New Medium-Term Management Plan:
JGP2017(JSW Group Growth Plan FY2015-2017)

1 Corporate Vision and Numerical Targets“Advancing toward Top Global & Niche Corporate Group”
Aiming to achieve top share at key points in customer value chains

JGP2017(Billions of yen)

JSW Group (Consolidated)

FY2014 (Actual)

FY2017 (Plan)

FY2020 (Goal)

Net sales¥194.6More than ¥220.0

More than ¥250.0

Operating income (ratio)¥8.2 (4.2%)

More than ¥13.0 (6%)

More than ¥20.0 (8%)

ROA

‒1.2%

Above 3%

Above 4%

ROE

‒2.7%

Above 5%

Above 8% (*)(*) Increase earnings power and improve asset efficiency to swiftly achieve ROE of higher than 8% after JGP2017

2 Basic Policies for JGP2017
Policy 1

Policy 2

Increase profitability of existing businesses

Foster new products & businesses and makethem competitive as soon as possible▶ Pursue product & service differentiation▶ Strengthen total-cost competitiveness▶ Develop service & solution businesses▶ Reinforce initiatives in growth markets▶ Promote businesses based on core management
resources▶ Optimize timeframe and systems for promoting
new products & businesses

Policy 3

Reinforce Group management and promote alliances

Strict management control based on Action Plan (implement PDCA)
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New Medium-Term Management Plan: JGP2017

3 Business Strategies by Segment
Steel and Energy Products Segment(Billions of yen)

FY2014

Defensive management
Defensive management

Net sales
Operating loss

Achieve steady growth and prepare for renewed growth after JGP2017▶ Improve asset efficiency and productivity▶ Review and selectively strengthen
product lineup

Reduceinvestment

Reviewbusinessdomains

FY2017

Maintainprofitability

Net sales
Operating income

Industrial Machinery Products Segment(Billions of yen)

FY2014

Offensive management

Net sales¥126.3
Operating income ¥11.3

Identify growth opportunities and accelerate business expansion▶ Restructure production lines in Hiroshima
and Yokohama plants to improve
productivity▶ Actively promote and utilize alliances

Pursuestrategic
investment

Expandbusinessdomains

4 Financial Strategies

Improve ROA

Improve ROE

FY2017

ROE ≥ 5%
ROA ≥ 3%Returns to shareholders

Cash flow
fromoperatingactivities▶ Implement stable dividends(30% payout ratio)*Consider total return ratio in balance withgrowth investment

Investment in growth
Capital investment

Improve asset efficiency

Financial leverage control

FY2017

Net sales¥152.0Operating income ¥13.0

St re ng t h e n c ash ge ne r at ing c apacit y forsystematic and steady investment in growth;
regularly examine investment impact (PDCA)

Increase operating income▶ Improve CCC(cash conversion cycle)▶ Reduce working capital▶ Effectively utilize assets

Achieveand expand
stable profits

Increase shareholder value by strengthening cash
eration and effective cash use

Set, measure, and control KPIs (key performanceindicators) for each segment to improve ROA(PDCA)

Profit-to-sales ratio target(FY2017) ≥ 6％
▶ Improve gross profit▶ Enhance productivity▶ Cut costs

¥66.0
¥1.0

Procurementof other funds(Includingreview anddisposalof assets)▶ Renewal/maintenance of existing
facilities▶ Boost production capacity forcurrent products▶ New facilities for new products
Alliances▶ M&As, capital tie-up

Create new revenue sources

Muroran Plant Restructuring Project¥ 66.2¥(3.2)

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