FY

2018 / JGP2020

Business Results for the Fiscal Year Ended March 31,2019

Medium-Term Management Plan “JGP2020”

May 18,2019
The Japan Steel Works, LTD.
Naotaka Miyauchi, Representative Director & President©2019 The Japan Steel Works, LTD. All Rights Reserved.

【Cautionary Note】

The performance forecasts and other forward-looking statements included in this report are based on the information that wasavailable to The Japan Steel Works, LTD. (the “Company”) and certain assumptions deemed to be reasonable at the time this report
was prepared, and the actual results may differ significantly from these forecasts due to a variety of reasons.
Unless otherwise noted, values of “previous forecast” means those released on November 14, 2018.

©2019 The Japan Steel Works, LTD. All Rights Reserved.

1

INDEXPART Ⅰ

Financial Results for Fiscal Year Ended March 31, 2019
04
05
06
07
08
09

Consolidated Actual Results for FY2018
Increase/Decrease in Operating Income
Orders Received, Net Sales and Operating Income by Segment
Industrial Machinery Products Business
Steel and Energy Products Business
Capital Investment/Depreciation, Cash Flows, Financial Position
and R&D costs

PART Ⅱ

Projection for the Fiscal Year Ending March 31, 2020
11
12
13
14
15
16

Projection for FY2019
Forecast for Increase/Decrease in Operating Income
Projected Orders received, Net sales and Operating income
by Segment
Forecast for Industrial Machinery Products
Forecast for Steel and Energy Products Business
Trends of Order Backlog

PART Ⅲ

Progress of Medium-Term Management Plan “JGP2020”

27
28
29
34

Background for the Growth until FY2018
Market Forecast for FY2019
Mass Customization Strategy
Efforts in Automobile Fields
Absorption Merger of Meiki, Co.

PART Ⅳ

Progress of the Priority Measures in “JGP2020”
36
37
38
39
40
41
42
43
44

3 Basic Policies (Priority Issues) in “JGP2020”
I. Optimization of Management Resources and Strengthening of Alliances,
Steel and Energy Products Business
II. Strengthening After-Sales Services (Stock-Based Business)
Plastic Production and Processing Machinery
Molding Machines
III. Acceleration in Exploration and Development of New Businesses
Foundation of Joint Venture with JX Nippon Mining & Metals
Hydrogen Business
Value Creation Model of JSW, “Yompo-Yoshi (Benefits in all 4 stakeholders)”

Reference (47～50) :Trends of Net Sales, Operating Income and Profit
Trends of Assets Situation and Cash Flows
Corporate Code of Behavior of JSW (revised on April 1,2018)18

Medium-Term Management Plan “JGP2020” and Corporate Vision for
FY203019 Revision of Numerical Targets in “JGP2020”
20 Market Conditions for Separator Film Manufacturing Equipment
21 Film and Sheet Equipment
22 The Top of Overall Plastic Machinery Manufacturers in the World
23 Pelletizers
24 Twin Screw Extruders
25 Market Conditions for FPD (Flat Panel Display) Equipment
26 Injection Molding Machines:©2019 The Japan Steel Works, LTD. All Rights Reserved.

2

Financial Results for the Fiscal Year
Ended March 31, 2019©2019The Japan Steel Works, LTD. All Rights Reserved.

3

Consolidated Actual Results for FY2018
Net Sales and operating income increased from FY2017, while orders received decreased.
（Unit：Billions of yen）

FY2018FY2017

Previous forecast
（B）

（A）

Compared to theprevious year

Actualresults（C）（C）-（A）

Compared to theprevious forecast（C）-（B）

△19.5

△13.9

24.2
11.0%

3.7
1.3％

0.2
0.4％

25.0

27.9

5.8

2.9

10.7

20.0

199

9.2

Profit(Loss)per share(yen)145.77272.15271.69125.92

△0.1

△0.46

Dividends per
share(yen)

37.5

50.0

55.0

17.5

5.0

Orders received

235.6

230.0

216.1

Net sales

211.7

227.0

220.1

Operating income(ratio)

20.5
9.7%

24.0
10.6%

Ordinary income

22.1

Profit(Loss)©2019 The Japan Steel Works, LTD. All Rights Reserved.

8.4

△6.9

4

Increase/Decrease in Operating Income for FY2018
Operating income increased by 18%, due to the increase in production and sales.
(Unit: Billions of yen)
（単位：億円）

△0.4

+3.1
20.5

（△0.5）（+3.6）

Variable costs

Increase/decre
ase inproduction,
sales and price

+1.7

+0.3

△0.4

△0.6

24.2

（△0.8）（△0.7）
Fixed costs（+0.２）（+1.7）

Foreignexchange
gain/loss

Disposal of
inventories

Unclassifiable
costs(steel and energy
products business)

Average exchange rate in sales at USD
FY2017：JPY110/USD
FY2018：JPY111/USD※（ ）・・・Compared to the previous forecast

FY2017©2019 The Japan Steel Works, LTD. All Rights Reserved.

FY20185

Orders Received, Net Sales and Operating Income by Segment
Net Sales increased and orders received decreased from FY2017 in both segments.
Industrial Machinery Products
Business（Unit：Billions of yen）

FY2018FY2017
Previous
forecast（B）（A）

Actual results（C）

Orders received

186.2

180.0

175.7

Net sales

169.0

177.0

173.6

Operatingincome(ratio)

23.7
14.0%

24.2
13.7%

23.5
13.6%

Compared to theprevious year（C）-（A）

Compared to theprevious forecast（C）-（B）

△10.5
4.6

△4.3

△0.2
△0.4％

△0.7
△0.1％

△3.4

Steel and Energy Products Business
FY2018FY2017
Previous
forecast（B）（A）

Actual results（C）

Compared to theprevious forecast（C）-（B）

41.2

△8.9
4.9

△10.9

2.6
6.5%

3.5
9.3％

0.4
1.6％

Orders received

43.0

45.0

34.1

Net sales

36.3

45.0

Operatingincome(ratio)

△0.9
△2.8%

2.2
4.9%

©2019 The Japan Steel Works, LTD. All Rights Reserved.

Compared to theprevious year（C）-（A）△3.8

6

Industrial Machinery Products Business for FY2018
Orders received declined, due to the market downturns of film and sheet manufacturing
equipment, molding machines and FPD equipment.
（Unit：Billions of yen）
Orders Received

Net sales and operating income
FY2018FY2017（A）

Previous
forecast（B）

Actualresults（C）

Comparedto thepreviousyear(C) - (A)Comparedto theprevious
forecast(C) - (B)

△10.5

63.8

63.0

59.3

3.7

72.4

71.0

70.6

FY2018FY2017（D）

Previous
forecast（E）

Actualresults（F）

Plastic production
and processing
machinery

50.2

63.0

52.5

2.3

Molding machines(consolidated)

64.5

69.0

72.7

8.2

FPD equipment(consolidated)

15.1

15.0

16.4

1.3

1.4

14.2

14.0

6.0

Other products

28.4

19.0

20.4

1.4

23.6

21.0

28.1

Consolidated
subsidiaries, etc.

10.7

11.0

11.6

△8

0.9

0.6

12.2

11.0

11.7

Total

169.0

177.0

173.6

4.6

△3.4

186.2

180.0

175.7

Operating income

23.7

24.2

23.5

△0.2

△0.7

©2019 The Japan Steel Works, LTD. All Rights Reserved.

Comparedto thepreviousyear(F) - (D)Comparedto theprevious
forecast(F) - (E)

△4.5

△3.7

△8.2

△8.0

△1.8

4.5

△0.5

△10.5

△0.4

7.1
0.7

△4.3

7

Steel and Energy Products Business for FY2018
Net sales increased while orders received decreased from FY2017.
（Unit：Billions of yen）

Net sales and operating income
FY2018FY2017（A）

Previous
forecast（B）

Orders Received

Comparedto theprevious
Actual results
year
（C）

Comparedto theprevious
forecast(C) - (A)(C) - (B)

△1.5

Electric andnuclear power

17.2

14.0

12.5

Clad steel plates
and pipes

△4.7

7.0

15.0

13.0

6.0

Other products

6.2

10.0

9.5

3.3

Consolidated
subsidiaries, etc.

5.9

6.0

6.2

Total

36.3

45.0

Operating income

△0.9

2.2

©2019 The Japan Steel Works, LTD. All Rights Reserved.

FY2018FY2017（D）

Previous
forecast（E）

Comparedto theActual results previous year

（F）(F) - (E)

△6.3

△8.3

8.4

△1.9

△0.6

6.0

6.4

0.6

0.4

45.0

34.1

△8.9

△10.9

13.0

15.0

6.7

13.9

15.0

12.6

△0.5

10.3

9.0

0.3

0.2

5.8

41.2

4.9

△3.8

43.0

2.6

3.5

0.4

△2.0

(F) - (D)Comparedto theprevious
forecast

△1.3

△2.4

8

Capital Investment/Depreciation, Cash Flows, Financial Position
and R&D costs
Financial position

Capital investment and depreciation

200
20

Capital
設備投資額
investment

Net assets
純資産

Depreciation
減価償却費

11.0

10
100

1,200
120

10.7

7.9

7.8

4.4

4.0

0.48

0.70
0.60

0.44

0.50

0.40

51.4

51.0

600
60

D/E ratio
D/Eレシオ

1282
129.8

118.6

800
80

6.4

550

bearing debt
純有利子負債Interest-

107.5

1,000
100

9.9

9.5

Net interest-

有利子負債
bearing debt

1,400
140

14.0

150
15

（Unit：Billions of yen）

0.40

51.5

0.30

400
40

0.20

200
20

0.10

0

00
FY201516.3期

15.3期
FY2014FY201718.3期

FY201617.3期

FY2018
19.3期

△
200
△20
△△40
400

FY201617.3期末Steel and Energy

0

△0.2

△
100
△10
△
200
△20

△5.0
△13.5
FY201617.3期

FY201718.3期©2019 The Japan Steel Works, LTD. All Rights Reserved.

5.050

Business

FY201819.3期末R&D costs
Industrial Machinery
産業機械

新事業
Businesses△ 0.10New

Business

4.2

4.2

4.2

4.2

4.5

15.3期
FY201416.3期
FY2015FY201617.3期

FY201718.3期

FY2018
19.3期

3.030

1.1
△1.5

Products
素形材

FY201718.3期末

4.040

21.7

12.0

10100
0

フリーキャッシュフロー
Free cash flow

26.7

30300
20200

投資キャッシュフロー
Investing cash flow

△22.8

△27.6

Cash flows
営業キャッシュフロー
Operating cash flow

0.00

△8.7

2.020
△1.3

FY2018
19.3期

1.010
0.0 0

9

Projection for the Fiscal YearEnding March 31, 2020©2019 The Japan Steel Works, LTD. All Rights Reserved.

10

Projection for FY2019
Orders received and net sales are expected to increase from FY2018, while operating income
is to decrease.
（Unit：Billions of yen）

FY2019FY2018First fiscal half（A）

Second fiscal halfCompared to theprevious year（B）-（A）

Full year（B）

Orders received

216.1

115.0

120.0

235.0

18.9

Net sales

220.1

112.5

112.5

225.0

4.9

Operating income(ratio)

24.2
11.0%

9.5
8.4%

9.5
8.4%

19.0
8.4%

△5.2

Ordinary income

27.9

10.5

9.5

20.0

Profit(Loss)

19.9

7.5

6.5

14.0

△7.9

Profit(Loss) per
share(yen)271.69102.0588.45

190.50

Dividends per
share(yen)△81.19

55.0

27.5

27.5

55.0

0

©2019 The Japan Steel Works, LTD. All Rights Reserved.

△5.9

11

Forecast for Increase/Decrease in Operating Income
Operating income are expected to decrease by 21%, due to the lower production level andincrease in fixed costs.
24.2

△3.5
Increase/decre
ase inproduction,
sales and price（Unit：Billions of yen）

+0.7
Variable costs△1.6

Fixed costs△0.2

Foreignexchange
loss/gain

△0.6

19.0

Unclassifiable
costs

Average exchange rate in sales at USD
FY2018：JPY111/USD
FY2019：JPY110/USD

FY2018©2019 The Japan Steel Works, LTD. All Rights Reserved.

FY2019Forecast

12

Projected Orders Received, Net Sales and Operating Income by Segment
Orders received are expected to increase from FY2018 in both segments.
（Unit：Billions of yen）

Industrial Machinery Products Business
FY2018FY2019Forecast（ B）（A）

Compared to theprevious year（B）-（A）

Orders received

175.7

190.0

14.3

Net sales

173.6
23.5
13.6%

180.0
20.0
11.1%

6.4
△3.5

Operating income(ratio)Steel and Energy Products
Business
FY2018FY2019Forecast（ B）（A）

Compared to theprevious year（B）-（A）

Orders received

34.1

40.0

5.9

Net sales

41.2
2.6
6.3%

40.0
2.0
5.0%

△1.2

Operating income(ratio)©2019 The Japan Steel Works, LTD. All Rights Reserved.

△0.6

13

Forecast for Industrial Machinery Products for FY2019
Orders received and net sales are expected to increase from FY2018, while Operating income
is to decrease.
（Unit：Billions of yen）
Net sales and operating income
FY2018（A）

FY2019Forecast（B）

Orders Received

Compared to theprevious year（B）-（A）

FY2018FY2019Forecast（D）（C）

Compared to theprevious year（D）-（C）

Plastic production
and processing
machinery

52.5

62.0

9.5

59.3

67.0

7.7

Molding machines(consolidated)

72.7

65.0

70.6

65.0

FPD equipment(consolidated)

16.4

15.0

△7.7

6.0

15.0

△5.6

Other Products

20.4

24.0

3.6

28.1

28.0

Consolidated
subsidiaries, etc.

11.6

14.0

2.4

11.7

15.0

Total

173.6

180.0

6.4

175.7

190.0

Operating income

23.5

20.0

△3.5

©2019 The Japan Steel Works, LTD. All Rights Reserved.

△1.4

9.0

△0.1
3.3

14.3

14

Forecast for Steel and Energy Products Business for FY2019
Orders received are expected to increase from FY2018, while net sales and operating income
are to decrease.

（Unit：Billions of yen）

Orders Received

Net sales and operating income
FY2018FY2019Forecast（B）（A）

Compared to theprevious year（B）-（A）

Electric andnuclear power

12.5

12.0

Clad steel plates
and pipes

13.0

16.0

Other products

9.5

5.0

Consolidated
subsidiaries, etc.

6.2

7.0

Total

41.2

Operating income

2.6©2019 The Japan Steel Works, LTD. All Rights Reserved.

△0.5

FY2018FY2019Forecast（D）（C）

Compared to theprevious year（D）-（C）

6.7

9.5

2.8

3.0

12.6

15.0

2.4

△4.5

8.4

8.5

0.1

0.8

6.4

7.0

0.6

40.0

△1.2

34.1

40.0

5.9

2.0

△0.6
15

Trends of Order Backlog（Unit: （単位：億円）
Billions of yen）

Trends of order backlog by segments

3,000

300.0

Steel and Energy
素形材・エネルギー
Products BusinessIndustrial
産業機械
Machinery

2,500
250.0

199.2
2,000
200.0

Other Businesses
その他

Business

0.6

164.4

187.8
1

201.8
1.8

0.6

150.0
1,500

129.1
100.0
1,000

183.8
2

143.0

161.8

37.8

43.7

38.1

36.6

FY201617.3期

FY201718.3期

FY2018end of Sep.
19.3期9末FY2018
19.3期

125.9

145.2

500

50.0

69.5
0

FY201516.3期©2019 The Japan Steel Works, LTD. All Rights Reserved.

16

Progress of Medium-Term Management Plan
“JGP2020”©2019 The Japan Steel Works, LTD. All Rights Reserved.

17

Medium-Term Management Plan “JGP2020” and Corporate Vision for
FY2030Developing Foundations for Growth
ＪＧＰ２０２０

FY2030To establish the ground to realize our growthin the “Next 10 Years”
JGP2020

Industrial Machinery Products Business
Steel and Energy Products Business

Apr. 2019
Absorption merger of
Nikko Information
System Co.

Apr. 2019
Acquisition of
GM Engineering Co.

2020
Absorption merger
with Meiki Co.
(Plan)

New business,
M&A～JGP2017
2018～2020
Investment for greater production capacity
at Hiroshima plant

Expansion of theexisting businessRestructuring of the
production system“Aggressive Management”
Sowing and nurturing of seeds for
expansion of our business fields
Securing profitability in the current
scale
Exploration of the new opportunities
Apr. 2019
Cooperation with
Tsukishima Kikai Co.

2019
Joint Venture withJX Nippon Mining &Metals (Plan)

Expansion of the businessscalesFosteringnew businessContinuous profit making
from the existing business2019
Establishment of new company
and integration of subsidiaries(Plan)

2018～2021 Investment for clad steel business©2019 The Japan Steel Works, LTD. All Rights Reserved.

18

Revision of Numerical Targets in “JGP2020”
Changes in market conditions for industrial machinery products is affecting the numerictargets. However, our basic strategies remain effective.
Due to the drastic change in our business environment, we are revising the numerical targets in the mediumterm management plan ending FY2020 (net sales; over 260 billion yen, operating income; over 30 billion yen).
The new numerical targets will be disclosed as soon as possible, after deliberate consideration.
However, we are certain that our basic strategies are still effective. So we keep the measures for implementing it.

Industrial Machinery Products
Business

Market Conditions

Film and Sheet Manufacturing
Equipment

Market in china is inactive due to the excess of supply capability forfilms. On the other hand, markets in Japan and South Korea arebrisk.

Pelletizers

ProspectOrders are increasing in China and other Asian markets.

Twin Screw Extruders

Shift of materials for automobile parts toward plastics is serving as aspur.

FPD Equipment

Market downturn and cancelation of orders occurred the previous
year. Recovery is expected through investments for 5G and 8K TVs.

Molding Machines

Market is gradually going down, beginning from the second half of
FY2018. The future prospect is unclear.

©2019 The Japan Steel Works, LTD. All Rights Reserved.

19

Market Conditions for Separator Film Manufacturing Equipment
Market Conditions for Separator Film
Manufacturing Equipment
Market Forecast for Separator Film Manufacturing
Equipment

湿式セパレータフィルム装置 年度別市場予測

I. Japan and South Korea

3.0*Demand for high-end equipment (automobile
application use) is steady.

2.5
2.0

*We already have established the position as theNo.1 manufacturer.

1.5

II. China

1.0*Suppling capability for films is in excess due tothe large orders in FY2017.
→”Natural selection” among low-end film
manufacturers is beginning.

0.5
0.0
2016
2016年

2017年

2017

2018年

2018

Initial Forecast(2017)
当初予測（2017年）

2019年

2019

2020年

2020

Current situation
Forecast(2018)
現状予測（2018年）

The data are expressed as relative values,
with FY2016 being 1.

©2019 The Japan Steel Works, LTD. All Rights Reserved.

2021年

2021

(Forecast by JSW)

*Mood for investment is growing among highend separator manufacturers.
→Market for high-end films is shifting toward
demand excess from equivalence.
*Recovery is expected to begin around FY2020.

20

Film and Sheet Equipment
Portfolio for Film and Sheet Equipment
in JSW
For packaging

materials
包装材料
向け

For光学用・
opticalElectronic
電子材料
materials

向け

For separator(Industrial Use)

（工業用途）
セパレータ
向け

フィルム・
Film
and
Sheet
シート装置
Equipment

Efforts for Realization of ”JGP2020“◆We firmly maintain the largest share in the world of film
and sheet equipment for separator films.
〇Investment for higher production capability has finalized in
Hiroshima plant.(FY2018）〇High-performance equipment has launched that enables
production of wider films at a higher speed.
(order reception;FY2018, shipment;FY2019）〇New simultaneous biaxial stretching system has launched in
FY2018. At the same time, the new model is installed at our
test centers, which are expected to contribute for thedevelopment of new materials (super engineering plastics,
barrier film) by our customers.

JGP２０１７

JGP２０２０

JGP２０２３

For separator(Industrial Use)
(工業用途)セパレータ向け
For optical

Electronic
光学用・電子材料向け
materials

For packaging
包装材料向けmaterials©2019 The Japan Steel Works, LTD. All Rights Reserved.

Simultaneous Biaxial
Stretching System

Sequential Biaxial
Stretching System

21

The Top of Overall Plastic Machinery Manufacturers in the World
Twin Screw Extruders

Pelletizers

produce high-performance plastic pellets by mixing additives into
basic pellets.

produce basic raw materials for plastics (pellets).

Polymer Polymerization
Reactor(Petrochemical Plant)

High-performance
Pellets

Pellets
Features :We supply one of the largest pelletizers that produce
70 tons of pellets per hour.
Market Conditions :Investment for petrochemical plant is active in China
and other Asian economies.
Market Share :35-40% of the world.

Features :We supply the largest extruders of the world.
Differentiated technology that simplifies customer’s
manufacturing process is our advantage.
Market Conditions :Growing proportionally with the automobiles market.
Market Share :20% of the world.

Film and Sheet Equipment

Injection Molding Machines

produce various plastic films and sheets.

produce various plastic injection molded products.

Blow Molding Machines
produce various blow molded products.

Parts forautomobiles(air spoiler)
Features :Broad lineup from high-performance (opticalor industrial use) to general purpose.
Market Conditions :Demand in industrial use (separators) is
growing.
Market Share :35-40% of the world.
©2019 The Japan Steel Works, LTD. All Rights Reserved.

Fuel tank forautomobiles

Features :Broad lineup from large to small, that responds
to the various needs.
Market Conditions :Automotive sector is growing.

Features :Differentiated multilayer technology.

Market Share :35-40% of the world.

Market Share :30% of the world.

Market Conditions :Brisk in Asia and North America.

22

Pelletizers
Pelletizers◆Demand for polyolefin resin, the raw material forpellets, is expected to increase by 4% per year.
Trend of the number of inquiry for new equipment isalso steady.

Amount of demand
需要量（百万トン）(million
tons)

Market Conditions

Polyolefin
demandポリオレフィン需要量

250
200
150
100

PP

50

LDPE

HDPE 0

2016

2017
2018
2019
2020
2021
（source：Ministry of Economy, Trade and Industry）

Efforts for Realization of ”JGP2020“◆For the expansion of our 35-40% market share〇The only one manufacturer in the world with abroad lineup of pelletizers, who offers the bestpelletizers that suit customer’s use (types of plastics).

CMP (for PP)

CIM (for PE)

P series (for LDPE)〇Putting one of the largest pelletizers in the world on the market.
・ FY2018: MP387 (for PP), CIM510 (for PE), P700 (for LDPE)・ FY2019 and later : CMP443, CIM560, P800 are planned, following the actual demand.
〇Enhancement of non-price competitiveness through differentiated technologies.
・The world’s most capable cutting equipment (planned to be launched in FY2019）
・Full automatic start up pelletizer (planned to be launched in FY2020）※Polyolefin resin…polypropylene (PP) andpolyethylene (PE) are the typical examples.
©2019 The Japan Steel Works, LTD. All Rights Reserved.

23

Twin Screw Extruders
Twin Screw Extruders◆Application of plastic is expanding in various fields through developmentof technologies.
・Carbon fiber reinforced carbon composite materials, cellulose nanofibers, etc.
・Introduction of production technologies for human friendly andenvironmentally friendly plastics.VOC reduction, recyclable plastics)◆Polarization toward “high-performance purpose” and “general purpose,”through TEX (high-end machine) by JSW and TEK (standard machine) by SMP .

販売量 （百万トン）◆Shift of materials for automobile parts toward plastics is accelerating.

熱可塑性エラストマー
Thermoplastic
elastomers

Sales volume (million tons)

Market Conditions

Global Compounds Market
世界全体のコンパウンド市場

30

スーパーエンプラ
Super engineering plastics
汎用樹脂（PP,PE）

エンプラ
汎用樹脂（ABS,PS）

Engineering plastics

General purpose resins (PP and PE)

General purpose resins(ABS and PS)

20

10

0
2016

2017

2018

2019

2020

2021

(Source：Fuji Chimera Research Institute, Fuji Keizai)

Efforts for Realization of ”JGP2020“◆Reaching for the top share in the world〇Enrichment of the three technical centers; Hiroshimaplant as the central, United States (Detroit), and Germany(Dusseldorf).
〇Coverage of specialized fields (elastomer, high-performanceresin, dewatering and devolatilizing, reaction, etc.) andforefront fields (long-fiber composite material, etc.)〇AI and IoT technologies
・Preventive maintenance function (FY2016)
・Driving support technology (FY2018)©2019 The Japan Steel Works, LTD. All Rights Reserved.

TEX54αⅢ(High-end machine by JSW)

TEK58
(Global standard
machine by SMP)

※SMP … SM Platek, a subsidiary in South Korea.
24

Market Conditions for FPD (Flat Panel Display) Equipment■Laser Annealing System for Medium or Small Sized FPDs
・Growth of smart phone market is slowing down in the world.
１・Rise in investment for OLED display production equipment in China is delaying.
⇒Cancelation of orders occurred last year, due to the revision of ourcustomer’s investment plan.
⇒Harsh condition for attaining orders is expected this year, because of
the retard in recovery of the market.
２■New Laser Annealing System for High-end TVs
・8K TVs are slow to spread(expected to be later than FY2021).
⇒Keep our effort for early order reception
through continuous product development.

New Laser Annealing System©2019 The Japan Steel Works, LTD. All Rights Reserved.

25

Injection Molding Machines: Background for the Growth until FY2018
The number of shipment largely increased in this 10 years, after the fall affected by the financial crisis(“Lehman shock”). Automotive related fields are the drivers of the growth, which account for 30% of themarket.
Trends of the number of shipments for Japan and other Asian Shares in the number of shipments for Japan and Other
economies by fields of application
Asian economies by fields of application
家電
Consumerelectronics

Industrial/precision
工業・精密
machines

Automobiles
自動車

OA communication
ＯＡ通信機
equipment

Casings/sundries
容器類・雑貨Medical equipment/others
医療・その他

電子部品
Electronic parts

自動車
Automobiles
Casings/sundries
容器類・雑貨70

OA communication
OA通信機

電子部品
Electronic parts

医療・その他
MedicalConsumer
家電
electronics

equipment

equipment/others

工場・精密Industrial/precision
machines

4%

60

16%

50

16%

40
30

13%

20

11%

0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
(Fiscal Year)

15%

15%

Outer circle :FY2018Inner circle :FY2009

15%

10

4%

17%
11%

30%

22%

11%
(statistics by JSIM)*The data are expressed as relative values, with the sum of 4 areas for FY2009 being 100.
(statistics by The Japan Society Of Industrial Machinery Manufacturers (JSIM))©2019 The Japan Steel Works, LTD. All Rights Reserved.

26

Injection Molding Machines: Market Forecast for FY2019
 While the number of orders received in the market kept in a high level from FY2017-Q2 toFY2018-Q1, it is gradually going down.
 For now the prospect is unclear. However, we are certain about the potential demand andexpect the recovery in the second half of FY2019.
Trends of the number of orders received (statics by JSIM)
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
2016

2016

2016

2016

2017

2017

2017

2017

2018

2018

2018

2018

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

©2019 The Japan Steel Works, LTD. All Rights Reserved.

列12019 （Fiscal Year)
Average in Quarter
Forecasted by JSIM27

Injection Molding Machines: Mass Customization Strategy
Success in fulfilling various needs, mainly by medium-sized machines, contributed to the increase of
our market share.
Injection subunit“FLiP Series”
provides standard molding
machines with flexibility andease of use in composite
molding, enabling theaddition of values andaccessories to the mold.

Specialized servo system
for molding machines“J’s Drive System“
easily molds thin, difficult partsfor precision electricalcomponents, which are
increasing for self-driving carsand electric vehicles.

Multi-material molding
machine“J-ADS-2M Series”
is the latest model of multimaterial molding machine thatenables DSI molding, which
excels in energy saving andprecise molding with the same
durability as the former model.

©2019 The Japan Steel Works, LTD. All Rights Reserved.

Trends of orders received for medium-sized injection molding
machines (clamping force 200-499 ton)
350

Mass customization strategy

300

Release of ADS
250

200

150

100

50

0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Based on statistics compiled by the Japan
Society of Industrial Machinery Manufacturers
産機工統計（200‐499）(for 200 – 499 tons)

JSW

当社（横型200‐499）(Horizontal-types for 200-499 tons)（The data are expressed as relative values, with FY2009 being 100.）

Mass Customization Strategy
A strategy that aims to achieve differentiation by offering
customized machines that suit the needs of the regional
area or customers, based on the standardized basics.

28

Efforts in Automobile Fields “Up To Now”
Contribution for increase in productivity through improvement of performance and change inmaterials for automobiles
MuCell Expansion Molding
CFRTP Molding

Multi-Material Molding
Machine (Injection facing
type)

Long-Fiber Molding
Engine Cover
Front End Carrier

Instrument
Panel

DSI Molding

Large Sized Electric
Molding Machine
Intake Manifold
BumperMulti-Material Molding Machine(Multifunctional rotary)
Lamp
Meter Panel

Light Alloy
Molding
Magnesium Alloy Injection
Molding Machine©2019 The Japan Steel Works, LTD. All Rights Reserved.

Multi-Material
Molding

Middle Sized Electric
Molding MachineHigh Cycle Molding29

Efforts in Automobile Fields From Now On

Moves ahead of the major shift in the concept of cars
Response by JSW
CASE
MaaS

Weight Saving,
Environmentallyfriendly Materials

Reductionof CO₂Needs

Main targets

Products and technologies

Progress of our
moves

Increase in electronic
accessories

Displays, doorknobs,
thin, precise electrical components, etc.

EHD, USD machines (J’s Drive
System)Already launched

Flexibility in design

Multi-colored and multi-material parts (integration ofcomposite parts)

FLiP (injection subunit),
Multi-material molding machines

Already launched

Increase in sensors

Imaging lenses (for monitors and sensors)

Specialized machines for lenses

In preparation forlaunchWeight saving in drive system,
Parts with precise dimensions*Strengthen with composite materials of GF,CF and
CNF

SOFIT (new foaming molding
technology)

Already launched,in preparation for
application to larger
machines

Seat frames
Structural parts (powertrain casings, etc.)
Casings for electronic devices, frames

MG molding machines (larger scalemodels)To be launched thisyear

Bumpers, instrument panels, rear gates,
fenders, windows (glazing)

2 Platen Ultra Large Injection
Molding Machine

To be launched thisyear

Support for biodegradable plastics, etc.

Suggestion of green molding
machines

Under development

Weight saving

Environmental
performance©2019 The Japan Steel Works, LTD. All Rights Reserved.

30

Efforts in Automobile Fields : Weight Saving
Foaming moldings at lower pressures and lower costs.
Physical Foaming Technology: SOFIT™
 “SOFIT™” is the physical foaming technology that we have
put into practical use after working on its development
ahead of our competitors.

Foaming state for a sample molded using
SOFIT Molding at lower pressures and lower costs makes it
possible to save the weight of automobile parts.
 We are now applying the technology to larger molding
machines in order to achieve further weight savings for theinternal and external equipment of automobiles.

＊µm＝micrometers (0.001㎜)

Gas
unit

Specialized screw cylinder
for SOFITTM

External appearance of machines with SOFITTM©2019 The Japan Steel Works, LTD. All Rights Reserved.

supplier

Quantitative feeder

Details of the cylinder area

31

Efforts in Automobile Fields : Adaptation for large scale magnesium parts
Safe and environmentally friendly molding of magnesium, which excels in weight,
durability and recyclability.
Large scale magnesium molding machine
In pursuit for weight saving of the automobile throughsupply of electronic device casings with high-level
electromagnetic and heat release characteristics, whichsuits the electrification of automobiles and weight saving oflarge scale parts for drive system.

Materials used for production of automobiles

（％）
100
90

0.7

CFRP /

4.0

Plastics

7.9

80

10.2

70

14.5 Mg Alloy

AI Alloy60
50

Ti AlloyHigh

40
Magnesium alloy molding machine“JLM1300MGII” to be launched this year

tension

30

steel

20

Steel

10
0
2010年
Casings for large-scale head-up display unit
(500x400x200)©2019 The Japan Steel Works, LTD. All Rights Reserved.

2015年

2020年

2025年

2030年

Source: Excerpted and processed data of materials prepared by the Ministry of Economy,
Trade and Industry, based on the Vehicle Technologies Program: Goals, Strategies, and
Top Accomplishments (by US Department of Energy)

32

Efforts in Automobile Fields : Adaptation for large scale plastic parts
Development of 2 platen ultra large injection molding machine has completed,through the fusion of technologies in Meiki and JSW.

JSW

Meiki

2 Platen Ultra Large Injection Molding
MachineCompact molding machine with one of the best
specs and performances in the industry
Clamping
force
3,000 ton

Compared toJSWmachines
Shorter by
2.3m©2019 The Japan Steel Works, LTD. All Rights Reserved.

Flexibility insize for molds
Top class in
the industry

Contribution in the production of large scale plastic products
like bumpers

33Absorption Merger of Meiki, Co., Ltd.

To accelerate the expansion of the molding machine business

Improvement of profitability as a group
Optimal arrangement of resources

Adaption for EV-Shift in the automobile industry
 Increased needs for large-scale plastic molded
products due to the electrification of
automobiles
 Adaptation for diversification of composite
molded products

M1300NS-HR-2CJ©2019 The Japan Steel Works, LTD. All Rights Reserved.

Elimination of duplicate function in the group

Improvement of production capability and efficiencyEnhancement of product development

Reinforcement of sales and services



Revision of function sharing with Hiroshima plantStreamlining of business processes and optimization ofstaffing

JM1600AD-MR

34

Progress of The Priority Measures in “JGP2020”©2019 The Japan Steel Works, LTD. All Rights Reserved.

35

3 Basic Policies (Priority Issues) in “JGP2020”

JGP2020 ～Developing foundation for 2030～◆”Growth” in Industry Machinery Products Business,“Rebirth” in Steel and Energy Products Business
Ⅰ. Optimization of Management Resources and Strengthening of Alliances
Optimization through rearrangement of the resources⇒ Active investment for industry machinery product business, Rebuild of cost structure in thesteel and energy products business that suits the current sales scale
Expansion of the businesses through alliance and M&A⇒ Breaking free of adherence toward self-sufficient policies

Ⅱ. Strengthening After-Sales Services (Stock-Based Business)
Enhancement of service force mainly in industrial machinery⇒ Securing stable profitability, improvement of customer satisfaction
Strengthening customer relationship through service business⇒ Development of foundations for the next business

Ⅲ. Acceleration in Exploration and Development of New Businesses
Exploration of new businesses from the view point of mega trends
Fostering and commercialization in the 4 fields (aircrafts, hydrogen, crystals and thin films) + α©2019 The Japan Steel Works, LTD. All Rights Reserved.

36

I. Optimization of Management Resources and Strengtheningof Alliances: Steel and Energy Products Business
Cooperation in production activity with Tsukishima Kikai, Co., Ltd.
Muroran factory of Tsukishima commenced operation on April 1.

Utilization of idle production equipment,
Utilization manufacturing spaces, human resources andtechnologies

Through
Cooperation

Improvement

 Opening ceremony on April 9, 2019

Improvement of efficiency andreduction of manufacturing costs

Expansion of business fields (welded
structures, etc.) through the mutual
Expansionutilization of the technologies in the twocompanies©2019 The Japan Steel Works, LTD. All Rights Reserved.

37

II. Strengthening After-Sales Services

In pursuit of stable profitability and enhancement of customer satisfaction.
Production andInventory
Strategy

Trends of sales for after-service（relative values, with FY2012 being 1）

2.5
2

 Plastic production andprocessing machinery Molding machines
 FPD equipment

1.5
1
0.5
0

GeographicalStrategy

2012

Solution

Reinforcement of service systems mainly in industrial
machinery products business©2019 The Japan Steel Works, LTD. All Rights Reserved.

2017

2018

2020
Forecast

2020予

Sales are steadily increasing.
We continue the improvement of ourservices for the realization of JGP2020.

38

II. Strengthening After-Sales Services :Plastic Production and Processing
Machinery

The number of products delivered is steadily increasing. We further improve our ability to fulfill theneeds for services, mainly through enhancement of customer support bases.
Types of Services

Production
and Inventory
Strategy

GeographicalStrategy

Trends of the accumulated number of units delivered for plastic
production and processing machinery

Solution（relative values, with FY2010 being 1）

Sales of consumables andspare parts●

Periodic maintenance(Overhaul)●

Remodeling with the latest
technology

●

●

●

Technical consultation

●

●

●

Comprehensive
Maintenance Contract

●

●

1.50

●

1.00

0.50
0.00
2010

2015

2018

Our Actions
Enhancement of customer support bases

Foundation of new parts Center

Future plans

Partnership with specialized manufacturer in the Middle East (Apr. 2019-)
Shortening
deliverytimes

Suggestion
for overhaul

JSW-Shanghai

Securing thespace forassembly

JSW-America

EuropeSTEP 1
Foundation in the existing plant(Dec. 2018)

STEP 2
Foundation of new parts center(Oct. 2020-）

China

Enhancement ofservice staff in foreignbases
Subdivision of the
bases

Japan

Americas
Other Asia
JSW-EU(Germany)©2019 The Japan Steel Works, LTD. All Rights Reserved.

JSW-Thailand

JSW Hiroshima plant

Development ofcomprehensive
service businessthrough periodic
maintenance39II. Strengthening After-Sales Services : Molding Machines
The number of products delivered is increasing steadily. We further improve our ability to fulfill
service needs mainly through enhancement of customer support bases.
Service Content

Production
and Inventory
Strategy

GeographicalStrategy

Sales of consumables andspare parts●●

preventive maintenanceand shortening of downtime●●

Retrofit

Trends of the accumulated number of units delivered for
Molding Machines
Solution

200
150

●
●

（relative values, with FY2010 being 1）
Japan

Overseas

100
50
0
1997

2007

2017

2027

Our Actions
Foundation of service and parts center formolding machinesCompleted in Dec. 2018 and started operationin Jan. 2019 on the premises of Hiroshimaplant.
Assembly area for ball screw unit, whoseneeds are expected to increase, will be
expanded in order to establish the supply
system to the world.

Supply of remote maintenance with ICT

Enhancement of customer support bases
in foreign countries
Reinforcement in the area where services areoutsourced to local agencies.

Trial starts for specific domestic customers thissummer.

Service and parts center in the Europe has
founded and started operation in Apr. 2019.

Trials in South East Asia is also planned in thesecond half of FY2019.

Future plans

Development and practicalapplication of predictive andpreventive maintenance
Serviceand
andparts
partscenter
centerforformolding
moldingmachines
machines
Service©2019 The Japan Steel Works, LTD. All Rights Reserved.

Serviceand
andparts
partscenter
centerininthe
theEurope
Europe(Czech)(Czech)Service40

III. Acceleration in Exploration and Development of New
Businesses
Exploration of new businesses from the view point of mega trends.
⇒ Metallic Materials Business Promotion Office has newly founded, in addition to the 4 existing fields(aircrafts, hydrogen, crystals and thin films)

New Business Promotion Headquarters
Aircrafts

Hydrogen

CrystalsThin films

Capital investment and acquisition of

We are expanding the sales for

Acceleration in development for

ECR film forming equipment realizes

certification for production of aircraftpressure vessels based on our

infrastructure and devices for “5G” ismanufacturing of high performancecomponents has finalized under thehydrogen resistance materials

expanding the use of crystalline

films, such as semiconductor laser

guidance of our partner company.

technology and hydrogen stationmaterials in the fields of opticalcoating and Protective layer of

Now metal bonded products andbusiness centered with compressors.

communication, wirelesselectronic devices. In addition to thecomposites products are in production

MH tanks, which are based oncommunication, and sensing.

effort for increase of the sales for ECR

at Muroran plant. Development ofhydrogen absorbing alloy technology,

Following this trend, we are working

equipment, we are expanding themass production system of composite

will be applied to energy storage andon the development of composite

variety of products, such as ALD

products for a commercial airliner is insupply system field and fuel cellboards for SAW, composite substrates

equipment and EB vapor deposition

preparation.

application field.

for optical communication and GaN

equipment.

crystal substrates.

©2019 The Japan Steel Works, LTD. All Rights Reserved.

41

III. Acceleration of Exploration and Development of New
Businesses : Joint Venture with JX Nippon Mining & Metals

Acceleration of rebuilding of steel and energy products business

The Japan Steel Works
Melting and casting technologies
for steel materials

Manufacturing
copper alloys
with high quality
through the fusion of
the technologies
of both companies

JX Nippon
Mining & Metals
Melting, casting and precision rolling
technologies for copper alloys

Through cooperation with JX Nippon Mining & Metals, which is the top company in the highperformance metal materials field, we are expanding our business into this field in addition to existing
steel products.

Overview of the new company

Date of foundation

Aug. 2019 (Plan)

Name

Undecided

Portion of ownership

JSW: 51%, JX: 49%

Location

Muroran, Hokkaido

Conclusion of contract
regarding foundation

Jul. 2019

Description of businessMelting and casting of copper
alloysFoundation of JV

Aug. 2019

Capital stock

100 million yen (Plan)

Start of operation

Before Oct. 2021

©2019 The Japan Steel Works, LTD. All Rights Reserved.

42III. Acceleration in Exploration and Development of New
Businesses : Hydrogen Business
Development of steel pressure vessel for hydrogen station station has completed andcommercial production has started.

Three features for “HyST300 model R,”
the steel pressure vessel for hydrogen station.
Ｃ
1
ｖ

Ｃ
2
ｖ

Durability at the highest
level of the world

Significant reduction inweight and costMore than 3 times the durabilityof conventional products

Approximately 40% reduction inweight,25％ reduction in costＣ
3ｖ
Safety and reliability
equal to or greater thanconventional products

We continue our effort to achieve top share in themarket of pressure vessels for hydrogen stations,where a great growth is expected based on thehydrogen strategies in Japan and other foreigncountries.
©2019 The Japan Steel Works, LTD. All Rights Reserved.

43

Value Creation Model of JSW,
“Yompo-Yoshi (Benefits in all 4 stakeholders)”
Social Issues“Yompo-Yoshi (Benefits in 4 stakeholders)”

Climate change,
Environment load issue,
Destruction of nature

Values Offered to Society

Social responsibility

Customersatisfaction

Customer satisfaction

Steel andenergyProducts that contribute for
reduction of CO2･Injection molding machines(Promotion of light-weightvehicle)･Clad steel pipes(Spread of natural gas)

Employeesatisfaction

Shareholder
satisfaction

Molding
machines

Energy-saving measures,
Resource Depletion,
Nuclear power issueSocial responsibility
Defenseequipment

Effective corporate governance andappropriate information disclosure system©2019 The Japan Steel Works, LTD. All Rights Reserved.

FPD
equipment

Work-life balance,
Aging and shrinking population,Work style reforms

Social responsibility
Customer satisfaction

Stock Business | New Business

Plastic production
and processing

Corporate ethics

Cutting-edge technologies andproducts that are indispensable forthe next generation･Film and sheet equipment(Separators for automotive
batteries)･ FPD equipment(Spread of OLED panels)

Social responsibility
Customer satisfaction
Products that help spread clean
energy・Clad steel pipes(Transport pipes for natural gas)・Hydrogen station(Spread of hydrogen energy)

Employee satisfaction
Shareholder satisfaction
Accomplishment oftransformation into an attractive
firm and increase in stakeholders’satisfaction and corporate value44©2019 The Japan Steel Works, LTD. All Rights Reserved.

45

©2019 The Japan Steel Works, LTD. All Rights Reserved.

Reference©2019 The Japan Steel Works, LTD. All Rights Reserved.

47

Trend of Net Sales, Operating Income and Profit（Unit：Billions of yen）

FY2012FY2013

FY2014FY2015FY2016FY2017FY2018

220.6

188.7

194.6

223.3

212.4

212.9

220.1

Industrial Machinery Products Business

130.1

118.3

126.3

144.3

159.3

170.2

173.6

Plastic production and processing machinery

37.0

28.3

32.5

36.4

36.1

50.2

52.5

Molding machines (consolidated)

40.9

47.0

53.6

56.4

57.6

64.5

72.7

FPD equipment (consolidated)

-

-

-

-

-

-

16.4

Other products

37.7

31.8

25.0

32.6

46.8

37.0

20.4

Consolidated subsidiaries, etc.

14.5

11.2

15.2

18.9

18.8

18.5

11.6

Steel and Energy Products Business

88.2

67.6

66.2

74.8

51.2

40.8

41.2

Electric and nuclear power

37.4

22.6

27.4

19.2

19.3

17.2

12.5

Pressure vessels for oil refineries

4.3

4.1

4.2

1.4

1.7

1.0

-

Clad steel plates and pipes

29.3

26.7

16.2

39.3

13.5

7.0

13.0

Wind turbines

1.1

1.7

5.7

1.2

3.9

1.6

-

Other products

12.3

7.2

7.0

6.9

5.3

5.5

9.5

Consolidated subsidiaries, etc.

3.8

5.3

5.7

6.8

7.5

8.5

6.2

Other Businesses

2.2

2.7

2.0

4.0

1.8

1.7

0.5

Operating Income

16.6

8.8

7.5

14.4

12.3

21.3

24.2

Industrial Machinery Products Business

16.7

12.1

11.3

12.4

15.1

23.8

23.5

Steel and Energy Products Business

△0.5

△3.9

0.7

0.9

2.0

△2.8

△1.5

2.6

0.8

△3.6

0.8

0.3

8.2

5.5

△5.3

△16.6

△4.9

10.7

19.9

Net Sales

Other Businesses
Profit1.1

0.9※From FY2018, based on modified disclosure classifications. Pressure vessels for oil refineries and wind turbines are included in “Other businesses.”©2019 The Japan Steel Works, LTD. All Rights Reserved.

48

Trends of Assets Situation and Cash Flows（Unit : Billions of yen）
FY2012
Total assets

FY2013

FY2014FY2015FY2016FY2017FY2018

303.9

293.1

319.6

293.1

275.3

297.4

305.5

Industrial Machinery Products
Business

96.8

99.3

108.4

124.3

1,237

128.1

150.0

Steel and Energy Products
Business

120.2

111.5

111.4

60.2

375

40.3

39.3

Other Businesses

13.3

12.9

13.0

12.0

11.8

11.7

14.6

Net assets

134.3

139.2

138.2

111.3

107.5

118.6

129.8

Net Assets per Share (JPY)※Since FY2016, amount is after
reserve split of stocks

359.29372.83368.81

299.41

1,446.44

1,592.47

1,746.91

Equity ratio (%)

43.83

47.09

42.72

37.53

38.6

39.3

42.0

Return on Equity (%)

6.35

4.07
11.5

△4.6

14.6

23.7

△13.46

9.6

Operating Cash Flow

△3.88

12.0

26.7

11.0

Investing Cash Flow

△5.8

△5.7

△2.6

△12.1

△13.5

△5.0

△1.3

42.2

49.1

61.4

58.6

77.8

73.8

Financial Cash Flow
Cash and Cash Equivalents at End
of Period△15.2©2019 The Japan Steel Works, LTD. All Rights Reserved.

50.9

△15.0

11.5

△2.9

19.7

4.7

△1.2

△2.4

△1.3

49

Corporate Code of Behavior of The Japan Steel Works, Ltd.
(revised on April 1,2018)
At The Japan Steel Works, Ltd., we will comply with all laws and international rules, both to the letter and in spirit, and fulfill our social
responsibilities with a strong sense of ethics in Japan and overseas as a company that aims to realize a sustainable society based on the following
ten principles.
1. To promote sustainable economic growth and the resolution of social issues, we will develop useful products, technologies and services thatgive consideration to safety through innovation and provide them to society.
2. We will conduct appropriate transactions and responsible procurement based on fair and free competition. We will also maintainsound relationships with political and government bodies.
3. To enhance our corporate value, we will make appropriate corporate information available to the public willingly and fairly and haveconstructive dialogues with a wide range of stakeholders.
4. We will respect the human rights of all people.
5. We will earn the trust and satisfaction of society and customers by responding promptly to inquiries from customers after reflecting
the market and customer needs in our products, technologies and services.
6. We will provide a sound working environment by developing workstyles that respect the diversity, personality and individuality of
employees.
7. We will take actions proactively, recognizing that addressing environmental issues is an important duty for us as a company.
8. We will participate in the community and contribute to its development as a corporate citizen.
9. We will conduct thorough and systematic crisis management against antisocial forces, terrorism, cyberattacks and natural disasters,
etc. that will pose a threat to civil society and corporate activities.
10. Recognizing the realization of the spirit of this code of behavior as its own role, our management will make it fully known to theemployees of the Company and its affiliates after establishing effective governance and encourage the chains to perform acts basedon the spirit of this code of behavior.
If any situation that will lose the trust of society occurs in conflict with the spirit of this code of behavior, our management will takethe initiative in solving the problem, investigating the cause and preventing recurrence to fulfill our responsibility.
©2019 The Japan Steel Works, LTD. All Rights Reserved.

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