JFE Holdings, Inc.
Q2 Financial Results Briefing for the Fiscal Year Ending March 2022
November 5, 2021

Presentation
Moderator: We would now like to begin the Investor Meeting of JFE Holdings, Inc.
I would like to introduce the attendees. Masashi Terahata, Representative Director, Executive Vice President.
Toshihiro Tanaka, Senior Vice President.
The duration of the session will be 60 minutes, consisting of a 30‐minute presentation and a 30‐minute Q&A
session.
Mr. Terahata, Representative Director and Executive Vice President, will give a few words.
Terahata: I am Terahata. Thank you very much for taking the time out of your busy schedule to participate intoday's Investor's Meeting.
The forecast consolidated business profit for FY2021 has been revised upward by JPY10 billion from theprevious announcement in August, to JPY360 billion.
Profit in the trading business is expected to increase due to higher market prices in Japan and North America.
In the steel business, sales prices are expected to improve from the previous announcement, mainly in Japan,
but prices for coking coal, metals, and other commodities continue to rise.
The forecast for segment profit remains unchanged at JPY280 billion. We believe that such a rise in purchaseprices will be a major factor in our outlook for the current fiscal year, and we will continue to vigorously
promote efforts to improve selling prices.
Mr. Tanaka, Senior Vice President, will now explain the details.

1Tanaka: I would now like to explain in accordance with the Investor Meeting material posted on our website
today.
First, let's look at the financial results for the first half of FY2021. Please refer to page 4.
Since the second half of the previous fiscal year, demand for steel products has been strong against the
backdrop of continued economic recovery in countries around the world, and market prices have risen,
resulting in a significant recovery in earnings, particularly in the steel business.
As you can see, revenue increased by approximately 30% year on year.
As for the profit items after business profit, the last fiscal year we had a loss of over JPY100 billion. This time,
we have made a significant improvement compared to that.

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The following page shows the results by segment.
Revenue increased in the steel business and the trading business due to the increase in the volume of steel
products and the rise in market prices.
The total segment profit for the first half of FY2021 was JPY193.2 billion, but compared to the first half of
FY2020, the steel business turned from a loss to a surplus, a significant improvement of JPY294.7 billion.
In addition, segment profit of the engineering business was JPY11.1 billion, which is an increase of JPY2.4
billion from the last fiscal year.
In addition, the trading business recorded a segment profit of JPY25.6 billion, which is a significant increaseof 3.5 times compared to the last fiscal year.
The recovery in demand for steel products and rising market prices were the major factors. In the case of the
trading business in particular, the significant improvement in the earnings of overseas subsidiaries has beena major contributor.

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Next, I would like to explain our business forecast for FY2021.
This table shows the comparison with the previous forecast announced in August. The full‐year revenue
forecast was revised upward by JPY170 billion to JPY4,340 billion for the year.
The forecast for business profit is JPY360 billion, segment profit JPY350 billion, and profit attributable toowners of parent JPY250 billion.
The first half results of FY2021 were almost in line with the previous forecast.
On the other hand, our full‐year forecast for business profit, segment profit, and profit attributable to ownersof parent have all been revised upward by JPY10 billion.

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The figures on the next page are the breakdown by segment. I will not go into them here.

5This table compares the financial forecasts with the results of the last fiscal year.
For the full year, revenue will increase by about 35% to JPY4,340 billion.
Last fiscal year, we posted a loss of JPY12.9 billion in business profit, a loss of JPY25.4 billion in segment profit,
and a loss of JPY21.8 billion in profit attributable to owners of parent.
Compared with that, the outlook for the current fiscal year has improved significantly, and the trend is similar
to that of the first half.
The next slide shows the breakdown of the above figures by segment. I would like to skip this as well, so let's
move on.

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Next is the forecasts for cash flow and debt/EBITDA ratio.
As you can see on the lower right, the balance of interest‐bearing debt at the end of FY2021 is expected to be
JPY1,850 billion. Compared with the last fiscal year's total of JPY1,806.1 billion, it is expected to increase by
over JPY40 billion.
As you can see from the cash flow forecast on the left, we are using net profit and depreciation andamortization to cover CAPEX and investments and dividend payment. In addition to this, we will reduce assets
and generate about JPY50 billion in cash flow, but on the other hand, cash outflow from operations is expected
to increase significantly due to the rise in raw material prices, and we expect a slight increase in debt.
However, if you look at the graph on the right, EBITDA is expected to be JPY610 billion, which corresponds tothe debt/EBITDA ratio of 3 times.
The target of the 7th mid‐term business plan is 3 times, so we will reach this target by the end of this fiscal
year.

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Next, dividends.
As previously announced, the Board of Directors has resolved to pay an interim dividend of JPY60 per share.
The year‐end dividend is undecided at this time, as it will be considered based on future performance trends.

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In this section, I will explain the contents of each business company in detail.
First, here are JFE Steel's first half results of FY2021.
Segment profit for the first half of FY2021 was JPY158.5 billion, which is JPY1.5 billion lower than, but almost
in line with, the previous forecast.
Compared to the first half of FY2020, the production volume of crude steel on a standalone basis was 12.7
million tons, an increase of more than 2.5 million tons from 10.17 million tons in the same period of the last
fiscal year.
However, compared to the previous forecast in August of just under 13 million tons, the production volume
decreased by just under 300,000 tons. Production has been slightly reduced due to the effects of heavy rains
and minor problems.
The third line from the bottom shows the average sales price of steel products. The actual figure for this firsthalf of FY2021 was JPY94,500, up JPY21,400 from JPY73,100 in the first half of FY2020. In particular, for theperiod from July to September in 2021, the average price was JPY101,000, which was the first time in a longtime that our average price was in the JPY100,000 range.

9I would like to talk about the breakdown of the increase/decrease in profit. First, the breakdown of the JPY1.5
billion decrease from the previous forecast for the first half of FY2021 to the actual results is as follows.
The decrease in production volume by less than 300,000 tons had a negative impact of JPY6 billion.
On the other hand, increase in selling prices had a positive impact of JPY3 billion.
In addition, the valuation difference on inventories had a positive impact of JPY5 billion, while the impact of
the rise in prices of metals, scrap, etc. and other commodities was seen, which is included in “others” section.
As a result, segment profit decreased by JPY1.5 billion from the previous forecast.

10In comparison with the first half of FY2020, there was a significant improvement of JPY294.7 billion. The
breakdown is as follows: JPY15 billion due to cost reduction, JPY45 billion due to volume increase of over 2.5
million tons, and JPY34 billion due to spread improvement.
As for the spread improvement, both selling prices and prices of raw materials have increased significantly.
The selling price increase was mainly due to the export market improvement. As for raw materials, the rise iniron ore prices had an overwhelming impact.
Inventory valuation had a JPY158 billion positive impact, and JPY42.7 billion improvement was made by otherfactors.
The "Others" section includes improvements at domestic and overseas subsidiaries of about JPY70 billion,
while rising prices for metals and scrap etc. had a negative impact of JPY40 billion.
These were the 2 main factors of “Others” section.

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Next, I would like to talk about the current business environment, which is the premise for the forecast for
the fiscal year.
In Japan, demand is strong, especially in the manufacturing industry, and we believe that the major trend ofrecovery in demand for steel products will continue unchanged.
As you can see in the graph below, the domestic steel consumption for the third quarter of FY2021 is expected
to increase compared to the same period of FY2020 or the second quarter of FY2021. However, with regard
to automobile production, we expect 8.2 million units for the current fiscal year due to the impact of partsand semiconductor shortages.
The previous forecast was for 9.2 million units, which means a decrease of 1 million units, and this reductionin production has already been seen mainly in the first half of FY2021.
In any case, we will need to continue to closely monitor the automobile production. In the lower right‐handcorner, we have included an overview of the outlook for each sector.
As for automobiles, the production cutback was mainly in the first half of FY2021, and we expect an increasein production from the first half to the second half of FY2021. Automobile manufacturing companies are also
forecasting a recovery from December.
As for shipbuilding, orders for new ships are on an upward trend due to rising cargo movements and charter
rates along with the recovery of the global economy. We believe that the amount of orders which have alreadywon almost recovers to a stable level.

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As for other manufacturing industries, demand for construction equipment used for infrastructure andhousing is very strong. In addition, the industrial machinery business is expected to be firm due to active
capital investment related to semiconductors and EVs.
As for civil engineering, the outlook remains unchanged from the previous forecast. Due to seasonal factors,
steel demand in the second half of FY2021 is expected to be higher than in the first half.
With regard to building, redevelopment projects, large‐scale projects, and distribution warehouses are
expected to remain firm, as in the previous forecast, while medium‐scale projects, which had been slightly
weaker, are beginning to move forward.

As for the overseas business environment, in general, we assume that demand for steel products will continue
to recover.
As for China, as you know, the policy of curbing crude steel production and exports is continuing. As long asthat is the case, we expect the supply‐demand situation to remain tight.
In the lower left graph, the bar graph shows China's crude steel production by month. The government has
stated that China's crude steel production in CY2021 will not exceed that of CY2020, so given the fact that thecountry produced a considerable amount of steel in the first half of the year, it is calculated that production
will have to be significantly reduced in the half of CY2021. The green dotted line on the bar graph indicatesthat the average production in the second half of CY2021 needs to be below this line not to show an increaseof annual production compared to the previous year. As the production in September was considerably
reduced, the total production for the second half is expected not to exceed the previous year’s level.

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On the right side, you see information on the situation in each country. I believe that market prices in China
is as I just mentioned and will remain firm due to the rising cost of main raw materials.
In India, although there have been some exports to Asia, we expect domestic demand to recover due to thepeak out of COVID‐19 and the fall demand season.
Russian mills are exporting steel at lower prices in various places since the sales volume and auto production
are declining in EU. However, with the recovery of automobile production, the export destination will returnto EU and Turkey, and prices are expected to increase at a certain level.
As you can see below, the power shortage in China has had an impact on the manufacturing industry, but it
has also had an impact on ferroalloys, causing the market price to rise dramatically. I think we have to becareful in this area as well.
In Southeast Asia, we will see how COVID‐19 re‐spread affects the market, but although the market has
softened these days, we expect it to recover in line with the recovery of the automobile industry.

The table of raw materials prices etc. used as assumptions for the forecast is shown here.
The prices of iron ore have been hovering around USD100 after it rose significantly in April. The price of coking
coal has risen sharply since September and is now around USD400.

14This page shows assumptions of our business forecast.
There is no change in our previous forecast for crude steel production of 26.5 million tons in FY2021.
As the production volume decreased by a little less than 300,000 tons in the first half of FY2021, we will
increase it by about 300,000 tons in the second half of FY2021. As you can see in the second line, we will bringforward the resuming of the No. 4 blast furnace in Kurashiki from late December to mid‐December in order
to increase production.
As for the spread, we expect a total improvement of JPY43 billion compared to the previous forecast. While
we assume that the steel market will continue to be high, our assumptions for raw material prices are thatiron ore prices have settled down to a certain level for the time being and will remain at the current level forthe time being.
As for coking coal, it is difficult to say for sure, but we believe that the current market is extremely overheated,
and it will take a certain amount of time for it to settle down, so we expect the prices will remain high.
We also believe that metal and scrap prices will continue to be high.

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I would like to explain our efforts to improve selling prices, which I explained at the last briefing.
First of all, market prices for exports have remained high due to the rising cost of raw materials and tightsupply and demand.
In Japan, we have been steadily promoting sales price improvement through various initiatives.
I will not go into detail about the initiatives as I have already explained them at the previous briefing, but firstof all, we are working on the early reflection of raw material costs mainly by shortening the reference period.
In addition, we are continuing to negotiate to reflect the rising cost of metals and scrap in our prices.
Overseas market prices continue to be very high, so I believe that we have made considerable progress in
improving prices to exceed the cost rise of raw materials.
As for the review of the extra pricing, we have already been modifying the extra pricing in several contracts,
as described here. We will also continue to promote the overhaul.

16This page shows the outlook for steel's performance in FY2021.
Segment profit is expected to be JPY280 billion, which is the same as the previous forecast.
Crude steel production volume, as I mentioned earlier, is expected to be 26.5 million tons for the full year.

17Breakdown of changes in profit and loss.
The segment profit forecast remains unchanged. As for the breakdown, the impact of spread is expected to
be positive JPY43 billion.
Although raw material prices will rise, we expect the spread to improve due to the improvement in sales prices,
especially in Japan.
On the other hand, there will be a negative impact of JPY47 billion due to other factors, of which the impactof rising prices of metals and scrap. accounts for about JPY30 billion. As a result of these negative factors, total
forecast figure remains unchanged.

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Let’s look at the comparison with the previous year.
The cost reduction of JPY30 billion and the volume increase of JPY70 billion are the same as the previous
announcement, but the sales price and raw materials will have an impact of JPY86 billion, which is an increase
compared to the previous announcement.
The inventory valuation difference is JPY195 billion, which is a very large amount. As for the others, earnings
improvement at group companies in Japan and overseas will be about JPY90 billion in total. On the other hand,
the increase in prices of metals, scrap, and other commodities is expected to be a little less than JPY120 billion,
so in total, other items will have a negative impact.

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This is a comparison of the first half and the second half of FY2021. Segment profit in the second half is
expected to be worse by JPY37 billion.
As for the breakdown, cost reduction will have a JPY15 billion positive impact, and the impact of volume
increase due to increased production of crude steel will be JPY26 billion.
Furthermore, the spread will have a positive impact of JPY36 billion. First, we expect to see an improvement
in selling prices in Japan. Raw material prices will also rise, but iron ore prices will fall, while coking coal prices
will rise sharply. In total, we expect an increase of JPY36 billion.
Inventory valuation difference will result in a negative JPY19 billion. Then the other negative factors will havea very significant impact. As for the breakdown, earnings of overseas Group companies were very good in thefirst half. In the second half of the fiscal year, we expect a slight decrease in profit compared to the first half,
which will have a negative impact of about JPY15 billion.
In addition, price hikes in metals and scrap will be responsible for a negative impact of less than JPY40 billion,
and depreciation and amortization and other expenses will be added to it, resulting in the large negative figure.
The above is JFE Steel. Let’s move on to JFE Engineering.

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The situation of JFE Engineering is largely unchanged from the previous announcement.
The environment and energy sector and the infrastructure sector are both firm.
As a result, the full‐year forecast is completely unchanged from the previous forecast, with orders of JPY550
billion, revenue of JPY520 billion, and segment profit of JPY25 billion.
In the first half of the fiscal year, orders received were slightly lower than the previous forecast, but this wasdue to a delay in the timing of contracts. This will have no impact on the full‐year result.

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Next, I would like to talk about JFE Shoji.
As I mentioned at the beginning of this report, JFE Shoji is the only segment that has revised upward theforecast, with annual segment profit expected to be JPY45 billion.
In the first half of the year as well, earnings expanded very much due to the recovery in volume and the upturnin market conditions.
In the second half of the year, we expect a slight slowdown compared to the first half.
With regard to the comparison with the previous forecast, we have made an upward revision for the second
half of the fiscal year based on the expectation that segment profit will continue to increase, although we
expected a slight slowdown in the second half for Group companies, mainly in North America, in the previous
forecast.
These are the business results, and I will now talk about some of the topics.

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The first point is about environmental initiatives, and this page is about organizational restructuring.
The left side shows the reorganization of JFE Steel's carbon neutral promotion system. We have set up the
Carbon Neutral Promotion Committee consisting of members of the Management Committee and the projectteam.
As you can see at the bottom of this page, the project team is a system that allows each department tocooperate with each other, and in particular, in July and October, we launched 3 new specialized organizations
at the head office. The organizational structure is such that this project team and the members of theManagement Committee discuss important issues at the Promotion Committee.
Next, I would like to talk about the reorganization of JFE Engineering's offshore wind business. From
manufacturing foundation structure of offshore wind power to O&M, this organization will be responsible forthe entire process. As you can see, we have set up 4 units under the project team to work on this project.

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Next, I would like to introduce 2 individual initiatives, 1 for JFE Steel and 1 for JFE Engineering.
First, I would like to introduce JFE Steel's unique and unprecedented initiative called the BETTER RECYCLE
Shonan Project.
We made a prototype of the Better Recycle Cup, a beverage container made of steel plates for cans, to solve
the problem of disposable plastic containers. We are now conducting test marketing in the Shonan area andhope to develop new products in 3 to 5 years. This means that we are working to address environmental
issues.
Also, I would like to talk about the latest release on JFE Engineering's decision to commercialize a woody
biomass power plant. We will build and operate a power plant exclusively burning woody biomass in Tahara
City, Aichi Prefecture. It is 1 of the largest power generation plants in Japan, with an output of 112,000
kilowatts. We are aiming to operate the business by making the most of the Group's collective strength, withthe participation of not only engineering companies but also Group companies including JFE Shoji.
This project is expected to contribute to the reduction of CO2 emissions by 340,000 tons per year.

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Next is the DX initiative.
The system I will introduce is called J‐dscom, which is a system for detecting abnormalities in steel facilities
and is being deployed in all hot‐rolled mills in all of our works.
Through data analysis, the system detects signs of abnormality and deters problems. In addition, the system
has been introduced as a common system for all hot rolling mills in each work, as it can handle unexpected
problems that have never been experienced in the past by utilizing the analyzed data. In addition, we arethinking of expanding to other manufacturing processes.
Lastly, regarding the DX briefing held in August, the presentation material, audio video, and summary ofquestions have been posted on our website, so please take a look. (The presentation materials and video are
in Japanese only.)25

These topics have been recently announced. 1 is the integration of JFE Mineral, Mizushima Ferroalloy, and JFE
Material, which are 3 companies under JFE Steel.
These companies are Group companies that are responsible for mineral resources, ferroalloys, steelmaking‐related businesses, and advanced materials businesses.
Considering the business environment, such as the contraction of the domestic steel business, the response
to climate change, the electrification of automobiles, and the future expansion of the advanced materials field,
the decision to integrate was made based on the need to expand the scale of the Company and strengthen
the management base through integration.
Next is the announcement made yesterday, November 4, regarding the dissolution of NKKTubes K.K., or NKKT.
NKKT, a joint venture between Siderca, a wholly owned subsidiary of Tenaris S.A., and JFE Steel, has decided
to stop production around June next year and dissolve in December.
As the business environment for oil well pipe business continues to be extremely difficult, NKKT and bothshareholders have examined various aspects of the business and have determined that it will be difficult tocontinue the business.
Incidentally, we have reached a general agreement that JFE Steel will continue to supply 13Cr seamless tube
to Tenaris after the suspension of operations and that the relationship between the 2 companies will bemaintained.

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Lastly, as topics, we published our Integrated Report and CSR Report.
We also resolved to select the new Prime Market of the Tokyo Stock Exchange. At today's Board of Directors'
meeting, we selected the Prime Market with regard to the transition to the new market classification of theTokyo Stock Exchange.
That's all from me.
[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 information in regard toits use. The forecasts presented are prepared on the basis of information available at the time of the briefing session
and include uncertain factors. It is strongly recommended NOT to rely only on the forecasts in this document when
making investment decisions. In no respect will JFE Holdings, Inc. incur any liability for any damage arising out of,resulting from, or in any way connected to the use of the information contained herein.

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