Message from the President

Naotaka Miyauchi
Representative Director & President

Overview of Fiscal 2017higher resource prices and an expansion in exports. The

Business performance

to an improvement in the employment situation andJapanese economy also recovered moderately thanks
growth in capital investment and exports.

02

In fiscal 2017, ended March 31, 2018, overseas econo-

With respect to the JSW Group’s operating environ-mies remained on a mild recovery path overall. This wasment, the Industrial Machinery Products Business seg-in part because economies in the United States, Europe,

ment performed well for the most part due to growing

and other industrialized countries as well as China con-demand for such plastic products for automobiles astinued to recover underpinned by strong consumer

materials for automotive lithium-ion batteries. However,

spending and an expansion in exports while economies

conditions remained difficult for the Steel and Energy

in emerging nations also turned around on the back ofProducts Business segment, reflecting a prolonged

M essage f rom th e Pre sid e nt

slump in demand for products used in thermal power

European, and other industrialized economies. In Japan,and nuclear power plants.

we expect the economy to remain on a moderate recov-

Under these conditions, the JSW Group promoted

ery path as well. On the other hand, uncertainties

its business activities in accordance with the medi-

regarding intensifying trade frictions, the impact of

um-term management plan entitled JGP2017 duringexport-oriented companies due to respective countries’

fiscal 2017, the final year of the plan. Despite a harshtrade policies, and rising geopolitical risks in the Middle

business environment, the Steel and Energy ProductsEast and other regions require close monitoring.

Business segment cut back on invested capital andUnder these circumstances, the JSW Group’s Steelreviewed its business domain in order to make a strate-and Energy Products Business segment is expected togic move for a rebound. Meanwhile, the Industrial

continue facing a difficult business environment amid aMachinery Products Business segment accelerated its

prolonged delay in demand recovery for nuclear powerbusiness growth by expanding its business domain andproducts as well as stagnant demand in products fortaking other measures.

thermal power plants after the passage of the Paris

For fiscal 2017, total orders amounted to ¥236,050

Agreement. To achieve a return to profitability, we will

million (US$2,221 million), up 32.9% over the previous

continue rebuilding our business foundation and fos-year, due to increases in orders generated by both thetering new businesses. In the Industrial Machinery Prod-

Steel and Energy Products Business and Industrial

ucts Business segment, we will further expedite

Machinery Products Business segments. Net sales

business expansion not only by augmenting produc-edged up 0.2% to ¥212,957 million (US$2,004 million),tion capacity aimed at responding to robust demandwith higher sales in the Industrial Machinery Products

but also strengthening alliances and after-sales

Business segment offsetting lower sales in the Steelservices.

and Energy Products Business segment. With regard toOur consolidated forecasts for fiscal 2018 are: totalprofits, the JSW Group posted operating income oforders of ¥230.0 billion (US$2,164 million), net sales of¥21,318 million (US$200 million), up 72.8%; ordinary¥220.0 billion (US$2,070 million), operating income ofincome of ¥22,117 million (US$208 million), up 82.6%;¥22.0 billion (US$207 million), ordinary income of ¥22.0and profit attributable to owners of parent of ¥10,712

billion (US$207 million), and profit attributable to owners

million (US$100 million) (as opposed to a loss attribut-of parent of ¥15.0 billion (US$141 million).

able to owners of parent of ¥4,968 million in the previous fiscal year).

We look forward to the further guidance and supportof all shareholders.

Looking ahead, the world economy is expected tocontinue recovering moderately, driven by the U.S.,

June 201803