May 19th, 2022

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

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

Discovery of Misconducted Quality Inspections at Japan Steel Works M&E, Inc.

1. Outline of the Misconducted Quality Inspection[Products]
Rotor shaft forgings for steam turbine and generator, retaining ring forgings for generator[Misconduct]
Residual Stress Test and Hardness test: Change or deficiency of measurement position,
Rewriting of measured value.
Ladle Analysis: Omitting and/or Rewriting Gas Analysis Value.

2. JSW’s Response
Establishment of Special Investigating Committee
Member: Mr. Katsuyuki Miyakawa, Partner of Attorney of Tokyo‐Marunouchi Law Office
Mr. Kaoru Takamatsu, Partner of Attorney of Hayabusa Asuka Law Offices
Purpose: Detailed fact‐finding and cause investigation, expansion of investigation targets and verification,
advice for formulating recurrence prevention measures, investigation and verification of thequality assurance system of entire JSW, advice based on those results
Establishment: May 9th, 2022
Schedule: The survey will be conducted targeting the end of October 2022, and the results will be
disclosed. The progress will be disclosed in a timely and appropriate manner.
Fact‐finding and reporting to related companies
Report to our customers the facts and JSW’s technical proposal on each project which misconduct isfound, then discuss the countermeasure based on the technical evaluation performed by customers.
© The Japan Steel Works, Ltd. All Rights Reserved.

2

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.

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

3

INDEX
Discovery of Misconducted Quality
Inspections
PART Ⅰ
Results for FY2021
06 Status of Orders Received, Net Sales and Profits
07 Analysis on Changes in Operating Income
08 Results by Segment
09 Industrial Machinery Products Business
10 Material and Engineering Business
11 Status of Capital Investment, Depreciation, Cash
Flows, Financial Position and R&D Expenses

PART Ⅱ
Forecast for FY2022
13 Forecasts for Orders, Net Sales and Profits
14 Analysis on Changes in Operating Income
15 Forecast by Segment
16 Industrial Machinery Products Business
17 Material and Engineering Business18 Trends in Order Backlog and the Forecast© The Japan Steel Works, Ltd. All Rights Reserved.

PART Ⅲ
Business Overview
20 Market Sentiment for the Main Product in the
Industrial Machinery Products Business
21 Market Sentiment for the Main Product in the Materialand Engineering Business
22 JGP2025︓ Progress in the Implementation of theFour Basic Policies
23 Prospects on Film and Sheet Manufacturing
Equipment Business24 Injection Molding Machines: New Production Base inEurope.
25 Current Status of Gallium Nitride (GaN) Business

Reference Materials (26〜31）︓
Introduction of JSWʼs New President /Composition of theBusiness Segments and Main Products / Trends in Net Sales,
Operating Income and Profit / Trends in Major Assets and Cash
Flows / Corporate Code of Behavior of JSW (revised on April 1,
2018)

4

Results for FY2021
PART I© The Japan Steel Works, Ltd. All Rights Reserved.

5

FY2021: Status of Orders Received, Net Sales and Profits

Orders received, net sales and profits increased year on year.
(in billions of yen)Previous forecast(A)

Change from the Change from theprevious year previous forecast

FY2021Results for FY2020(as of Nov.19, 2021)(B)

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

Orders received

181.0

271.0

268.3

87.3

(2.7)

Net sales

198.0

226.0

213.7

15.7

(12.3)

Operating income

10.2

16.0

15.4

5.2

(0.6)

(%)

5.2%

7.1%

7.2%

Ordinary income

10.7

16.0

16.7

6.0

0.7

Profit

6.8

11.0

13.9

7.1

2.9

93.76

149.55

189.63

95.87

40.08

35

45

57

22

12

Profit per share(Yen)
Divident per share(Yen)© The Japan Steel Works, Ltd. All Rights Reserved.

6

FY2021: Analysis on Changes in Operating Income
Operating income increased by 5.2 billion yen reflecting the increase in production, sales & prices, andalso the absence of the loss on valuation of retirement benefit obligations and inventories recorded in theprevious fiscal year.
(in billions of yen)

+7.7

(6.8)
+0.3

+4.8

15.4

[(0.2)]
Unclassifiable
expenses

(1)

10.2

[(4.8)][+8.5]

Variable
Increase/Decrease Cost

in Production,
Sales and Prices[(2.7)]
Fixed Cost

+0.2[+4.8]
Absence of Provision
Impact ofof Retirement
Forex
Benefits Posted theFluctuations
Previous Year[+0.2]

Average exchange rates for sales in USD

FY2020: JPY107/USD
FY2021: JPY108/USD

FY2020*Value in the parentheses"[ ]" under each bar is previous forecast.

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

FY2021

7

FY2021: Results by Segment
Orders received and net sales increased in both business segments year on year.
Industrial Machinery Products Business(in billions of yen)

Results for FY2020

Previous forecast

(A)

145.2
156.3
13.9
8.9%

Orders received
Net sales
Operating incom(%)

Change from the Change from theprevious year previous forecast

FY2021(as of Nov.19,
2021)

Results

(B)

(C)

228.5
180.5
18.8
10.4%

224.8
171.1
17.7
10.3%

(C)-(A)

79.6
14.8
3.8

Material and Engineering Business

Operating incom
(%)

32.7
38.5
1.8
4.7%

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

Change from the Change from theprevious year previous forecast

FY2021
Previous forecast(A)

Net sales

(3.7)
(9.4)
(1.1)

(in billions of yen)

Results for FY2020

Orders received(C)-(B)(as of Nov.19,
2021)

Results

(B)

(C)

39.0
42.0
1.2
2.9%

40.1
40.0
1.3
3.3%

(C)-(A)

7.4
1.5
(0.5)

(C)-(B)

1.1
(2.0)
0.1

8

FY2021: Industrial Machinery Products Business
Orders for “plastic production and processing machinery” increased YoY mainly by significant growth in film
and sheet manufacturing equipment.
Orders for “molding machines” increased with the growth in both plastic and magnesium injection molding
machines YoY.

Net sales / Operating income

Orders received(in billions of yen)
Results for
FY2020(A)

Change fromthe previous
year

FY2021
Previous
forecast(as of Nov.19,
2021)

(B)

Results(C)-(A)

Change fromthe previous
forecast(C)-(B)

Results for
FY2020(D)(C)

FY2021
Previous
forecast(as of Nov.19,
2021)

Results

Change fromthe previous
year

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

(E)

(F)

47.4

107.5

111.2

63.8

3.7

(5.7)

57.4

81.5

71.1

13.7

(10.4)

0.7

0.2

40.4

39.5

42.5

2.1

3.0

171.1

14.8

(9.4)

145.2

228.5

224.8

79.6

(3.7)

17.7

3.8

(1.1)

Plastic production
and processing
machinery

58.8

66.0

62.1

3.3

(3.9)

Molding machines

54.5

71.0

65.3

10.8

Others

43.0

43.5

43.7

Total

156.3

180.5

13.9

18.8

Operating income(in billions of yen)

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

9

FY2021: Material and Engineering Business

Order increased with the growth in clad plates and forgings.

Orders received

Net sales / Operating income(in billions of yen)
Results for
FY2020Previous
forecast(A)

Change fromthe previous
year

FY2021(as of Nov.19,
2021)

(B)

Results(C)-(A)

Change fromthe previous
forecast(C)-(B)(in billions of yen)
Results for
FY2020(D)(C)

FY2021
Previous
forecast(as of Nov.19,
2021)

(E)

Results

Change fromthe previous
year

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

Steel castings andforgings

19.9

25.5

25.4

5.5

(0.1)

21.9

21.0

24.2

2.3

3.2

Clad steel plates
and pipes

10.5

6.5

6.0

(4.5)

(0.5)

1.7

8.5

7.2

5.5

(1.3)

Engineering, etc.

8.1

10.0

8.6

0.5

(1.4)

9.1

9.5

8.7

(0.4)

(0.8)

38.5

42.0

40.0

1.5

(2.0)

32.7

39.0

40.1

7.4

1.1

1.8

1.2

1.3

(0.5)

0.1

Total

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

10

FY2021: Status of Capital Investment, Depreciation, Cash Flows, Financial Position and R&D Expenses
Financial Position

Status of Capital Investment and Depreciation
Capital Investment

Depreciation
12.5

10.5

9.9
6.4
4.0

4.4

FY2017FY2018Net Assets

Interest-bearing debt

Net interest-bearing debt

D/E ratio

6.0

FY2019FY20204.9

6.1

FY2021

Operating CF
26.7

Investing CF

0.39

0.41

52.7

52.0

58.0

58.4

(21.5)(23.4)(31.4)FY2020(47.7)FY2021FY20190.39

Status of R&D Expenses
Industrial Machinery

Free CF
22.3

18.9

21.7

0.41

FY2018

Status of Cash Flows

151.0

141.9

132.4

129.8

5.7

(in billions of yen)

14.7

4.3

4.5

4.7

Material and Energy
4.5

4.9

19.4
11.5

1.1

(5.0)

(0.2)

5.8

(1.3)

(3.2)

(2.9)

FY2020

FY2021(13.1)FY2017FY2018FY2019© The Japan Steel Works, Ltd. All Rights Reserved.

FY2017FY2018FY2019FY2020

FY202111

Forecast for FY2022
PART Ⅱ© The Japan Steel Works, Ltd. All Rights Reserved.

12

FY2022︓Forecasts for Orders, Net Sales and Profits
Orders received, net sales and ordinary income are expected to increase YoY.
(in billions of yen)

Results for FY2021

Forecast for FY2022

Change from theprevious year

（A）

（B）

(B)-(A)

Orders received

268.3

280.0

11.7

Net sales

213.7

266.0

52.3

Operating income

15.4

21.5

6.1

(%)

7.2%

8.1%

Ordinary income

16.7

22.0

5.3

Profit13.9--

189.63

-

-

57

-

-

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

Note: Net income for FY2022 has not been estimated because it is difficult to predict the impact of the misconduct of quality test found on some of the
products manufactured by one of the subsidiaries, Japan Steel Works M&E, Inc., on business performance at this time. For this reason, the dividend for
FY2022 is not decided. We will announce the forecast of net income and the dividend as soon as a rational calculation becomes possible.
© The Japan Steel Works, Ltd. All Rights Reserved.

13

FY2022: Analysis on Changes in Operating Income
Increase of 6.1 billion yen mainly because of rises in production and net sales.
(in billions of yen)

+14.8

(3.5)
(4.5)
Variable
Cost
Fixed
cost

+0.2

(0.9)

Impact of
Forex
Fluctuations

Unclassifiable
expenses

21.5

15.4
Increase/Decreasein Production,
Sales and Prices

Average exchange rates for sales in USD

FY2021: JPY108/USD
FY2022: JPY112/USD

FY2021© The Japan Steel Works, Ltd. All Rights Reserved.

FY2022
Forecast
14

FY2022: Forecast by Segment
Industrial machinery products business is expected to continue to be thedriver for the company-wide performance.
Industrial Machinery Products Business(in billions of yen)

Results for FY2021

Forecast for FY2022

Change from theprevious year

（A）

（B）

(B)-(A)

Operating incom

224.8
171.1
17.7

238.5
221.0
24.5

(%)

10.3%

11.1%

Orders received
Net sales

Material and Engineering Business

13.7
49.9
6.8

(in billions of yen)

Results for FY2021

Forecast for FY2022

Change from theprevious year

（A）

（B）

(B)-(A)

Operating incom

40.1
40.0
1.3

38.5
42.0
1.5

(%)

3.3%

3.6%

Orders received
Net sales© The Japan Steel Works, Ltd. All Rights Reserved.

(1.6)
2.0
0.2

15

FY2022︓Industrial Machinery Products BusinessFavorable market condition continues for both “plastic production
and processing machinery” and “molding machines”.
Orders received

Net sales / Operating income(in billions of yen)

Results for
FY2021

Change from

Forecast forthe previous
FY2022

（A）

year

（B）

(B)-(A)(in billions of yen)

Results for
FY2021（C）

Change from

Forecast forthe previous
FY2022year（D）(D)-(C)

Plastic production andprocessing machinery

62.1

96.0

33.9

111.2

111.5

0.3

Molding machines

65.3

79.0

13.7

71.1

77.0

5.9

Others

43.7

46.0

2.3

42.5

50.0

7.5

Total

171.1

221.0

49.9

224.8

238.5

13.7

17.7

24.5

6.8

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

16

FY2022︓Material and Engineering BusinessAround the same level of orders as last fiscal year is expected with
the increase in Engineering, etc.
Orders received

Net sales / Operating income(in billions of yen)

Results for
FY2021

Change from

Forecast forthe previous
FY2022

（A）

year

（B）

(B)-(A)(in billions of yen)

Results for
FY2021（C）

Change from

Forecast forthe previous
FY2022year（D）(D)-(C)

Steel castings andforgings

28.4

30.5

2.1

30.1

28.0

(2.1)

Engineering, etc.

11.6

11.5

(0.1)

10.0

10.5

0.5

Total

40.0

42.0

2.0

40.1

38.5

(1.6)

1.3

1.5

0.2

Operating income

Note: From FY2022, the product category “Clad steel plates and pipes” has been abolished. Clad steel plate has been classified into “Steel castings andforgings”, and clad steel pipe has been classified into “Engineering, etc.”© The Japan Steel Works, Ltd. All Rights Reserved.

17

Tends in Order Backlog and the Forecast(in billions of yen)

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

18

Business overview
PART Ⅲ© The Japan Steel Works, Ltd. All Rights Reserved.

19

Market Sentiment for the Main Product in the Industrial Machinery Products BusinessIndustrial Machinery
Products BusinessBusinesssentiment（Comparison
with FY2021)

Film and sheet manufacturing
equipment

Economic conditions from the perspectivesof order acquisition
 Reflecting robust infrastructure investment against the
backdrop of an increase in EV production, market
conditions for LiB separator film continue to be favorable.
 Demand for industrial use is also strong.

Pelletizers

 Market conditions are favorable mainly in China.

Twin-screw extruders

 Market is recovering from the affect of COVID-19.

Molding machines Market has recovered and demand continues to be strong.
 In Europe, new trend to switch injection molding machinesfrom hydraulic ones to electric.

FPD equipment

 Investment is increasing with the recovery in demand forsmartphones and panels for IT equipment.

After-sales services

 The market is on a path to recovery from the bottom in the
1Q of FY20.

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

20

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

Material and Engineering
Business

Businesssentiment（Comparison
with FY2021)

Economic conditions from the perspectivesof order acquisition

Steel castings andforgings

 Market is in favorable condition recovering from the affectof COVID-19.
 In response to the misconduct in quality testing on theforgings for power plants, new order receiving will becarefully judged.

Clad Products Investment in oil refining and petrochemical field is on arecovery trend due to the high price of crude oil.

Engineering, etc.

 Plant maintenance and public project-related work are
expected.

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

21

JGP2025: Progress in the Implementation of the Four Basic Policies
Basic policies

Specific Measures••(1) Towards the unprecedented generalmanufacturer of plastic processing machinery in
the world(3) Make a constant profit in the Material andEngineering Business(3) Create new core businesses(4) Implementation of ESG management

Steadily enhanced the production system to establish the 60-line based production of film andsheet manufacturing equipment for separators, demand for which is expected to growsignificantly for EV production
Stepped up efforts to increase the production of film and sheet manufacturing equipment for capacitors,
etc.

•

Constructing a technology development center at the Hiroshima Plant to work on chemical recycling•

Developed a standard model twin-screw extruder for the global market and expanded sales to China
and Southeast Asia•

Developed a large magnesium alloy injection molding machine, demand for which is expected to rise inline with reductions in automotive weight•

New fabrication base for injection molding machine is planned to be placed in Europe•

Increased efforts to review the product portfolio for the purpose of improving the profitability of forged
steed products•

Scaling back the clad steel pipe business, which consists mainly in pipes for the transportation ofnatural gas, to specialize in the clad steel plate business•

Developed and commercialized next-generation semiconductor-related equipment, among otherproducts, and further enhanced the lineup of products in the electronic device-related equipment
business
Commenced operation of large-scale validation equipment with an eye to the mass-productionof gallium-nitride substrates••

Completed the world's most advanced production equipment of copper alloy materials and commenced
operation•

Accelerated ESG initiatives by installing the ESG Promotion Office© The Japan Steel Works, Ltd. All Rights Reserved.

22

Prospects on Film and Sheet Manufacturing Equipment Business
Automotive battery manufacturers and separator film manufacturers continue toincrease investment in anticipation of the acceleration of EV production
Forecast of the number of EV (PHEV andEV) produced（*）

Our forecast

Market-based（2020 forecast）

Policy-based（2020 forecast）

Market-based（20201 forecast）

Policy-based（2021 forecast）(Thousand units)

60,000(100 million ㎡)

Separator
film production capacity
セパレータフィルム⽣産能⼒

300
200

Approx. 2
times

100

50,000040,000

Forecastline hasbeen
moved up

30,000

2020

2021

2025
*Our forecast

Taking the lead time into consideration, the market demand
will rise to 80 to 100 lines per year during the period from2022 to 2025, which includes 50 to 60 lines per year forwhich JSW is expected to receive orders.

20,00010,0000
Source:

2020

2021

2022

2023

2024

2025

2030 (Year)

Data for the "2020 forecast" has been been cited from the 2020 report on the current status and future outlook of theautomotive lithium-ion battery market (the first half report) issued by Yano Research Institute Ltd., and data for the "2021
forecast" has been been cited from the 2020-2021 report on the current status and future outlook of the automotive
lithium-ion market issued by Yano Research Institute Ltd. The report used for the "2021 forecast" reflects trends, such as
the economic effects of COVID-19, observed after the issuance of the report used for "2020 forecast."(*) The policy-based forecast is based on the scenario in which relative high growth rates are maintained, providing thattargeted numbers of xEV (electric vehicles) introduced by automobile manufacturers and governments of respective
countries will be in line with their projections.
The market-base forecast is based on the scenario in which growth rates are lower than those in the policy-based forecast,taking into consideration a certain amount of time required to address a range of issues for the popularization of xEV andexpansion of the market thereof.
"2020 forecast" data is the estimated value for 2020 and forecast value (as of July 2020) after 2021, and "2021 forecast"data is the actual value for 2020 and forecast value (as of February 2021) after 2021

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

Our response
The Company will move up the initial plan andestablish a 50 line-based production system
and 60 line-based production system
by March 2023 and March 2024, respectively.
23

Injection Molding Machines: New Production Base in Europe.
Update of market conditions in Europe
European molding machine manufacturers have been supplying its market with hydraulic molding machines for many years.
However, arket demand is shifting to electric molding machines reflecting a rise in environmental awareness.

100%

欧州市場におけるシェア
Market Share in Europe

Percentage of electric molding machinesat Japanese/European Suppliers
Made in Japan
⽇本製
Percentage of small or
medium-sized electric
中・⼩型電動化率
molding machines.
Made in Japan

⽇本製
Percentage of large-sized

The percentage of electric
power-based machines is
expected to rise going forward.

50%

JSW’s Market Share
2 - 3％

electric

⼤型電動化率molding machines
Made in Europe
Percentage of small or
欧州製
medium-sized electricmolding machines.
中・⼩型電動化率
Made in Europe
Percentage of large-sized
欧州製
electric molding
machines
⼤型電動化率

0%
2010

2012

2014

2016

2018

2020

Market size of 10,000 units
per year in Europe as a whole(based on the Company's survey)

LatviaRussiaLithuania
Denmark
RussiaBelarus

JSW’s response
Establish a production and distribution facility in the suburb of
Warsaw in Poland(total area of 3,350 square meters)

PolandNetherlands

UkraineGermany
Belgium

Czech
Luxembourg

Aim to double or more the market share in Europe with its
accumulated expertise & experiences in electric molding machines
especially with large-sized machines where JSW has such a strong
competitiveness.

Moldova

Austria
Liechtenstein

Hungary
Rumania

Switzerland

FranceSlovenia
Croatia
BosniaMonaco© The Japan Steel Works, Ltd. All Rights Reserved.

Slovakia

San Marino

SerbiaBulgaria

24Current Status of Gallium Nitride (GaN) Business
Development of the mass production method ofgallium nitride (GaN) single crystal substrates
・The Company, Mitsubishi Chemical Corporation and Tohoku
University engaged successfully in the joint development of a lowpressure acidic ammonothermal method-based manufacturing
technology from 2017 to 2019, confirming the uniform growth offour inches.
(NEDO/ Next power electronics project to create a low-carbon society)

・The team started a demonstration experiment with an eye to massproduction from 2020.
It succeeded in the production of a four-inch gallium nitride
substrate by operating a large-scale validation facility in May 2021.
(NEDO/ Strategic programs to innovate energy-saving technologies)

Gallium nitride (GaN) crystals
that were grown in the large
validation facility[Areas where gallium nitride (GaN) substrates are expected to contribute]
Power semiconductors: The substrates will contribute to energy saving and power saving because
power loss is reduced significantly compared to silicon substrates
High-speed telecommunications: The substrates will contribute to super high-speed and large
capacity data transmission because high frequencies can be
operated on broad bandwidths.
© The Japan Steel Works, Ltd. All Rights Reserved.

25

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

26

Introduction of JSW’s New President

Representative Director & President

Toshio Matsuo
Born March 6, 1962
Graduated from the faculty of engineering of
Kyushu University
April 1984: Joined The Japan Steel Works, Ltd.
(JSW)
April 2013: Appointed Deputy General Manager
of JSW's Hiroshima Plant
April 2015: Appointed General Manager of JSW's
Hiroshima Plant
April 2016: Appointed JSW's Executive Officer
April 2017: Appointed JSW's Managing Executive
Officer
April 2020: Appointed JSW's Representative
Director and Executive Vice
President
April 2022: Appointed JSW's Representative
Director and President© The Japan Steel Works, Ltd. All Rights Reserved.

27

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 reactors
・Turbine casings(shell, head etc.)
・Die steel
・Parts for steam generators ・Steel rolls for steel
manufacturing

Clad steel products
・Clad steel plates
・Clad steel pipes

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

IT

DefenseElectric Powerand SteelOil andNatural Gas

NaturalEnergyNew
Business

28

Trends in Net Sales, Operating Income and Profit(in billions of yen)

Net sales

FY2016FY2017FY2018FY2019

212.4

212.9

220.1

FY2020

FY2021

217.5

198.0

213.7

159.3

170.2

173.6

171.4

156.3

171.1

Plastic production andprocessing machinery

36.1

50.2

52.5

61.3

58.8

62.1

Molding machines

57.6

64.5

72.7

65.3

54.5

65.3

FPD equipment

-

-

16.4

-

-

-

Others

46.8

37.0

20.4

44.8

43.0

43.7

Consolidated subsidiaries, etc.

18.8

18.5

11.6

-

-

-

Material and Engineering Business

51.2

40.8

41.2

42.8

38.5

40.0

Steel castings and forgings

-

-

-

19.6

19.9

25.4

Electric and nuclear power

19.3

17.2

12.5

-

-

-

Pressure vessel for oil refineries

1.7

1.0

-

-

-

-

Clad steel plates and pipes

13.5

7.0

13.0

12.8

10.5

6.0

-

-

-

10.4

8.1

8.6

Wind turbines

3.9

1.6

-

-

-

-

Others

5.3

5.5

9.5

-

-

-

Consolidated subsidiaries, etc.

7.5

8.5

6.2

-

-

-

1.8

1.7

5.2

4.6

3.1

2.6

12.3

21.3

24.2

18.7

10.2

15.4

Industrial Machinery Products Business

15.1

23.8

23.5

19.2

13.9

17.7

Material and Engineering Business

(2.8)

(1.5)

2.6

2.7

1.8

1.3

Other Businesses

0.9

0.8

0.3

(0.4)

0.0

0.0

(4.9)

10.7

19.9

9.3

6.8

13.9

Industrial Machinery Products BusinessEngineering, 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.

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

29

Trends in Main Assets and Cash Flows(in billions of yen)

FY2016FY2017FY2018FY2019FY2020

FY2021

Total Assets

275.3

297.4

305.5

297.1

316.2

339.7

Net Assets

107.5

118.6

129.8

132.4

141.9

151.0

1,446.44

1,592.47

1,746.91

1,778.94

1,908.76

2,031.29

Equity Ratio (%)

38.6

39.3

42.0

44.0

44.4

44.0

Return on Equity (%)

△4.6

9.6

16.3

7.2

5.1

9.6

Operating Cash Flow

12.0

26.7

1.1

18.9

14.7

22.3

Investing Cash Flow

(13.5)

(5.0)

(1.3)

(13.1)

(3.2)

(2.9)

Financing Cash Flow

(1.2)

(2.4)

(3.7)

(6.1)

2.7

(2.8)

Cash and Cash Equivalents at Endof the Period

58.6

77.8

73.8

74.4

88.7

105.7

Net Assets per Share (yen) ** Since FY2016, amounts are after
reserve-->reverse split of stocks© The Japan Steel Works, Ltd. All Rights Reserved.

30

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.

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

31

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