of consolidation
Changes in ownership interest in
subsidiaries
Transfer from other components of equity
to retained earnings
Transfer to non-financial assets

－

－

－

－

694

694

－

－

－

80

(854)

(774)

－

－

(49,768)

－

－

－

－

(7,871)(7,871)(7,871)－(7,871)

Other

－

－

－

－

112

112

－

(7,871)(57,639)(7,838)(1,791)(9,629)(32,256)914

30,278

1,679,223

80,9301,760,154

Total transactions with owners
Balance as of March 31, 2021

8

Fiscal 2021 (April 1, 2021 – March 31, 2022)(million yen)
Equity attributable to owners of parent
Other components of equity

Capitalsurplus

Share capital

Retainedearnings

TreasurysharesNet change infair value ofequityinstruments
Remeasurements
designated asof defined benefit
measured at
plans
fair value
through othercomprehensive
income147,143

652,465

1,029,976(180,639)－

61,620

Profit (loss)－－

288,058－－－

Other comprehensive income

－

－

－

－

9,015

2,120

Comprehensive income－－

288,058

－

9,015

2,120

Purchase of treasury shares

－

－

－

(68)

－

－

Disposal of treasury shares

－

47

－

77

－

－

Dividends－－(40,355)－－－

Share-based payment transactions

－

123

－

50

－

－

Changes in scope of consolidation
Changes in ownership interest in
subsidiaries
Transfer from other components ofequity to retained earnings
Transfer to non-financial assets

－

－

－

－

－

－

－

(403)

－

－

－

－

－

－

17,195－(9,015)(8,180)

－

－

－

－

－

－

Other

－

－

－

－

－

－

－

(232)

(23,159)

58(9,015)(8,180)147,143652,233

1,294,875(180,580)－

55,560

Balance as of April 1, 2021

Total transactions with owners
Balance as of March 31, 2022

Equity 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, 2021

(32,256)914

Noncontrollinginterests

Total

Total equity

Total

30,278

1,679,223

80,9301,760,154－－－

288,058

1,734

289,793

Other comprehensive income

48,343

4,780

64,26064,2601,195

65,455Comprehensive income

48,343

4,780

64,260352,318

2,930

355,249

Purchase of treasury shares

－

－

－

(68)

－

(68)

Disposal of treasury shares

－

－

－

125

－

125

Dividends－－－(40,355)(1,237)(41,592)

Share-based payment transactions

－

－

－

173

－

173

Changes in scope of consolidation
Changes in ownership interest in
subsidiaries
Transfer from other components of equity
to retained earnings
Transfer to non-financial assets

－

－

－

－

232

232

－

－

－

(403)

324

(79)

－

－

(17,195)

－

－

－

－

(2,745)(2,745)(2,745)

Other

－

－

－

－

(709)

(709)

－

(2,745)(19,941)(43,274)(1,389)(44,664)

16,086

2,949

74,596

1,988,268

82,4702,070,739

Profit (loss)

Total transactions with owners
Balance as of March 31, 2022

9(2,745)

(4) Consolidated Statement of Cash Flow
Fiscal 2020
(April 1, 2020 –March 31, 2021)(million yen)
Fiscal 2021
(April 1, 2021 –March 31, 2022)

Cash flows from operating activities
Profit (loss) before tax(4,930)388,535

Depreciation and amortization

236,354

252,283

Increase (decrease) in allowance(2,696)(2,917)

Interest and dividend income(7,179)(5,417)

Interest expenses

13,844

12,652(14,239)(99,730)(71,111)(23,333)

86,569(431,449)(42,479)

174,808

Other

61,61939,122

Subtotal

255,751

304,554

Share of loss (profit) of investments accounted forusing equity method
Decrease (increase) in trade and otherreceivables
Decrease (increase) in inventories
Increase (decrease) in trade and other payables

Interest and dividends received

14,85735,450Interest paid

(12,362)(11,559)

Income taxes refund (paid)(10,972)(29,706)

Cash flows from operating activities

247,274

298,738(308,123)(313,328)

29,547

2,711

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(5,731)(5,557)

Proceeds from sale of investments

128,898

33,449Other(8,812)(5,309)(164,221)(288,034)

Cash flows from investing activities

10(million yen)
Fiscal 2021
(April 1, 2021 –March 31, 2022)

Fiscal 2020
(April 1, 2020 –March 31, 2021)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings

3,396

13,834

Increase (decrease) in commercial papers(88,999)－

Proceeds from long-term borrowings

224,077

122,422

Repayments of long-term borrowings(214,826)(103,959)

60,00035,000

Proceeds from issuance of bonds－(30,000)

(65)

(65)

－

(40,355)

Other(13,674)(54,303)

Cash flows from financing activities(30,092)(57,427)

Payments for redemption of bonds
Payments for purchase of treasury shares
Dividends paid to owners of parent

Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

2,752

6,080

55,712(40,643)

Cash and cash equivalents at beginning of period

86,704142,416

Cash and cash equivalents at end of period

142,416

101,77311

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

Steel

Engineering

Trading

Total(million yen)Amountrecorded in
Adjustments1 consolidated
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(446,192)

－

Total

2,255,216

485,750

932,510

3,673,477(446,192)

3,227,285

Segment profit(65,461)

24,07320,098(21,289)(4,118)(25,408)

Profit on sales of fixed assets

28,021

Impairment losses(7,544)

Loss before tax(4,930)

Segment assets
Other items
Depreciation andamortization
Impairment losses
Finance income

3,864,262

478,146717,2705,059,679(404,707)

4,654,972

211,645

14,62911,065

237,340(987)

236,353(6,351)(59)(1,133)(7,544)－(7,544)

689

171

1,000

1,861

(174)

1,686

(11,880)(838)(2,053)(14,772)(14,184)
Finance costs
588
Share of profit (loss) of(3,582)entities accounted for using
16,873277
671
17,822
14,239equity 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 follow:(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.

12

Fiscal 2021 (April 1, 2021 to March 31, 2022)

Steel

Engineering

Trading

Total(million yen)Amountrecorded in
Adjustments1 consolidated
financialstatements

Revenue
Revenue from externalcustomers
Intersegment revenue

2,790,084

496,834

1,078,225

4,365,145－

4,365,145

383,391

11,380

153,537

548,309(548,309)

－

Total

3,173,475

508,215

1,231,763

4,913,454(548,309)

4,365,145

323,776

26,00555,973405,756(946)

404,809

Segment profit
Impairment losses
Loss on liquidation ofsubsidiaries and associates
Profit before tax
Segment assets
Other items
Depreciation andamortization
Impairment losses
Finance income(11,355)(4,918)388,535
4,425,035

501,332

953,200

5,879,568(591,659)

5,287,909

225,486

16,143

11,743

253,372(1,089)252,283(7,308)(2,778)(1,269)(11,355)－(11,355)

633

182

951

1,767

(218)

1,549

(11,543)(691)(13,205)
Finance costs(1,819)(14,054)
848
Share of profit (loss) ofentities accounted for using
95,995773
1,375
98,144
1,586
99,730equity method
Investments accounted for
405,191
15,017
19,921
440,131
14,511
454,642using equity method(875)
Capital expenditures
304,967
24,742
12,100341,811
340,935
1 Adjustments are as follows.
(1) Adjustments to segment profit include corporate profit not allocated to a reportable segment: 49,716 million
yen, elimination of dividend income from each reportable segment: (48,855) million yen, and share of profit
of entities accounted for using equity method related to Japan Marine United Corporation:181 million yen;elimination of other intersegment transactions: (1,989) million yen. Corporate profit is profit of the Company.
(2) Adjustments to segment assets: Corporate assets not allocated to a reportable segment: 54,197 million yen
and elimination of intersegment receivables and payables, etc.: (645,856) million yen. Corporate assets areassets of the Company.

13Per-share information(1) Basic earnings per share and diluted earnings per share
Fiscal 2020
(April 1, 2020
– March 31, 2021)

Fiscal 2021
(April 1, 2021
– March 31, 2022)

Basic profit (loss) per share (yen)(37.98)500.28

Diluted profit (loss) per share (yen)(37.98)500.12(2) Basis for calculation of basic earnings per share and diluted earnings per share
Fiscal 2020
(April 1, 2020
– March 31, 2021)
Profit (loss) attributable to owners of the parent company(million yen)Amount not attributable to common shareholders of theparent company (million yen)
Profit (loss) used in calculation of basic earnings per
share (million yen)
Profit adjustments (million yen)
Profit (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 2021
(April 1, 2021
– March 31, 2022)(21,868)

288,058－－(21,868)

288,058－－(21,868)

288,058

575,829575,793－187

575,829575,980

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 567,000 and about 548,000,
respectively.
Material subsequent events
There is no item for this period.

14

4. Supplementary information(1) Consolidated financial performance

Steel BusinessEngineering BusinessTrading Business
Adjustments
Revenue
Business profit

1

Finance income / costs
Segment Profit

FY2020

FY2021

ChangePercentage change

Full year

Full year

Full year

Full year(billion yen)(billion yen)(billion yen)(%)

2,255.2
485.7
932.5(446.1)

3,173.4
508.2
1,231.7(548.3)

918.2
22.5
299.2
(102.2)

40.7
4.6
32.1
-

3,227.2

4,365.1

1,137.9

35.3

A(12.9)

416.4

429.3

-

B

(12.4)(11.6)

0.8-(65.4)

323.7

389.1

-

24.0

26.0

2.0

8.3

20.0

55.9

35.9

179.5

(4.1)

(0.9)

3.2

-

(25.4)

404.8

430.2

-

Steel BusinessEngineering BusinessTrading Business
Adjustments
Total

A+B

Exceptional Items 2

20.4(16.2)(36.6)

-

(4.9)

388.5

393.4

-

(16.9)(100.4)(83.5)-(21.8)

288.0

309.8

-

Profit before tax
Tax

ExpenseandProfit(Loss)

Attributable to Non-controlling Interests
Profit Attributable to Owners of Parent

1 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 Indices
Return on Sales (ROS)

Fiscal 2020

Fiscal 2021

Change(0.4%)

9.5%

9.9%

1

Return on Assets (ROA)2(0.3%)

8.4%

8.7%

Return on Equity (ROE)3(1.3%)

15.7%

17.0%

EBITDA4

223.4 billion yen

668.7 billion yen

445.3 billion yen

Interest-bearing debt outstanding

1,806.1 billion yen

1,849.4 billion yen

43.3 billion yen

8.1x

2.8x

(5.3x)

1,679.2 billion yen

1,988.2 billion yen

309.0 billion yen

93.2%

80.8%

(12.4%)

5

Debt / EBITDA multiple

Equity attributable to owners of parent
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
Amount Borrowed
Assessment of Equity Content Amount Deemed to be Capital(or Bond Issuance Date)(or Amount of Bond)
June 30, 2016
167.5 billion yen
25%
41.9 billion yen*March 19, 2018
300.0 billion yen
25%
75.0 billion yen
June 10, 2021
35.0 billion yen
50%
17.5 billion yen*
*Prepayment of subordinated loan of 32.5 billion yen raised on June 30, 2016 and fundraising for a new subordinated bond of 35 billion yen
on June 10, 202115

(3) Crude Steel Production (JFE Steel)

FY 2020

Non-consolidated
Consolidated

FY 2021

Non-consolidated
Consolidated(million tons)

1Q

2Q

1H

3Q

4Q

2H

Full year

4.79
5.09
6.25
6.59

5.38
5.68
6.45
6.80

10.17
10.77
12.70
13.39

6.27
6.59
6.49
6.85

6.32
6.60
6.69
7.02

12.59
13.19
13.18
13.87

22.76
23.96
25.88
27.26

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

1Q

2Q

1H

3Q

4Q

2H

Full year

FY 2020

4.59

4.75

9.34

5.42

5.72

11.15

20.49

FY 2021

5.26

5.56

10.83

5.63

5.92

11.55

22.38

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

(%)

1Q

2Q

1H

3Q

4Q

2H

Full year

FY 2020

44.2

40.2

42.2

40.3

44.3

42.4

42.3

FY 2021

43.2

49.3

46.5

45.9

43.6

44.7

45.5

(6) Foreign Exchange Rate (Yen/US dollar)(JPY/USD)

1Q

2Q

1H

3Q

4Q

2H

Full year

FY 2020

107.7

105.9

106.8

104.8

104.7

104.8

105.8

FY 2021

109.8

110.0

109.9

113.1

115.3

114.2

112.1

(7) Average Selling Price (JFE Steel on non-consolidated basis)(thousand yen/ton)

1Q

2Q

1H

3Q

4Q

2H

Full year

FY 2020

75.3

71.0

73.1

73.4

78.8

76.2

74.8

FY 2021

87.6

101.0

94.5

107.6

116.7

112.2

103.7

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

Field

FY2020

FY2021

ChangeWaste to Resource
Carbon Neutral
Combined utility services
Core Infrastructure

220.0
36.0
11.0
234.1

203.9
87.4
13.4
201.1

(16.1)
51.4
2.4(33.0)

Total

501.1

505.8

4.7

b. Order Backlog(billion yen)

End of FY2020

End of FY2021

Change

549.0

560.1

11.1

(9) Capital Investment and Depreciation and Amortization (JFE Holdings)(billion yen)

FY 2020

FY2021

Capital Investment

342.3

340.9

Depreciation & Amortization

236.3

252.2

(on construction basis)

16

(10) Breakdown of Changes in Segment Profit
a. FY 2021, compared to FY 2020
(billion yen)
ChangeSteel Business

-

Cost

30.0

Capital investment effects, expanded
use of low-cost raw materials, etc.

-

Sales volume and mix

60.0

Increased volume due to recovered
demand for steel products
Improved spreads, despite sharply
higher costs of primary raw materials,
due to early reflection of these costs
and higher selling prices on improved
supply-demand and market conditions-

Sales prices and raw materials

103.0

-

Unrealized gains (losses) on inventories

228.0

-

Others(31.9)

-

Total

389.1

Engineering Business

2.0

Trading Business

35.9

Adjustment

3.2

Improved earnings of domestic andoverseas group companies, rising
prices of metals and scrap, etc.

Increased sales revenue, improved
profit due to cost reductions, etc.
Increased profit due to recovered
demand in Japan and overseas, mainly
North America, higher steel prices, etc.
Improved profit/loss of shipbuildingrelated equity-method affiliates, etc.

b. FY 2021, compared to previous forecast(billion yen)
ChangeSteel Business
-

Cost

0.0

-

Sales volume and mix

(3.0)

-

Sales prices and raw materials

10.0

-

Unrealized gains (losses) on inventories

18.0

-

Others

(4.3)

-

Total

20.7

Engineering Business, Trading Business, Adjustment

4.0

###

17

Crude steel (standalone) volume rosefrom 26.0 million tons to 25.88 million
tons

Improvement of sales price including
early reflection of main raw material
costs
Improved earnings of domestic andoverseas group companies, rising
metals/materials prices and fuel costs,
etc.