Message from the President

Overview of Fiscal 2014

manufacturers in emerging nations, along with adelayed recovery in the market for nuclear power

Business performance

products.
Under these circumstances, the Group02

In fiscal 2014, ended March 31, 2015, the world

advanced its business activities with the aims of

economy overall continued on a moderate recovery.

“improving profits and efficiency while pursuing

In Asia, there were signs of an economic slowdown inrevenue scale” and “enhancing asset efficiency andChina as well as in some other emerging nations.

profitability.” For the year, total orders amounted toMeanwhile, the U.S. economy recovered modestly¥205,906 million (US$1,713 million), up 10.4% fromthanks to healthy personal consumption, and thethe previous fiscal year. This improvement was due

European economy continued showing indications

to increased orders generated by both the Steel andof a turnaround. The Japanese economy as well

Energ y Produc t s Business and the Industrial

recovered moderately on the back of higher

Machinery Products Business segments. Net sales

cor p or ate ear ning s , couple d with improve drose 3.2%, to ¥194,674 million (US$1,619 million),

employment and worker income conditions, despite

owing to higher sales in the Industrial Machinery

signs of weak personal consumption owing to aProducts Business. Operating income declined 7.3%,

pullback in demand in the wake of the consumption

to ¥8,217 million (US$68 million). However, wetax hike.

reported a net loss of ¥3,740 million (US$31 million),

The operating environment for the JSW

compared with net income of ¥5,527 million (US$45Group remained challenging. Despite improvingmillion) in the previous fiscal year. This was due toexport conditions thanks to yen depreciation, as wellprovision for loss on wind power business, booked

as an expanding market for molding machiner y

as an extraordinary loss.

related to automobiles and IT equipment, the Group

Looking ahead, the world economy is

faced intensifying global competition driven by

expected to recover moderately, driven by the U.S.

Message from the President

and other industrialized economies, and theJapanese economy is also forecast to continue its
modest recovery. However, the economies of Chinaand emerging nations, as well as Europe, have
unstable element s, including downside risk,
geopolitical risk, and the effects of low crude oilprices. In summary, therefore, the economic outlook
remains uncertain.
Facing these challenges, the JSW Group has
formulated a new medium-term management plan,
entitled JGP2017, covering the three-year period
from April 2015 to March 2018. Under the plan, wewill advance our business activities according tothree basic policies: “Increase earnings power ofexisting businesses,” “Foster and swiftly mobilize
new products and businesses,” and “Reinforce
Group management and promote alliances.”
For fiscal 2015, the first year of the plan, ourconsolidated forecasts are: orders of ¥210.0 billion

June 2015(US$1,747 million), net sales of ¥210.0 billion(US$1,747 million), operating income of ¥10.0 billion(US$83 million) and net income attributable toowners of parent of ¥6.7 billion (US$55 million).

Ikuo Sato

Representative Director & President

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