FY2022/ Business Results for the Fiscal Year 2022
(Ended March 31, 2023)

May 18th, 2023
Toshio Matsuo
Representative Director & President
The Japan Steel Works, Ltd.
Material Revolution

1

Material RevolutionTM, making
the Japan
worldSteelsustainable
prosperous.
© The
Works, Ltd. and
All Rights
Reserved.
, making the world sustainable and prosperous.

TMNote;The performance forecasts and other forward-looking statements included in this report are based on theinformation that was available 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.

Material Revolution

TM, making the world sustainable and prosperous.

2© The Japan Steel Works, Ltd. All Rights Reserved.

INDEXPART Ⅰ
Results for FY2022
05 Status of Orders Received, Net Sales and Profits
06 Analysis on Changes in Operating Income
07 Results by Segment
08 Industrial Machinery Products Business
09 Material and Engineering BusinessPART Ⅱ
Forecast for FY2023
11 Forecast for Orders, Net Sales and Profits
12 Analysis on Changes in Operating Income
13 Forecast by Segment
14 Industrial Machinery Products Business
15 Material and Engineering Business
16 Trends in Order Backlog and the Forecast
17 Status of Capital Investment, Depreciation,
Cash Flows, Financial Position and R&D Expenses
18 Dividend Policy of JGP2025 and the Results

PART Ⅲ
Business Overview

21 Market Sentiment for the Main Product in the Material andEngineering Business
22 Pelletizers: Continued Strong Demand and JSW Initiatives
23 Outlook for Film and Sheet Manufacturing Equipment
24 Molding machines: Establishing European Bases and Future
Prospects
25 Thermal and Nuclear Power Products

PART Ⅳ
Establishment of Corporate Philosophy,
starting with Purpose, and Formulating Our
New Medium-term Management Plan:
JGP2028
27 Establishment of Corporate Philosophy, starting with
Purpose32 Materiality
33 Formulating Our New Medium-term Management Plan:
JGP2028

Reference:
Composition of the Business Segments and Main Products / Trends in
Net Sales, Operating Income and Profit / Trends in Major Assets andCash Flows / Corporate Code of Behavior of JSW (revised on April 1,
2018)

20 Market Sentiment for the Main Product in the Industrial
Machinery Products Business

Material Revolution

TM, making the world sustainable and prosperous.

3© The Japan Steel Works, Ltd. All Rights Reserved.

[PART I]

Results for FY2022

Material Revolution

4

Material RevolutionTM, making
the Japan
worldSteelsustainable
prosperous.
© The
Works, Ltd. and
All Rights
Reserved.
, making the world sustainable and prosperous.

TMFY2022: Status of Orders Received, Net Sales and Profits
Orders received and net sales increased year on year, while profit decreased.
（Unit: Billion Yen）
Results for FY2021

Previous forecast(A)

Change from the Change from theprevious year previous forecast

FY2022(as of Nov.17, 2022)(B)

Results(C)-(A)(C)-(B)(C)

Orders received

268.3

300.0

276.0

7.7

(24.0)Net sales

213.7

263.0

238.7

25.0

(24.3)

Operating income

15.4

19.0

13.8

(1.6)

(5.2)

(%)

7.2%

7.2%

5.8%

Ordinary income

16.7

20.0

14.9

(1.8)

(5.1)

Profit

13.9

14.0

11.9

(2.0)

(2.1)

189.63190.30162.75(26.88)(27.55)

57.0

58.0

58.0

1.0

0.0

Profit per share(Yen)
Divident per share(Yen)

Material Revolution

TM, making the world sustainable and prosperous.

5© The Japan Steel Works, Ltd. All Rights Reserved.

FY2022: Analysis on Changes in Operating Income
Operating income decreased by 1.6 billion yen due to the increase in variable cost.

（Unit: Billion Yen）

Material Revolution

TM, making the world sustainable and prosperous.

6© The Japan Steel Works, Ltd. All Rights Reserved.

FY2022: Results by Segment
Orders received, net sales and operating income increased YoY in industrial
machinery products segment.
In material and engineering business, orders received increased while net sales
and operating income decreased YoY.
Industrial Machinery Products Business（Unit: Billion Yen）

Results for FY2021

Previous forecast(A)

Change from the Change from theprevious year previous forecast

FY2022(as of Nov.17, 2022)(B)

Results

Operating incom

258.5
224.5
23.5

233.1
202.9
18.9

(%)

10.3%

10.5%

9.3%

Net sales

8.3
31.8
1.2

Material and Engineering BusinessChange from the Change from theprevious year previous forecast

FY2022Previous forecast(as of Nov.17, 2022)(B)

Results

Operating incom

39.0
36.0
0.4

41.1
33.9
(0.8)

(%)

3.3%

1.1%

-2.5%

Net sales

Material Revolution

TM(C)-(A)(C)-(B)

(C)

40.1
40.0
1.3

Orders received(25.4)(21.6)(4.6)（Unit: Billion Yen）

Results for FY2021(A)(C)-(B)

(C)

224.8
171.1
17.7

Orders received(C)-(A), making the world sustainable and prosperous.

1.0
(6.1)
(2.1)

2.1
(2.1)
(1.2)

7
© The Japan Steel Works, Ltd. All Rights Reserved.

FY2022: Industrial Machinery Products Business
Orders received for plastic production and processing machinery decreased in thereaction to the huge order for pelletizers in FY21.
Orders received for molding machines decreased due to the market slowdown in
the later half of FY22.
Net Sales / Operating Income

Orders Received（Unit: Billion Yen）

（Unit: Billion Yen）
Results for
FY2021(A)

Change fromthe previous
year

FY2022Previous
forecast(as of Nov.17,
2022)

(B)

Results(C)-(A)

Change fromthe previous
forecast(C)-(B)

Previous
forecast(as of Nov.17,
2022)

Results

Change fromthe previous
forecast(F)-(D)(F)-(E)

(F)

111.2

125.0

107.3

(3.9)

(17.7)

(9.7)

71.1

76.0

65.4

(5.7)

(10.6)

1.2

(4.1)

42.5

57.5

60.4

17.9

2.9

202.9

31.8

(21.6)

224.8

258.5

233.1

8.3

(25.4)

18.9

1.2

(4.6)

100.0

92.2

30.1

(7.8)

Molding machines

65.3

75.5

65.8

0.5

Others

43.7

49.0

44.9

Total

171.1

224.5

17.7

23.5

Material Revolution

FY2022

(E)

62.1

TM

(D)

(C)

Plastic production
and processing
machinery

Operating income

Results for
FY2021

Change fromthe previous
year, making the world sustainable and prosperous.

8© The Japan Steel Works, Ltd. All Rights Reserved.

FY2022: Material and Engineering Business
Orders received increased mainly driven by the increase in thermal and nuclear
products.

Net Sales / Operating Income

Orders Received（Unit: Billion Yen）
Results for
FY2021

Previous
forecast(A)

Change fromthe previous
year

FY2022(as of Nov.17,
2022)

(B)

Results(C)-(A)

Change fromthe previous
forecast(C)-(B)（Unit: Billion Yen）
Results for
FY2021(D)(C)

FY2022Previous
forecast(as of Nov.17,
2022)

(E)

Results

Change fromthe previous
year

Change fromthe previous
forecast(F)-(D)(F)-(E)(F)

Steel castings andforgings

28.4

26.0

24.9

(3.5)

(1.1)

30.1

28.0

30.6

0.5

2.6

Engineering, etc.

11.6

10.0

9.0

(2.6)

(1.0)

10.0

11.0

10.5

0.5

(0.5)

Total

40.0

36.0

33.9

(6.1)

(2.1)

40.1

39.0

41.1

1.0

2.1

1.3

0.4

(0.8)

(2.1)

(1.2)

Operating income

Material Revolution

TM, making the world sustainable and prosperous.

9© The Japan Steel Works, Ltd. All Rights Reserved.

[PART Ⅱ]

Forecast for FY2023

Material Revolution

10

Material RevolutionTM, making
the Japan
worldSteelsustainable
prosperous.
© The
Works, Ltd. and
All Rights
Reserved.
, making the world sustainable and prosperous.

TMFY2023︓Forecasts for Orders, Net Sales and Profits
Orders received, net sales and profit, all are expected to increase year on year.
（Unit: Billion Yen）

Results for FY2022

Forecast for FY2023

Change from theprevious year

（A）

（B）

(B)-(A)

Orders received

276.0

330.0

54.0

Net sales

238.7

280.0

41.3

Operating income

13.8

18.5

4.7

(%)

5.8%

6.6%

Ordinary income

14.9

19.0

4.1

Profit

11.9

14

2.1

162.75190.26

27.51

58.0

58.0

0.0

Profit per share (yen)Divident per share(yen)

Material Revolution

TM, making the world sustainable and prosperous.

11© The Japan Steel Works, Ltd. All Rights Reserved.

FY2023: Analysis on Changes in Operating Income
Operating income is expected to increase by 4.7 billion yen led by the increase inproduction, sales and prices.
（Unit: Billion Yen）

Material Revolution

TM, making the world sustainable and prosperous.

12© The Japan Steel Works, Ltd. All Rights Reserved.

FY2023: Forecast by Segment
Orders received, net sales and operating income are expected to increasein both segments YoY.
Industrial Machinery Products Business（Unit: Billion Yen）

Results for FY2022

Forecast for FY2023

Change from theprevious year

（A）

（B）

(B)-(A)

Operating incom

233.1
202.9
18.9

284.0
231.0
23.0

(%)

9.3%

10.0%

Orders received
Net sales

Material and Engineering Business（Unit: Billion Yen）

Results for FY2022

Forecast for FY2023

Change from theprevious year

（A）

（B）

(B)-(A)

Operating incom

41.1
33.9
(0.8)

43.0
46.0
1.3

(%)

-2.5%

2.8%

Orders received
Net sales

Material Revolution

TM

50.9
28.1
4.1

, making the world sustainable and prosperous.

1.9
12.1
2.1

13
© The Japan Steel Works, Ltd. All Rights Reserved.

FY2023︓Industrial Machinery Products Business
Orders for plastic production and processing machinery is expected to increase
driven by the increase in film & sheet manufacturing equipment for LiB separator
films. Recovery in demand for molding machinery is expected in automobile
market including EVs.
Net Sales / Operating Income

Orders Received（Unit: Billion Yen）

（Unit: Billion Yen）

Results for
FY2022（A）

Change from

Forecast forthe previous
FY2023year（B）(B)-(A)

Results for
FY2022（C）

Change from

Forecast forthe previous
FY2023year（D）(D)-(C)

Plastic production andprocessing machinery

92.2

106.0

13.8

107.3

131.5

24.2

Molding machines

65.8

74.0

8.2

65.4

78.0

12.6

Others

44.9

51.0

6.1

60.4

74.5

14.1

Total

202.9

231.0

28.1

233.1

284.0

50.9

18.9

23.0

4.1

Operating income

Material Revolution

TM, making the world sustainable and prosperous.

14© The Japan Steel Works, Ltd. All Rights Reserved.

FY2022︓Material and Engineering Business
Orders for steel castings and forgings is expected to grow for power equipment
related demand.

Net Sales / Operating Income

Orders Received（Unit: Billion Yen）

Results for
FY2022（A）

Change from

Forecast forthe previous
FY2023year（B）(B)-(A)（Unit: Billion Yen）

Results for
FY2022（C）

Change from

Forecast forthe previous
FY2023year（D）(D)-(C)

Steel castings andforgings

24.9

34.0

9.1

30.6

36.0

5.4

Engineering, etc.

9.0

12.0

3.0

10.5

7.0

(3.5)

Total

33.9

46.0

12.1

41.1

43.0

1.9

Operating income

(0.8)

1.3

2.1

Material Revolution

TM, making the world sustainable and prosperous.

15© The Japan Steel Works, Ltd. All Rights Reserved.

Tends in Order Backlog and the Forecast（Unit: Billion Yen）

Material Revolution

TM, making the world sustainable and prosperous.

16© The Japan Steel Works, Ltd. All Rights Reserved.

FY2022: Status of Capital Investment, Depreciation, Cash Flows, Financial Position and R&D Expenses
Financial Position

Status of Capital Investment and Depreciation
Capital Investment

15.8

Depreciation

Net Assets
Net Interest-bearing Debt

12.5

141.9

132.4

10.5
6.0

5.7

FY2019FY20204.9

6.1

FY2021

7.3

7.8

6.5

FY2022

FY2023

Interest-bearing Debt
D/E Ratio

151.0

0.39

0.41

0.39

52.0

58.0

58.4

(23.4)(31.4)FY2019FY2020（Unit: Billion Yen）

(47.7)FY2021

170.4

160.6

0.27
43.4

43.6

(43.8)FY2022(25.6)FY2023

Forecast

Forecast

Status of Cash Flows
Operating CF

Investing CF

Status of R&D Expenses
Free CF

22.3

18.9

14.7

19.4
8.1

5.8

0.0
(3.2)

Material and Energy

(2.9)

4.7

4.6

FY2019FY20204.9

5.0

FY2021

FY2022

6.5

0.9

(0.9)
(13.6)(13.1)FY2019Industrial Machinery
New Business

11.5

0.25

FY2020

FY2021

FY2022(21.7)FY2023
Forecast

Material Revolution

TM, making the world sustainable and prosperous.

FY2023
Forecast

17© The Japan Steel Works, Ltd. All Rights Reserved.

Dividend Policy of JGP2025 and the Results
Dividend Policy in the period of JGP2025, medium term management plan.
Paying dividends at a level that ensures dividend on equity (DOE) is 2% or higher
while aiming for a consolidated dividend payout ratio of 30% or more.
■ Schematic of dividend policy
Dividends

ProfitLower–limit dividend(DOE of 2%)

Performance-based dividend(payout ratio of 30%)

Results and forecast
FY2021

FY2022

FY2023
Forecast

Dividend per share (Yen)

57.0

58.0

58.0

Payout Ratio (consolidated)

30.1%

35.6%

30.5%

Material Revolution

TM, making the world sustainable and prosperous.

18© The Japan Steel Works, Ltd. All Rights Reserved.

[PART Ⅲ]

Business Overview

Material Revolution

19

Material RevolutionTM, making
the Japan
worldSteelsustainable
prosperous.
© The
Works, Ltd. and
All Rights
Reserved.
, making the world sustainable and prosperous.

TMMarket Sentiment for the Main Product in the Industrial Machinery Products BusinessIndustrial Machinery
Products Business

Film and sheet manufacturing
equipment

Pelletizers

Businesssentiment（Comparison
with FY2022)

Economic conditions from the perspectivesof order acquisition
 For LiB separators application, recovery is expected from thedelay in investment decision, waiting for policies settled,
occurred in FY22.
 Demand for other industrial application is strong and stable.
 Market condition continues strong mainly in China.
 Solar PV related demand is increasing.

Twin-screw extruders

 Demand for engineering plastics is increasing mainly in China.

Plastic Molding machines Recovery in demand is expected from summer and after.
 Trend of switching from hydraulic to electric machines continues
in the European market.

Magnesium molding machines Demand for the large-sized molding machine, newly developed
and released in the end of FY22, is strong for in-vehicle
equipment.

FPD equipment Demand is strong for display panels application for automobile.

After-sales services

Material RevolutionTM Now in a transitional period due to restrained investment,
recovery from the second half is expected.

, making the world sustainable and prosperous.

20© The Japan Steel Works, Ltd. All Rights Reserved.

Market Sentiment for the Main Product in the Material and Engineering Business

Material andEngineering BusinessBusinesssentiment（Comparison
with FY2022)

Economic conditions from the perspectivesof order acquisition

Steel Casting and
Forgings

 Demand for power and nuclear continues strong.

Engineering, etc.

 Plant maintenance projects are expected.

Material Revolution

TM, making the world sustainable and prosperous.

21© The Japan Steel Works, Ltd. All Rights Reserved.

Pelletizers: Continued Strong Demand and JSW Initiatives
Demand for plastics is expected to continue to increase,supporting consistently high pelletizer sales


Demand for plastic is likely to continue to rise in
the face of economic and population growth.

The wider introduction of renewable energy invarious countries has significantly increased thedemand for ethylene vinyl acetate resin (EVA) for
solar cell encapsulants.

Pelletizer Sales Outlook (INDEX: FY15=1.0)

2.2

1.0

FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28

EVA demand for solar cells
Increase by
Approx. 80%

Investment progress at Hiroshima Plant and future outlook
FY2023
1H

2021

2022

2023

2024

2025

（In value terms, compiled by JSW from various materials）

Sales of pelletizers, which facilitate the mass
production of various plastic raw materials, areexpected to remain high from FY2023 onwards.

Material Revolution

2H

1H

2H

No.9
Assembly Shop

Start of operation

No.10
Assembly Shop

Construction, etc.

FY2025
1H

2H

New
Machining Shop

We are progressing our Hiroshima Plant
investment plan designed to boost plastic
machinery production capacity and efficiency andimprove our large-size machine assembly
capabilities in order to steadily capture demand.

TM

FY2024, making the world sustainable and prosperous.

No.10 Assembly Shop
(expected completion CG)

No.9 Assembly Shop

22
© The Japan Steel Works, Ltd. All Rights Reserved.

Outlook for Film and Sheet Manufacturing Equipment
Demand for EV batteries is expected to risein the medium to long term

Trends in Sales of Film & Sheet
Manufacturing Equipment

EV (PHEV+EV) production volume forecasts(INDEX: FY21＝1.0)

3.5（1,000 units）

50,000Company's Estimate

1.0

Policies Based Estimate

45,000FY2140,000

35,000

30,00025,000

20,00015,000

10,000
2022

2023

2024

2025

2030（CY）

(Prepared by Company from sources such as IEA “Global EV Outlook 2023”and others)

Material Revolution

TM, making the world sustainable and prosperous.

FY22

FY23

FY24

FY25

FY2023 sales are expected to decline year on year
due to delays in investment decisions resulting
from policy assessments.
Customer willingness to invest remains strong
given the long-term demand growth. On a
recovery track since April 2023.
Progressing investment decisions in Europe andthe United States as well as China. Plan to boost
sales by approximately 3.5 times in FY2025
compared to FY2021.
Successful extension of the width has improved the
productivity of the equipment. Will also help
strengthen customer competitiveness.
Production line development at the Muroran and
Meiki Plants also progressing as planned. Will
complete building of 60-line/year system by March
2024.
23© The Japan Steel Works, Ltd. All Rights Reserved.

Molding machines: Establishing European Bases and Future Prospects
Initiatives for expanding sales in European market
 Establishing the European production base as planned- Set up JSW Plastics Machinery Europe Sp. z.o.o in Poland in July 2022
- Plant construction completed in March 2023.

【Overview of the local subsidiary】
Type of business: Assembly, production, and sale of injection molding machines
Total area: 3,350 m2

 Demand for electric machines with excellent energy-saving
performance is growing given underlying decarbonization andenergy environment trends.

- Electric machines can significantly reduce power consumption compared to hydraulic ones,
which still dominate the European market.
- The amount of operating oil used is also being significantly reduced, helping reduce
environmental impact.
- We intend to capture growing demand by shortening lead times through local production andresponding to diverse needs.
Power consumption

Oil consumption〔kWh/h〕〔L〕

Reductionby 60%

Number of molding machines for Europe (index)

Market Share in Europe

Domestic production

Reduction
By 98%

Hydraulic

Production in Europe

2.0
1.0

Electric（Calculated by JSW based on the assumption of large size
injection molding machine (850t in clamping force).)

Material Revolution

TM, making the world sustainable and prosperous.

FY23

FY28

24
© The Japan Steel Works, Ltd. All Rights Reserved.

Thermal and nuclear Power Products
Policy trends in individual countries
Nuclear power generation capacity will grow over the 
medium to long term due to policy changes designed
to promote energy security and decarbonization.



We will use our wealth of development andmanufacturing technologies of forgings & castings forthermal and nuclear power equipment along with ourknowledge of nuclear related standards in each country.
We expect demand for equipment renewal will also riseas operating periods are extended.

【Developments in major markets】
New construction/replacement plans
Measures expected to be pursued under the GX Basic Policy(Cabinet approved on February 10, 2023):- Promote relaunches- Extend the operation period for existing furnaces- Realize next-generation cutting-edge reactor construction(replacement)

Japan

FranceEuropePrimary System

UK

PolandPlanning to build 6-9GW capacity from 2033 onwards.
The first three reactors will be built by Westinghouse ElectricCompany LLC. of the United States.

The
Netherlands

In 2021, the government reviewed its policy to phase out
nuclear power and is now aiming to build two new reactors(2-3GW) with commercial operation date of around 2035.

China

New construction is progressing based on the plan to develop
70GW nuclear power generation capacity by 2025.

Korea

Extending the operating period of existing reactors, resuming
the construction of two reactors. Seeking to promote theexport of nuclear power plants (10units by 2030).
(各種資料より当社作成)

Material Revolution

TM

Secondary System(Steam Supply)

1 unit of EPR is under construction.
In January 2023, the senate passed a bill that included thepromotion of new construction.
In March 2023, the parliament approved a plan to build 6
units of EPR-2 reactors from 2028 onwards.
Also considering a plan to build 8 more units by 2050.
Planning to install eight large reactors and SMRs to help
achieve 24GW of nuclear power generation capacity by 2050.
2 units of EPR are under construction and plans are underway
to build 2 more units.

Asia

Power Generation System and JSWʼs Products

Steam Generator(Power Generation)

Steam Turbine Generator

Pressurizer

Steam
Reactor Pressure Vessel

RPV Shell Forging, making the world sustainable and prosperous.

Turbine Rotor Shaft

Water
JSWʼs Products(Forged/Casted Components)

Generator Rotor Shaft

25© The Japan Steel Works, Ltd. All Rights Reserved.

[PART Ⅳ]

Establishment of Corporate Philosophy, startingwith Purpose, andFormulating Our New Medium-termManagement Plan: JGP2028

Material Revolution

26

Material RevolutionTM, making theworld
sustainable
andAllprosperous.
© The
Japan
Steel Works, Ltd.
Rights Reserved.
, making the world sustainable and prosperous.

TMEstablishment of corporate philosophy, starting with purpose

Group

PurposeWhat is the JSW Groupʼs value?

Material RevolutionTM,
Making the world sustainable and prosperous.

VisionWhat will JSW Group aim for?

Benefiting all stakeholders by developing and implementing
industrial machinery and new materials that solve social issues.

Value Creation Process
How can JSW Group provide value to realize the Vision?

JSW Group Core Competence
Melting, Mixing, and Solidifying

Machine Element and Precision Control

JSW Group will further refine its core competence, develop industrial machineryand new materials that solve social issues, and supply them to the world, thereby
simultaneously creating social value and enhancing sustainable corporate value.

Material Revolution

TM, making the world sustainable and prosperous.

27© The Japan Steel Works, Ltd. All Rights Reserved.

Establishment of corporate philosophy, starting with purpose
The history of our technologies and business and how they relate to society
Company founding - end of WWII

Post-war reconstruction –period of high economic growth

Responding to new social issues

Excellent steel

Responding to current social needs by providing
technological development even after the war.
Supporting social infrastructure around the world.

Founded in 1907 to develop and manufacture
excellent steel to serve as the foundation fordevelopment of Japan as a modern nation.

Today, we continue to contribute toJapanʼs national defense as thenationʼs only artillery manufacturer.

Before the end of WWII, we manufactured artillery and otherproducts as a civilian weapons manufacturer to meetsocietyʼs needs.

Develop a processing machine for the new lightweightmaterial plastic. Contributed to post-war reconstruction.

Plastics

In 1950, developed extruders forplastic production in-house. Delivered
to Japanʼs first petrochemical complex(1958).

We continue to grow as a producer of unparalleled,world-leading plastic manufacturing and processing
machinery.
We help reduce the weight and increase the energysaving features of various components in response to thedramatic increase in potential uses.

Electronic
Devices

Supplying equipment for the manufacture of electronic
devices that are vital for creating a super smart society.
The introduction of thin, high-definition
smartphone displays for social use, madepossible by surface modification devices
such as the ELA system, helps create aconvenient and prosperous society.

Melting, mixing and solidifying technologies ＋ Machine element technology ＋ Precision control technology＝ Creation of the Value Required to Solve Social Issues

Foundation（1907）

Material Revolution

TM, making the world sustainable and prosperous.

28© The Japan Steel Works, Ltd. All Rights Reserved.

Establishment of corporate philosophy, starting with purpose

Material Revolution

TM, making the world sustainable and prosperous.

29© The Japan Steel Works, Ltd. All Rights Reserved.

Establishment of corporate philosophy, starting with purpose

Material Revolution

TM, making the world sustainable and prosperous.

30© The Japan Steel Works, Ltd. All Rights Reserved.

Establishment of corporate philosophy, starting with purpose

Material Revolution

TM, making the world sustainable and prosperous.

31© The Japan Steel Works, Ltd. All Rights Reserved.

Materiality (Important Issues)
Creating Value and Solving Social Issues
through JSW Groupʼs Businesses
Reasons why considered to be of highimportanceMateriality

Realization of a
PlasticResourcesRecycling
Society

Bolstering JSW Groupʼs Management Foundationfor Sustainable Grouth

It is quite important to supply society with allmanner of plastics processing machinery thatrealizes 3Rs + Renewable.
Since JSW Group can leverage its core competence
to the maximum, it can demonstrate our strength
in the development and creation of plastics
processing machinery that meets the demands ofsociety. This is also a high-priority businessexpansion opportunity for JSW Group.

Materiality

Reasons why considered to be of highimportance

Human Capital
Improvement
and Diversity
and Inclusion

The diversification and expansion of our humancapital, including the human resources capable ofdriving the Groupʼs growth, generating innovation,and creating value, is a matter of the highest
priority and importance for strengthening JSWGroupʼs management foundation.

The realization of a low-carbon society is one of
the most important challenges faced worldwide.

Contribution to
a Low-Carbon
SocietyJSW Groupʼs products have contributed to the
reduction oof CO2 emissions, and the demand forsuch products is expected to increase further inthe future.
Reduction of energy consumption of industrial
machinery products and curbing ofCO2 emissions
from the operations of manufacturing sites arealso of JSW Groupʼs responsibility.

Investment in
the Future with
Innovation
Management

Building a 5G/6G-compatible digital infrastructure
will be essential to realize a super-smart society.

Contribution toa Super-Smart
Society

The industrial machinery & new materials of JSW
Group are incorporated into the key components ofthe devices that make up the infrastructure andcould be indispensable for a super-smart society.

GovernanceReinforcementof JSW Group

This is considered to be a highly importantbusiness opportunity for the Group.

Material Revolution

TM, making the world sustainable and prosperous.

For JSW Group to continue contributing to society
in the future, it is essential to maintain andstrengthen its technological superiority by refining
its core competence and expanding its business.
Innovation is another essential factor forsustainable growth. It is important to promote
digital transformation which supports data-based,
quick decision-making, business model innovation,and the creation of new value.
For the sustained growth of JSW Group, it isimportant not only to further strengthen
compliance and governance, but also to engage indialogue with all the stakeholders.
In addition, supplying society with industrial
machinery and new materials of high quality andsuperior reliability is the very foundation of JSW
Groupʼs business and important to the further
strengthening of its quality assurance structureand system.

32© The Japan Steel Works, Ltd. All Rights Reserved.

Formulating Our New Medium-term Management Plan: JGP2028
Constructing a forward-looking plan that determines how we should be operating
ten years from now（Unit: Billion Yen）

Aim to grow into a 500 billion-yen business Group overthe next decade- FY2023 sales are expected to exceed the target for the
final fiscal year of the JGP2025.
- FY2023 operating income is expected to come inbelow plan, prompting an urgent review of potential
remedial measures.
- Having declared the new goal of becoming a 500
billion-yen business in ten years, JSW will formulatequantitative targets for the mid-point of FY2028 anddetermine how we are going to achieve those targets
by the end of FY2023.

Formulate management strategies for solving
material issues

FY2022
ResultJGP2025

Forecast

FY2025
JGP2025

Net sales

238.7

250.0

280.0

270.0

Operatingincome

13.8

20.0

18.5

27.0

%

5.8%

8.0%

6.6%

10.0%

Trends in Net Sales（Unit: Billion Yen）

JGP2028

Toward 300 bn yen
scale of business
270.0

280.0
217.5

Toward 500bn yen
scale of business

FY2024 to 2028

JGP2025- Formulate strategies for solving identified material
issues and promoting growth.



FY2023250.0

Consider the further strengthening of shareholder
returns
FY2019Material Revolution

TM, making the world sustainable and prosperous.

FY2023

FY2024FY2025

FY2028FY203333© The Japan Steel Works, Ltd. All Rights Reserved.

Reference Materials

Material Revolution

34

Material RevolutionTM, making
the Japan
worldSteelsustainable
prosperous.
© The
Works, Ltd. and
All Rights
Reserved.
, making the world sustainable and prosperous.

TMComposition of Business Segments and Major Products
Business
Segments

Industrial Machinery Products Business

Organizations

Plastic Machinery B.D. / Injection Molding Machinery B.D.
/ Industrial Machinery B.D. / Ordnance Business H.Q.

Hiroshima

Yokohama

Material and Engineering BusinessJapan Steel Works M&E, Inc.

Nagoya(Meiki)

Other
Businesses
NewBusiness
Promotion
H.Q.

MuroranProduction
Bases

Plastic production and processing
machinery・Pelletizers
・Film and sheet
manufacturing equipment
・Twin-screw extruders
・After-sales services

Molding machines
・Plastic injection molding
machines
・Magnesium alloy injection
molding machines
・Blow molding machines
・After-sales services

・Rotor shafts・Parts for Nuclear Reactor ・Turbine casingsPressure Vessels
・Die steel& Steam Generators
・Steel rolls for steel mills

Clad steel products
・Clad steel plates

Products

Other machinery・Excimer laser annealing(ELA) systems
・Defense equipment
・Railway products・Hot press devices

Markets

Steel castings andforgings

Petrochemi
cals

Material Revolution

TM

Industrial
Machinery

New BusinessPhotonics
Composite materials
Metal materials

Engineering services
・Steel structure for plant and infrastructure
・Non-destructive inspection and analyticalinspection services
・Steel pressure vessels for hydrogen storage
and hydrogen storage tanks using hydrogen
absorbing alloys

・Laminators
・Deposition systems
・After-sales services

Automobiles

IT

Defense, making the world sustainable and prosperous.

Electric Powerand SteelOil andNatural Gas

NaturalEnergyNew
Business

35© The Japan Steel Works, Ltd. All Rights Reserved.

Trends in Net Sales, Operating Income and Profit（Unit: Billion Yen)FY2017FY2018FY2019FY2020

FY2021

FY2022

212.9

220.1

217.5

198.0

213.7

238.7

Industrial Machinery Products Business

170.2

173.6

171.4

156.3

171.1

202.9

Plastic production and processing
machinery

50.2

52.5

61.3

58.8

62.1

92.2

Molding machines

64.5

72.7

65.3

54.5

65.3

65.8

FPD equipment

-

16.4

-

-

-

-

Others

37.0

20.4

44.8

43.0

43.7

44.9

Consolidated subsidiaries, etc.

18.5

11.6

-

-

-

Material and Engineering Business

40.8

41.2

42.8

38.5

40.0

33.9

Steel castings and forgings

-

-

19.6

19.9

25.4

24.9

Electric and nuclear power

17.2

12.5

-

-

-

-

Pressure vessel for oil refineries

1.0

-

-

-

-

-

Clad steel plates and pipes

7.0

13.0

12.8

10.5

6.0

-

-

-

10.4

8.1

8.6

9.0

Wind turbines

1.6

-

-

-

-

-

Others

5.5

9.5

-

-

-

-

Consolidated subsidiaries, etc.

8.5

6.2

-

-

-

-

1.7

5.2

4.6

3.1

2.6

1.8

21.3

24.2

18.7

10.2

15.4

13.8

Industrial Machinery Products Business

23.8

23.5

19.2

13.9

17.7

18.9

Material and Engineering Business

(1.5)

2.6

2.7

1.8

1.3

(8)

Other Businesses

0.8

0.3

(0.4)

0.0

0.0

(4)

10.7

19.9

9.3

6.8

13.9

11.9

Net Sales

Engineering, etc.

Other Businesses
Operating Income

Profit*Sub‐segment changed in FY2020; Figures from FY2019 have been restated to reflect this change.
• Three companies (GM Engineering CO., Ltd, Nichiyu Machinery Co., Ltd and SM Platek Co., Ltd.), which had been treated as consolidate subsidiaries, were reclassified as the Plastic production and processing machinery.
• FPD equipment, Other products and Consolidated subsidiaries, etc. were reclassified as Other products in the Industrial Machinery Products Business.
• Pressure vessels for oil refineries out of steel castings and forgings in the Material and Engineering Business and wind power maintenance services out of the Other Business were reclassified as Engineering, etc. in the Material and Engineering Business.

Material Revolution

TM, making the world sustainable and prosperous.

36© The Japan Steel Works, Ltd. All Rights Reserved.

Trends in Main Assets and Cash Flows（Unit: Billion Yen)FY2017FY2018FY2019FY2020

FY2021

FY2022

Total Assets

297.4

305.5

297.1

316.2

339.7

348.3

Net Assets

118.6

129.8

132.4

141.9

151.0

160.6

1,592.47

1,746.91

1,778.94

1,908.76

2,031.29

2,162.18

Equity Ratio (%)

39.3

42.0

44.0

44.4

44.0

45.7

Return on Equity (%)

9.6

16.3

7.2

5.1

9.6

7.8

Operating Cash Flow

26.7

1.1

18.9

14.7

22.3

(0.9)

Investing Cash Flow

(5.0)

(1.3)

(13.1)

(3.2)

(2.9)

0.9

Financing Cash Flow

(2.4)

(3.7)

(6.1)

2.7

(2.8)

(20.1)Cash and Cash Equivalents at Endof the Period

77.8

73.8

74.4

88.7

105.7

86.4

Net Assets per Share (yen) ** Since FY2016, amounts are after
reserve-->reverse split of stocks

Material Revolution

TM, making the world sustainable and prosperous.

37© The Japan Steel Works, Ltd. All Rights Reserved.

Corporate Code of Behavior of JSW (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 oursocial responsibilities with a strong sense of ethics in Japan and overseas as a company that aims to realize a sustainable society basedon the following ten principles.

1.

To promote sustainable economic growth and the resolution of social issues, we will develop useful products, technologies andservices that give 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 andhave constructive 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
based on 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.

Material Revolution

TM, making the world sustainable and prosperous.

38© The Japan Steel Works, Ltd. All Rights Reserved.

Material Revolution

39

Material RevolutionTM, making
the Japan
worldSteelsustainable
prosperous.
© The
Works, Ltd. and
All Rights
Reserved.
, making the world sustainable and prosperous.

TM