FY2023 / Business Results for the 1st Half of FY2023

November 16, 2023
Toshio Matsuo
Representative Director & President
The Japan Steel Works, Ltd.
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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.

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INDEXPART Ⅰ
Results for the 1st Half of FY2023

PART Ⅲ
Business Overview

05
06
07
08
09

20

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

22
23
24

Market Sentiment for the Main Product in the
Industrial Machinery Products Business
Market Sentiment for the Main Product in the
Material and Engineering Business
Plastic Production Machinery
Film and Sheet Manufacturing Equipment
Molding machines: Overview and Prospects for25

Nuclear Power Products

21

Magnesium Alloy Injection Molding Machines Business

Reference Materials︓
Composition of the Business Segments and Main
Products / Trends in Net Sales, Operating Income andProfit / Trends in Major Assets and Cash Flows/Corporate philosophy, starting with purpose

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[PART I]

Results for the 1st Half of FY2023

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Status of Orders Received, Sales and Profits
Orders received, sales and profits exceeded YoY.
（Unit: Billion Yen）

FY2022
1st Half(A)

FY2023
1st Half(B)

Year-on-Year
Change(B) - (A)Progress Against
FY2023the Revised
Full Year
Forecast
Revised Forecast(B)/(C)(C)

Orders received

164.2

165.9

1.7

338.0

49.1%

Net sales

103.6

110.1

6.5

280.0

39.3%

Operating income

3.1

5.7

2.6

18.5

30.8%

(%)

3.0%

5.2%

Ordinary income

4.2

6.7

2.5

19.0

35.3%

Profit

1.7

4.7

3.0

14.0

33.6%

23.93

64.73

40.8

190.26

34.0%

29

29.0

0.0

58.0

50.0%

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

6.6%

* Although we have not revised the company-wide performance forecast, we have revised the forecasts for the company-wideorder, sub-segment sales and order. In this document, "Initial Forecast" refers to the forecast in May this year, and"Revised Full-Year Forecast" refers to the forecast in November this year.

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Analysis on Changes in Operating Income
Operating income increased by 2.6-billion-yen with the increase ofsales and price improvement.
（Unit: Billion Yen）

Machinery: (3.0)
Material︓ (0.4)

Machinery: 5.9
Material: 2.5
Others: 0.1

Machinery: (1.3)
Material: (0.2)

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Results by Segments

Both segments increased in sales and profit YoY.
Industrial Machinery（Unit: Billion Yen）

FY2022
1st Half(A)

FY2023
1st Half(B)

Operating income

140.7
87.9
6.6

130.4
92.5
8.2

(%)

7.5%

8.9%

Orders received
Net sales

FY2023
1st Half(B)

Operating income

22.4
14.7
(1.4)

34.4
16.6
0.5

(%)

△ 9.5%

3.3%

Orders received
Net sales(B)-(A)(10.3)
4.6
1.6

FY2023Full Year
Revised Forecast(C)

Progress Against
the Revised
Forecast(B)/(C)

284.0
231.0
22.0

45.9%
40.0%
37.3%

9.5%

（Unit: Billion Yen）

Material and Engineering
FY2022
1st Half(A)

Year-on-Year
ChangeYear-on-Year
Change(B)-(A)

12.0
1.9
1.9

FY2023Full Year
Revised Forecast
(C)

51.0
46.0
2.3

Progress Against
the Revised
Forecast(B)/(C)

67.5%
36.1%
21.7%

5.0%

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Industrial Machinery Products Business
Sales and profit increased YoY driven by plastic production and processing
machinery. Orders received decreased for film and sheet manufacturing
equipment for industrial use (other than those for separator film production).

Net Sales / Operating Income

Orders Received（Unit: Billion Yen）

（Unit: Billion Yen）

FY2022
1st Half(A)

FY2023
1st Half(B)

Year-onYear
Change(B)-(A)FY2023Full Year
Revised
Forecast(C)

Progress
Againstthe
Revised
Forecast(B)/(C)FY2022
1st Half(D)

FY2023
1st Half(E)

Year-onYear
Change(E)-(D)

FY2023Full Year
Revised
Forecast(F)

Progress
Againstthe
Revised
Forecast(E)/(F)

Plastic production andprocessing machinery

37.2

44.5

7.3

112.0

39.7%

72.9

56.8

(16.1)

136.0

41.8%

Molding machines

32.1

28.8

(3.3)

68.0

42.4%

35.2

33.6

(1.6)

66.0

50.9%

Others

18.6

19.2

0.6

51.0

37.6%

32.6

40.0

7.4

82.0

48.8%

Total

87.9

92.5

4.6

231.0

40.0%

140.7

130.4

(10.3)

284.0

45.9%

6.6

8.2

1.6

22.0

37.3%

Operating income

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Material and Engineering Business
Orders received, sales and profits increased YoY with strong growth in steel
forgings and plates.

Net Sales / Operating Income

Orders Received（Unit: Billion Yen）

（Unit: Billion Yen）

FY2022
1st Half(A)

FY2023
1st Half(B)

Year-onYear
Change(B)-(A)

Steel forgings andplates

FY2023Full Year
Revised
Forecast(C)

Progress
Againstthe
Revised
Forecast(B)/(C)FY2022
1st Half(D)

FY2023
1st Half(E)

Year-onYear
Change(E)-(D)

FY2023Full Year
Revised
Forecast(F)

Progress
Againstthe
Revised
Forecast(E)/(F)

10.1

13.0

2.9

34.0

38.2%

15.4

30.0

14.6

44.0

68.2%

4.6

3.6

(1.0)

12.0

30.0%

7.0

4.4

(2.6)

7.0

62.9%

Total

14.7

16.6

1.9

46.0

36.1%

22.4

34.4

12.0

51.0

67.5%

Operating income

(1.4)

0.5

1.9

2.3

21.7%

(Steel castings andEngineering, etc.

※ “Steel castings and forgings” is indicated as “Steel forgings and plates”.

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[PART Ⅱ]

Forecast for FY2023

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FY2023: Forecast for Orders Received, Sales and Profits
Forecast for orders received revised upward.
（Unit: Billion Yen）
FY2022
ResultFY2023
FY2023
Previous Forecast Revised Forecast
(B）
（C）

（A）

Year-on-Year
ChangeChange from
Previous Forecast(C)-(A)(C)-(B)

Orders received

276.0

330.0

338.0

62.0

8.0

Net sales

238.7

280.0

280.0

41.3

0.0

Operating income

13.8

18.5

18.5

4.7

0.0

(%)

5.8%

6.6%

6.6%

Ordinary income

14.9

19.0

19.0

4.1

0.0

Profit

11.9

14.0

14.0

2.1

0.0

162.75190.26190.26

27.51

0.0

58.0

58.00

58.0

0.0

0.0

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

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Analysis on Changes in Operating Income
Operating income will increase by 4.7-billion-yen with the increase of sales
and price improvement.

（Unit: Billion Yen）

Machinery: (8.7)
Material: 0.2

Machinery: 15.1
Material: 3.9
Others: 0.6

Machinery: (3.5)
Material: (1.0)*Values in the parentheses "[ ]" under each bar are the previous forecasts.

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FY2023: Forecast by Segments
Industrial Machinery: Forecast for operating income revised downward.
Material and Engineering: Increase in orders received and operating income fromthe previous forecast is expected.
Industrial Machinery（Unit: Billion Yen）

FY2022
Result（A）

FY2023
Previous
Forecast(B）

FY2023
Revised
Forecast（C）

Operating income

233.1
202.9
18.9

284.0
231.0
23.0

284.0
231.0
22.0

(%)

9.3%

10.0%

9.5%

Orders received
Net sales

Year-on-Year
Change(C)-(A)

50.9
28.1
3.1

（A）

FY2023
Previous
Forecast(B）

FY2023
Revised
Forecast（C）

Operating income

41.1
33.9
(0.8)

43.0
46.0
1.3

51.0
46.0
2.3

(%)

△ 2.5%

2.8%

5.0%

Orders received
Net sales

0.0
0.0
(1.0)

（Unit: Billion Yen）

Material and Engineering
FY2022
ResultChange from
Previous
Forecast(C)-(B)

Year-on-Year
Change(C)-(A)

9.9
12.1
3.1

Change from
Previous
Forecast(C)-(B)

8.0
0.0
1.0

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FY2023 Forecast: Industrial Machinery Products Business
Sales and orders will exceed the previous forecast for plastic production andprocessing machinery.
Forecast for the sales and orders of molding machines are revised downward against
previous year reflecting the tough market situation.
Net Sales / Operating Income

Orders Received（Unit: Billion Yen）

（Unit: Billion Yen）
FY2022
Result（A）

FY2023
Previous
Forecast(B）

FY2023
Revised
Forecast（C）

Year-onYear
Change(C)-(A)

ChangefromPrevious
Forecast(C)-(B)FY2022
Result（D）

FY2023
Previous
Forecast(E）

FY2023
Revised
Forecast（F）

Year-onYear
Change(F)-(D)

ChangefromPrevious
Forecast(F)-(E)

Plastic production andprocessing machinery

92.2

106.0

112.0

19.8

6.0

107.3

131.5

136.0

28.7

4.5

Molding machines

65.8

74.0

68.0

2.2

(6.0)

65.4

78.0

66.0

0.6

(12.0)

Others

44.9

51.0

51.0

6.1

0.0

60.4

74.5

82.0

21.6

7.5

Total

202.9

231.0

231.0

28.1

0.0

233.1

284.0

284.0

50.9

0.0

18.9

23.0

22.0

3.1

(1.0)

Operating income

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FY2023 Forecast: Material and Engineering Business
Orders received expected to exceed the previous forecast driven by the growth of
forgings for thermal and nuclear power products.
Forecast for profit is also revised upward.

Net Sales / Operating Income

Orders Received（Unit: Billion Yen）

（Unit: Billion Yen）
FY2022
Result（A）
Steel forgings and plates

FY2023
Previous
Forecast(B）

FY2023
Revised
Forecast（C）

Year-onYear
Change(C)-(A)

ChangefromPrevious
Forecast(C)-(B)FY2022
Result（D）

FY2023
Previous
Forecast(E）

FY2023
Revised
Forecast（F）

Year-onYear
Change(F)-(D)

ChangefromPrevious
Forecast(F)-(E)

24.9

34.0

34.0

9.1

0.0

30.6

36.0

44.0

13.4

8.0

9.0

12.0

12.0

3.0

0.0

10.5

7.0

7.0

(3.5)

0.0

Total

33.9

46.0

46.0

12.1

0.0

41.1

43.0

51.0

9.9

8.0

Operating income

(0.8)

1.3

2.3

3.1

1.0

(Steel castings and forgings)

Engineering, etc.

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Changes in Order Backlog and Forecast by Segments（Unit: Billion Yen）
Industrial Machinery Products Business

Material and Engineering Business

Others

310.7
47.2
252.7
215.4

42.2

35.0

177.7
160.8
40.6

34.9

263.3
210.3
180.2

136.4

125.2

End of FY2019

End of FY2020

End of FY2021

End of FY2022

End of FY2023
Forecast

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

Financial Position

Status of Cash Flows

Status of R&D Expenses（Unit: Billion Yen）

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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 (No change in full-year dividend forecast)
FY2021

FY2022

Dividend per share (Yen)

57.0

58.0

Payout Ratio (consolidated)

30.1%

35.6%

FY2023
1st half

29.0

Full year(forecast)

58.0
30.5%
18

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[PART Ⅲ]

Business Overview

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

Film and sheet manufacturing
equipment

Pelletizers

Twin-screw extruders

Businesssentiment（Comparison
with FY2022)

Economic conditions from the perspectivesof order acquisition
 For LiB separators application, demand has recovered from thedelay in investment decision, waiting for policies settled, occurredin FY22.
 Demand for other industrial application is slow due to the economic
slowdown in China.
 Market condition continues strong mainly in China.
 Solar PV related demand is increasing.
 Demand for high performance engineering plastic is increasing.
 Investment for the development of next-gen plastic is increasing
despite the tough market situation.

Plastic Molding machines Market continues to be slow from the 2nd half of FY2022.
 Investment for replacement in automobile application is recovering,
while demand for export is still slow.
 Trend of switching from hydraulic to electric machines continues in
European market.

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

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

After-sales services

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

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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 Forgings andPlates Demand for power related product continues strong.
 Demand for nuclear power related products in on the rise,increasing its certainty.

Engineering, etc.

 Plant maintenance projects are expected.

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Plastic Production Machinery
Strong performance on the back of increased demand for plastics; strengthening
production capacity to meet increased demand.
Demand for plastics is expected to continue to grow 
steadily in response to economic growth, population
increases, and a widening of potential applications.
In response to decreased demand for fuel oil
following the shift to EVs and the energy transition,the shift in production to chemical raw materials in
the oil refining process is increasing.
There has been an increase in plans to construct
new plants that can mass produce high-grade
chemicals using less energy and with a lower
environmental impact and in plans to replace smaller
older plants with larger operations.

There has been steady progress in terms of capital
investment at our Hiroshima Plant designed to boost
plastic machinery production capacity and efficiency, andto improve our large-size machine assembly capabilities.
We are currently in the planning and design phase for a
new machine plant that will serve as a pilot as part of
the transformation of the Hiroshima Plant into a smart
factory.
Investment progress at Hiroshima Plant and future outlook

2H
No.9
Assembly Shop

Pelletizer Sales Outlook (INDEX: FY15=1.0)

No.10
Assembly Shop

2.5+

FY2024FY2023

1H

FY20252H

1H

2H

Completed on Oct. 12, 2023, Operation Started.

Construction,
etc.

New
Machining Shop

2.0

1.0

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24

FY25

FY26

FY27

FY28

forecast forecast forecast forecast forecast forecast

Completed No. 9
assembly factory

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Film and Sheet Manufacturing Equipment
Demand for EV batteries is expected to rise in the medium to long term, but it depends
on region
Trends in Sales of Film & Sheet Manufacturing Equipment(INDEX: FY21＝1.0)

EV (PHEV+EV) production volume forecasts

3.0

1.0

（1,000 units）

The pace of increase is expected to
be gradual with the delayed peak

FY21

FY22

FY23

FY24

FY25

FY26

FY27

FY28

forecast

forecast

forecast

forecast

forecast

forecast

It is expected that customer willingness to invest willcontinue given the medium- to long-term demand growth.
The market is splitting into three distinct regions: the UnitedStates, Europe, and China.

They are monitoring, in the Chinese market, to judge theimpact of the economic slowdown and for future policy
trends.



In the United States, the trend is of accelerating
investments and increased inquiries due in part to theimplementation of the IRA.



In the first half of FY23, orders have been placed on themachines with expanded width and higher speed. The
productivity of our equipment has improved significantly,
greatly helping increase added value and strengthen ourcustomersʼ competitiveness.

The plan to build a 60-line/year system by March 2024 is
progressing as planned.

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

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Molding machines: Overview and Prospects for Magnesium Alloy Injection Molding Machines Business

Since the competition of our first actual-use machine in 1994, we have gone on to manufacture more than 700
magnesium alloy injection molding machines.
Design and manufacturing technologies of injection
molding machines

Hopper Magnesium alloy

JLM3000-MGIIeL ultra large size
magnesium injection molding machine【Molded products (examples)】
Screw

CylinderMaterials development andmanufacturing technologies（JSW developed materials that can be used
regularly at temperatures in excess of 600° C）

 In-vehicle equipment  IT-related equipment
・ Display meter panels ・ PCs, tablets
・ Smartphones
・ ECU cases
・ Head-up displays
 Others
・ Consoles
・ Cameras, etc.
MG Precision Co., Ltd. (contract molding company)

The market size is predicted to grow in line with
the increased size and number of in-vehicle
displays and other factors.

In response to growth in demand for in-vehicle
equipment, the composition ratio made up by larger
equipment is rising and sales are increasing.

Forecast of global market size for in-vehicle displays(Unit: Billion dollars)

180.0

Trends in sales of magnesium alloy injection molding machines

280t

650t

850t

1300t

3000t

4.0
3.0

120.0
60.0

1.0
0.0
CY22

CY23 forecast

CY31 forecast

Note 1. Based on sales from business operators
Note 2. Figures given for 2023 and 2031 are forecasted values
Note 3. The market size does not account for LCD-TFT, AMOLED, and Mini/Micro LED for automotive CID, Cluster,
RSE, HUD, and Mirror applications. CID and Cluster include those for Digital Cockpit (Pillar to Pillar Display/Multi
Display). The market size does not account for other on-the-market goods, only genuine products.
(Source: “Global Automotive Display Market: Key Research Findings 2023” released by Yano Research Institute Ltd. on September 20, 2023)

FY18

FY19

FY20

FY21

FY22

FY23

FY28

forecast

forecast

24
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Nuclear Power Products
Policy trends in individual countries

UK and France are leading European countries,
proceeding new-build projects of large sized lightwater reactors are on going.

Responding to the policies to extend operating liseneces
for existing power plants (in US and Japan), demand for
replacement of secondary system is expected.
Policies and/or plans in other countries

Japan

Following policies are proceeding;- Promote relaunches- Extend the operation period for existing furnaces- Realize next-generation cutting-edge reactor construction(replacement)USA- 2 units of large-sized reactors under construction: The 1stunit started commercial operation in July 2023. The 2nd unit
is planned to start the operation in 2024.
- The number of extension of operating licences to 80 yeas
for existing units are increasing.

UK

Planning to install maximum
eight large-sized reactors.
2 units of EPR are underconstruction and plans areunderway to build 2 moreunits.

PolandAP1000 has been chosen by
the government to build 3
units, targeting commercial
operation in 2030ʼs.

SizewellC(EPR x 2)
Hinkley PointC

Netherland

The government plans to
install 2 large reactors.

Borssele?
(PWR x 2)

Gravelines(EPR2 x 2)

Flamanville
3

Penly

Dukovany(PWR x 1~2)

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 (10 units by 2030).

Power Generation System and JSWʼs Products
1 to 4 units of large-sized
reactor are planned to bebuilt.

(EPR)

FranceBugey(EPR2 x 2)

Underconstruction
Plans



Temelin(PWR x 2)

China

Czech

(EPR2 x 2)

EPR x１unit underconstruction.
EPR2 x 6 units approved to bebuilt by senate. Also
considering to build 8 moreunits.

(AP1000 x 3)

Asia

(EPR x 2)

LubiatowoKopalino

RPV Shell Forging(Prepared by the Company from various sources.)

We will respond to the demands utilizing ourknowledge and plentiful experiences on nuclear
related standards and regulations in each country.

Turbine Rotor Shaft

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Reference Materials

26
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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

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

DefenseElectric Powerand SteelOil andNatural Gas

NaturalEnergyNew
Business

27
Material Revolution

TM, making the world sustainable and prosperous.

© 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 Forgings and Plates

-

-

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.

28
Material Revolution

TM, making the world sustainable and prosperous.

© 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

29
Material Revolution

TM, making the world sustainable and prosperous.

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

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.

30
Material Revolution

TM, making the world sustainable and prosperous.

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

31
Material Revolution

TM, making the world sustainable and prosperous.

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