Progress of JGP2017 (JSW GROUP GROWTH PLAN FY2015-2017)
Co rporate Vision“Advancing toward Top Global & Niche Corporate Group”
Aiming to achieve top share at key points in customer value chainsB a s i c Po l i c i e s

N u m e r i c a l Targ e t sPolicy 1

Renewed challenge:
Net sales of ¥250 billion in FY 2020

Increase profitability of existingbusinesses• Pursue product & service differentiation• Strengthen total-cost competitiveness• Develop service & solution businesses• Reinforce initiatives in growth markets

More than(Billions of yen)More thanNet Sales¥250.0¥220.0

Policy 2¥194.6

Foster new products & businesses
and make them competitive assoon as possible

Operating income

Operating income

Operating income¥7.5≧ ¥13.0≧ ¥20.0

ROAROA

≧ 3%

≧ 4%

ROE

ROE

≧ 8%

≧ 10%

FY2017

FY2020• Promote businesses based oncore management resources• Optimize timeframe and systems forpromoting new products & businesses

Policy 3
Reinforce Group management
and promote alliances
FY2014* The ROE target has been revised upwards.

Strict management control based on Action Plan (implement PDCA)
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PROGRESS OF JGP2017

Business Strate gies
Steel and Energy Products Segment

Defensive management
Achieve steady growth and prepare for renewed growth after JGP2017

Reduce invested capital• Rationalize facilities• Reallocate personnel

Review business domains• Promote cost-reduction measures• Expand new products• Strengthen “profitable products”• Secure volume of “operable products” • Review unprofitable businesses(Billions of yen)

FY2015(Actual)

FY2016(Actual)

FY2017(Plan)FY2017(Forecast)

Net Sales

Net Sales

Net Sales

Net Sales

¥74.8

¥51.2

≧ ¥60.0≧ ¥45.2

Operating Income

Operating Income

Operating Income

Operating Income

¥0.6

−¥2.7

≧ ¥0

−¥1.1

FY2020Businessirestructuring

Industrial Machinery Products Segment

Offensive management
Identify growth opportunities and accelerate business expansion

Pursue strategic investments• Reinforce production capacity at
Hiroshima and Yokohama Plants

Expand business domains• Reinforce personnel• Promote strategic alliances• Expand sales of J-ADS series• Strengthen service businesses• Expand thin-film coating business• Acquired South Korea’s SM PLATEK• Acquired “simultaneous biaxial stretchingmachine business” for film and sheet
manufacturing equipment(Billions of yen)

FY2015(Actual)

FY2016(Actual)

FY2017(Plan)FY2017(Forecast)

Net Sales

Net Sales

Net Sales

Net Sales¥144.3¥159.3≧ ¥158.0¥158.0Operating Income

Operating Income

Operating Income

Operating Income

¥12.3

¥15.1

≧ ¥14.0¥15.0

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JGP2017: Basic Strategies

Foster new produc ts and businesses andmake them competitive as soon as possible

New fields and product groups of JSW GroupNEW ENERGYTELECOMMUNICATION,FPD, SENSOR

Low-pressure hydrogenstorage tank

Laser annealing
equipment

High-pressure hydrogenstorage

Equipment applied laser
technology

Hydrogen station

Fine foam injection molding
machines

Manufacturing equipment for
gallium nitride crystals

Thin-film deposition equipment for flat panel display

Film processing
equipment

Crystal device

AUTOMOBILE

Rubber manufacturing
equipment

CFRP processing
equipment

New defense systems

Aircraft components

DEFENSE SYSTEMSAIRCRAFT FIELD

Developing operations in growth fields, primarily automotive,
making the most of unique techniques
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R e i n fo rce G ro u p
management and promote alliances
Seek maximum synergistic benefits

Foster new products
and businesses
and make themcompetitive as soon
as possible

Increase profitabilityof existing businesses

Continue andd strength
strengthen further

Expand and evolv
evolve further

Initiatives and Results from FY2015 to FY2016

Initiatives and Results from FY2015 to FY2016

Reinforce Group management

Promote alliances

Reallocation at Hiroshima Plant factory(commenced in FY2015 → completed in first half of FY2016)

Film and sheet equipment

Continued to press ahead with Muroran
Restructuring Project(improved production efficiency, etc.)

Compounding twin-screw extruders

Increased profitability at affiliates(strengthened and expanded subsidiaries for external sales)

Joint development of small machinery with Toyo Machinery &Metal Co., Ltd.
(started to be sold in October 2016)

Made Meiki Co., Ltd. a wholly-owned subsidiary
Strengthened corporate governance(formulated and executed policy; strengthened the management of affiliates)

Acquired simultaneous biaxial stretching technologies

Acquired South Korea’s SM PLATEK Co., Ltd.

Molding machinesLarge cast and forged steel products
Alliance with India’s LTSSHF
Joint venture with Brazil’s Gerdau(established in January 2017)

Reallocation at Hiroshima Plant factory and acquisition of the simultaneous biaxial stretching machine business have contributed greatly to theexpansion of our Industrial Machinery Products Business. At the same time, we are working to improve the profitability of affiliated companies tobolster consolidated revenue growth. Going forward, we will continue strengthening, expanding, and evolving these efforts to maximize synergies.

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