Overview of and Progress Made in theMedium-Term Management Plan (JGP2014)

Overview of the JGP2014 medium-term management plan
We aim to regain the growth path by building the Group’s products into the leading presence in theglobal market, and to marshal the total strength of all JSW Group companies – including new businessalliances – to expand our business operations into new growth markets and business fields.

1. Our vision for JSW
The vision we describe in JGP2014 for the JSW Group of the future is of becoming the No.1 global monozukuri(manufacturing) corporate group. Specifically, we will provide our customers with the world’s best products
and become a group fully capable of competing in the global marketplace. In addition, our goal is to be acorporate group with a stable earnings structure and strong financial position.

2. P
 rogress made up to FY2012
Net Sales
Steel and Energy Products BusinessIndustrial Machinery Products Business
Real Estate and Other Businesses

JGP2014(billions of yen)

250

212.9
200

221.3
2.4

97.6

150

228.0
2.4

2.0

134.0

113.9

220.6

2.2

225.0
200.0

240.0

250.0
2.0

2.0

2.0

2.6
128.0

138.0

110.0110.0

FY2013

FY2014

123.0

130.1
123.8

100112.9

50

105.0

92.0

88.2

FY2012FY201273.4

100.00FY2010FY2011(Previous estimate)(Actual)

FY2013(Estimate)

FY2012

Targets under JPG2014

We anticipate a decline in sales in fiscal 2013 due to the impact of the sluggish orders in fiscal 2012, but we areaimingto recover from this andachieve an increase in sales in fiscal 2014.
Steel and Energy Products Business
Operating income
Industrial Machinery Products Business
Real Estate and Other Businesses
Adjustments

Net income

JGP2014(billions of yen)

30

28.4

0.7
250.73.20.1

23.9

27.0

597.6

150

134.0

113.9

128.0

138.0

110.0

110.0

FY2013

FY2014

123.0

130.1
123.8

100112.9

50

105.0

92.0

88.2

FY2012FY2012

100.0

Overview of and Progress Made in the Medium-Term Management Plan (JGP2014)
73.4

0FY2010FY2011(Previous estimate)

FY2013(Actual)

FY2012(Estimate)

Targets under JPG2014

Operating Income and Net Income
Steel and Energy Products BusinessIndustrial Machinery Products Business
Real Estate and Other Businesses
Adjustments

Operating income
Net income

JGP2014(billions of yen)

30

28.4

0.7
25

27.0

0.7

3.2

23.9

0.1
0.720

16.2

0.7

16.5
15

11.5

0.6

16.0

0.8

12.5

25.0
10

16.6

16.7

15.4

0.7

15.2

1.0

8.5

12.2
0

0.8
-0.5

-0.8

-0.5

-0.4

-3.0

12.0
9.0

5.0

11.5

16.0

13.2

12.6

8.2

7.5
5

20.0

11.0
7.0
3.2
-1.3

-0.9

-0.9

FY2013

FY2014-1.7-5FY2010FY2011FY2012(Previous estimate)

FY2012(Actual)

FY2013(Estimate)

FY2012

Targets under JPG2014

We are currently working to secure orders in fiscal 2013 toward increasing income from fiscal 2014.

3. Measures to achieve an increase in both sales and income in FY2014
Basic management policy for JGP2014• Grow our products into the global market leaders• Expand business operations into growth markets and growth fields• Create global network of monozukuri alliances• Strengthen business base

Steel and Energy Products Business
1. Expand orders▷ Ascertain the point that the slumping demand in the electric power and nuclear power fields will change
direction▷ Strengthen product competitiveness (QCD)▷ Promote product development (in new fields and new materials)

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2. Strengthen our corporate structure▷ Improve fixed costs· Optimize fixed assets (retire equipment)· Mobilize personnel (transfer personnel to the Industrial Machinery Products Business)

Industrial Machinery Products Business
1. Expand orders▷ Aim to develop globally by leveraging our strength as a comprehensive plastics machinery manufacturer▷ Strengthen product competitiveness (QCD)▷ Expand our business scope through receiving entire systems and full line-up orders
2. Increase productivity and production capacity· Improve productivity at plants, enhance collaboration within the JSW Group· Mobilize personnel (reinforce personnel by transfers from the Steel and Energy Products Business)
By steadily implementing the above-described measures, we expect to increase order volume.
Steel and Energy Products BusinessIndustrial Machinery Products Business
FY2013 order (Estimate)+¥9,700 million+¥15,400 million¥210,000 million

Also, as we are able to lower the break-even point, we expect to record an increase in both sales and income
in fiscal 2014.

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