PROGRESS OF JGP2017 (JSW GROUP GROWTH PLAN FY2015-2017)
CORPORATE VISION“Advancing toward Top Global & Niche Corporate Group”
Aiming to achieve top share at key points in customer value chains

BASIC POLICIESPolicy 1
Increase profitability of existing businesses

NUMERICAL TARGETS

Renewed challenge:
Net sales of ¥250 billion in FY 2020

• Pursue product & service differentiation• Strengthen total-cost competitiveness

More than(Billions of yen)More thanNet Sales¥220.0¥250.0Operating income

Operating income

Operating income

ROAROA• Develop service & solution businesses• Reinforce initiatives in growth markets

Policy 2¥194.6

Foster new products & businesses and makethem competitive as soon as possible• Promote businesses based oncore management resources• Optimize timeframe and systems forpromoting new products & businesses¥7.5

Policy 3
Reinforce Group management andpromote alliances

FY2014≧ ¥13.0≧ ¥20.0

≧ 3%

≧ 4%

ROE

ROE

≧ 8%

≧ 10%

FY2017

FY2020* The ROE target has been revised upwards.

Strict management control based on Action Plan (implement PDCA)

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PROGRESS OF JGP2017

BUSINESS STRATEGIES

Steel and Energy Products Segment

Defensive management

Achieve steady growth and prepare for renewed growth after JGP2017(Billions of yen)

FY2015

Reduce invested capital

FY2016(Actual)• Rationalize facilities• Reallocate personnel• Promote cost-reduction measures(Plan)Net Sales

Net Sales

Operating Income

Operating Income

Operating Income¥0.6• Strengthen “profitable products”• Secure volume of “operable products”• Expand new products• Review unprofitable businesses

FY2017

Net Sales¥74.8

Review business domains(Plan)

¥58.0
−¥2.0

We expect a segment operating loss in FY
2016, resulting from an expected year-onyear decline in segment sales of around¥20 billion.

≧ ¥60.0

FY2020Regrowth≧ ¥0

We will return to profitability in the final
year of the plan through ongoing efforts
to strengthen orders to boost sales while
cutting costs.

Industrial Machinery Products Segment

Offensive management

Identify growth opportunities and accelerate business expansion
Pursue strategic investments(Billions of yen)

FY2015FY2016FY2017• Reinforce production capacity at
Hiroshima and Yokohama Plants• Reinforce personnel• Promote strategic alliances

Net Sales

Net Sales¥160.0≧ ¥158.0

Expand business domains

Operating Income

Operating Income

Operating Income• Strengthen service businesses• Acquired South Korea’s SM PLATEK• Acquired “simultaneous biaxial
stretching machine business” for filmand sheet manufacturing equipment• Expand sales of J-ADS series• Expand thin-film coating business(Actual)¥144.3¥12.3(Plan)¥15.0

Backed by strong orders, we expect segment sales and operating income to both
meet the final-year targets in FY 2016, one
year ahead of schedule.

(Plan)FY2020Net Sales≧ ¥14.0

Continuousgrowth

We will revise our targets for the plan’sfinal year in light of the segment’s FY
2016 results.

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JGP2017: BASIC STRATEGIESFOSTER NEW PRODUCTS AND BUSINESSES AND
MAKE THEM COMPETITIVE AS SOON AS POSSIBLE

Groupwide effort to achieve sales of ¥30 billion in
new businesses by FY 2020
Overview of Groupwide commercialization project activities

Groupwide commercialization project activities

R&D themes
JSW Group synergies

Prioritized projects

Alliances(short- to medium-termcommercialization)

Intellectual property strategy

Targeted fields
Next-generationenergyElectronics,
information,and communications

Automotive andaerospace

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Prioritized projects

Strategic projects(medium- to long-termcommercialization)

FY 2016 initiatives

Hydrogen business

Develop highly reliable steel pressure vessels and hydrogencompressors for use at hydrogen stations
Develop fuel cell systems

Offshore-related
equipment business

Develop offshore structure components and welding
technologies for deep-sea use

Organic EL-related business

Develop sealing film forming equipment for flexible panels
Develop excimer laser annealing systems for high definition

High-value-added film business

Develop film processing equipment for high-endurance,heat-resistant lithium ion batteries

Semiconductor business

Develop manufacturing equipment for gallium nitride
crystals and crystal-related technologies

Carbon fiber business

Develop manufacturing equipment for carbon fiber
composite parts

Aircraft components businessEnter the aircraft components businessPROGRESS OF JGP2017

JGP2017: BASIC STRATEGIESREINFORCE GROUP MANAGEMENT AND
PROMOTE ALLIANCES

Seek maximum synergistic benefits

Increase profitability ofexisting businesses

Foster new products andbusinesses andmake them competitive
as soon as possible

Continue and strengthen further

Expand and evolve further

FY 2015 initiatives

FY 2015 initiatives

Reinforce Group management

Promote alliancesRestructured the Hiroshima Plant(to be completed in July 2016)

Film and sheet equipment

Pressed ahead with the Muroran Restructuring
Project (improve production efficiency, etc.)
Transformed Meiki Co., Ltd. into a wholly-owned
subsidiary
Formulated a corporate governance policy

Acquired the simultaneous biaxial stretchingmachine business

Compound twin-screw extruders
Acquired South Korea’s SM PLATEK

Molding machines
Jointly developed small machinery with
Toyo Machinery & Metal Co., Ltd.

Large cast and forged steel products
Formed alliance with India’s LTSSHF
Formed joint venture with Brazil’s Gerdau S.A.

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