JGP2014 – the JSW Group’s New MediumTerm Management Plan
We have drawn up a new medium-term management plan, under the name of JGP2014, covering the three-year period
from April 2012 to March 2015. Our twin goals under this plan are to become “the No.1 global monozukuri (manufacturing) company” and “a corporate group with a stable earnings structure and strong financial position.”

Overview of JGP2014 Medium-Term Management Plan
We aim to regain the growth path by building the Group’s products into the leading presence in the globalmarket, and to marshal the total strength of all JSW Group companies – including new business alliances – toexpand our business operations into new growth markets and business fields.

1. Overview
JGP2014: JSW Group Growth Plan FY2012-2014
Our goal: • To become the No.1 global monozukuri (manufacturing) corporate group— To provide the world’s best products and services and become a group fully capable of competing in the global
marketplace• A corporate group with a stable earnings structure and strong financial position

2. Numerical targets
SalesFY2012¥225 billion

Operating Income
FY2014FY2012FY2014¥250 billion¥15.2 billion6.8%¥27 billion
10% or higher(Operating income margin)

ROE

Capital Ratio

FY2012FY2014FY2012FY2014

7%

10% or higher

43%

48% or higher• Plan recovery in steel products segment and sustained growth in industrial machinery segment• Strengthen our business base following the end of the current medium-term plan

Basic Management Policies
1. Grow our products into global market leaders• Steps to strengthen the competitiveness of our products tobe undertaken as Groupwide project (under name of Global
No.1 Project), leveraging comprehensive strength of entire

Group and involving prioritized allocation of management
resources

2. Strengthen expansion of business operations into growth markets and growth fields• Growth markets = Asia, emerging nations• Growth fields = energy/environment, electronics/information &telecommunications, motor vehicles: 씮expand technologicalfields, scope of business, and customer base through fusion
with materials technology and mechatronics

Scale of business in growth markets (orders)
FY2011FY2014(current medium-term plan)

Emerging nations¥40 billion¥60 billion(of which, China)(¥20 billion)(¥35 billion)

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JGP2014 – the JSW Group’s New Medium-Term Management Plan
3. Creating global network of monozukuri alliances• To cope with changes in the business environment,
particularly in our main markets and in the competitivestructure, we must abandon the go-it-alone approach andform alliances toward specific targets, and must also speed
up the development of our operations• Selection as appropriate from various methods, including
M&As, capital tie-ups, business alliances, licensing agreements, and so on

4. Strengthen business base
• Reinforce control over affiliated companies and reorganize
Group structure to strengthen the Group’s management• Invest in the training of human resources and globalization• Implement strategic investments
Capital investment¥6 billion/year

R&D expenditure¥5 billion/year

Other strategic investments¥10 billion+␣/3 years• Strengthen financial position through more efficient employment of working capital and strict management of strategic
investments
aiming at numerical targets of ROE 10% or higher andcapital ratio of 48% or higher by FY2014

Projected Development of Overall Business Performance andIndicators During JGP2014 Plan Period
Regaining the growth path by realizing our goals under JGP2014
Laying the groundwork for attainment of ¥300 billion annual sales after end of JGP2014
Steel and Energy
Products Business

Expand lineup of energy-related products and construct production and marketing system to meetneeds of emerging nations

Industrial Machinery
Products Business

Expand earnings by strengthening technology to create superior products and by launching newproducts, to expand operations in growth markets and growth fields

Examine and implement a variety of alliances to enhance the Group’s manufacturing capabilities in pursuit of these objectives

Sales and Operating Income
Steel and Energy Products BusinessIndustrial Machinery Products Business
Real Estate and Other Businesses

Operating income

Medium-Term Management Plan (JGP2014)(billions of yen)

250

240.0
221.3

225.0
2.4

2.0

250.0
27.0

(billions of yen)

30

2.0

2.0

200

23.9
150

113.9

20.0
123.0

128.0

138.0

20

15.2
100
1050

105.0

100.0

110.0

110.0

00

FY2011

6FY2012FY2013

FY2014(Est.)(targets under JGP2014)(targets under JGP2014)

After conclusion ofJGP2014

Return on Equity (ROE)
Net income

Capital Ratio

Shareholders’ equity (net worth)ROE(billions of yen)

ROE of200

Shareholders’ equity (net worth)(%)(billions of yen)

15400

Net worth

Capital ratio

Capital ratio of48% or more

(%)

5050

10% or more
154.0

150

50100

(Est.)

142.0

134.0

5154.0

43

16.0

12.0

0

FY2012

45200

79.0

307.0

46

90

307.0

1011100

308.0

300

142.0

134.0

FY2013

0FY201440FY2012(targets under JGP2014) (targets under JGP2014)(Est.)FY2013

FY2014(targets under JGP2014) (targets under JGP2014)

Basic Strategies, Sales, and Operating Income by Segment
Steel and Energy Products BusinessSales(billions of yen)

Operating income(billions of yen)

Medium-Term Management Plan (JGP2014)

150

100

105.0

110.030110.0

100.020

11.5

11.050107.0
3.20

Basic Strategies• Maintain scale of sale of nuclear power products throughmarketing initiatives in countries newly developing their
nuclear power sectors (¥45-50 bn)• Expand sales of clad steel plates & pipes and windturbine systems by taking advantage of demand trends• Reinforce price-competitiveness through construction of
global alliances• Raise capacity utilization rate to make full use of stateof-the-art production equipment• Develop products in new fields, as well as newbusinesses

0FY2011

FY2012FY2013

FY2014(Est.)(targets underJGP2014)(targets underJGP2014)

Sales to Recover from a Bottom in FY2012

Industrial Machinery Products Business
Sales(billions of yen)

Operating income(billions of yen)

Medium-Term Management Plan (JGP2014)

150

30

138.0
113.9

123.0

128.0

100

20

16.2
11.5

12.6

13.2

50

100

Basic Strategies• Raise the Group’s global profile through productdifferentiation• Improve and reinforce organizational structure to expand
service operations• Improve processing technology to expand sales of plant
equipment• Strengthen price-competitiveness to win orders inemerging markets• Develop new products in new business fields throughintegration of platform technologies

0FY2011

FY2012FY2013

FY2014(Est.)(targets underJGP2014)(targets underJGP2014)

Maintain Growth beyond FY2012

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