FY2023 / Business Results for the Fiscal Year 2023
(Ended March 31, 2024)

May 16, 2024
Toshio Matsuo
Representative Director & President
The Japan Steel Works, Ltd.
Material Revolution, making the world sustainable and prosperous.

1© The Japan Steel Works, Ltd. All Rights Reserved.

Note;The performance forecasts and other forward-looking statements included in this report are based on theinformation that was available to The Japan Steel Works, Ltd. (the “Company”) and certain assumptions
deemed to be reasonable at the time this report was prepared, and the actual results may differ significantly
from these forecasts due to a variety of reasons.

Material Revolution, making the world sustainable and prosperous.

2© The Japan Steel Works, Ltd. All Rights Reserved.

INDEXPART Ⅰ
Results for FY2023
05
06
07
08
09

Status of Orders Received, Sales and Profits
Analysis on Changes in Operating Income
Results by Segments
Industrial Machinery Products Business
Material and Engineering BusinessPART Ⅱ
Forecast for FY2024

11 Forecast for Orders Received, Sales and Profits
12 Analysis on Changes in Operating Income
13 Forecast by Segments
14 Industrial Machinery Products Business
15 Material and Engineering Business
16 Changes in Order Backlog and Forecast by
Segments
17 Status of Capital Investment, Depreciation, Cash
Flows, Financial Position and R&D Expenses

PART Ⅲ
Business Overview
19
20
21
22
23
24
25
28

Market Sentiment for the Main Product in the
Industrial Machinery Products Business
Market Sentiment for the Main Product in the
Material and Engineering Business
Plastic Production Machinery
Film and Sheet Manufacturing Equipment
Efforts to increase production capacity
Thermal and nuclear Power Products
Defense equipment
Dividend Policy of JGP2028 and the Results

Reference Materials：
Composition of the Business Segments and Major
Products / Trends in Net Sales, Operating Income andProfit / Trends in Main Assets and Cash Flows/Corporate philosophy, starting with purpose

Material Revolution, making the world sustainable and prosperous.

3© The Japan Steel Works, Ltd. All Rights Reserved.

[PART I]

Results for FY2023

Material Revolution, making the world sustainable and prosperous.

4© The Japan Steel Works, Ltd. All Rights Reserved.

Status of Orders Received, Sales and Profits
Orders received, sales and profits increased YoY.
Orders and sales hit record highs for the second consecutive year.
Results for FY2022

FY2023
Previous forecast(A)（Unit: Billion Yen）
Change from the Change from theprevious year previous forecast(as of Nov.16, 2023)

Results(C)-(A)(C)-(B)(C)(B)
Orders received

276.0

338.0

334.9

58.9

(3.1)

Net sales

238.7

280.0

252.5

13.8

(27.5)

Operating income

13.8

18.5

18.0

4.2

(0.5)

(%)

5.8%

6.6%

7.1%

Ordinary income

14.9

19.0

19.9

5.0

0.9

Profit

11.9

14.0

14.2

2.3

0.2

162.75190.26

194.02

31.27

3.76

58.0

58.0

59.0

1.0

1.0

Profit per share(Yen)
Divident per share(Yen)

Material Revolution, making the world sustainable and prosperous.

5© The Japan Steel Works, Ltd. All Rights Reserved.

Analysis on Changes in Operating Income
Operating income increased by 4.2-billion-yen with the increase of sales
and price improvement.

（Unit: Billion Yen）

+11.8

(2.9)
Machinery: (3.9)
Material： 1.0[(8.5)]
Machinery: 7.6
Material: 3.7
Others: 0.5

Variable Cost

(3.1)
Machinery: (2.4)
Material: (0.7)+0.2[(4.5)][+0.3]

Fixed Cost

13.8

Impact of Forex
Fluctuations

(1.8)
18.0
[(2.2)]

Unclassifiable
Expenses[+19.6]
Increase/Decreasein Production, Sales
and Prices

FY2022Average exchange rates for sales in USD

FY2022: JPY136/USD
FY2023: JPY145/USD*Values in the parentheses"[ ]" under each bar is previous forecast on Nov. 16, 2023.

Material Revolution, making the world sustainable and prosperous.

FY2023

6© The Japan Steel Works, Ltd. All Rights Reserved.

Results by Segments

Both segments increased in sales and profit YoY.
Material and engineering business has turned profitable.
Industrial Machinery（Unit: Billion Yen）

Results for FY2022

Previous forecast(A)(as of Nov.16, 2023)

Operating incom

233.1
202.9
18.9

(%)

9.3%

Orders received
Net sales

Change from the Change from theprevious year previous forecast

FY2023

(B)

284.0
231.0
22.0
9.5%

Results
(C)

277.4
208.3
20.4

(6.6)
(22.7)(1.6)（Unit: Billion Yen）

Results for FY2022(as of Nov.16, 2023)

Operating incom

41.1
33.9
(0.8)

(%)

(2.5%)

Change from the Change from theprevious year previous forecast

FY2023
Previous forecast(A)

Net sales

44.3
5.4
1.5

(C)-(B)

9.8%

Material and Engineering

Orders received(C)-(A)

(B)

51.0
46.0
2.3

5.0%

Material Revolution, making the world sustainable and prosperous.

Results
(C)

55.3
41.9
3.2

(C)-(A)

14.2
8.0
4.0

(C)-(B)

4.3
(4.1)
0.9

7.7%
7

© The Japan Steel Works, Ltd. All Rights Reserved.

Industrial Machinery Products Business
Sales increased YoY driven by plastic production and processing machinery.
Orders received increased YoY with strong growth in defense equipment andOthers.
Net Sales / Operating Income

Orders Received（Unit: Billion Yen）

（Unit: Billion Yen）
Results for
FY2022(A)

Change fromthe previous
year

FY2023
Previous
forecast

Results(B)(C)(as of Nov.16,
2023)(C)-(A)

Change fromthe previous
forecast

Results for
FY2022(C)-(B)(D)

FY2023
Previous
forecast

Results(E)(F)(as of Nov.16,
2023)

Change fromthe previous
year

Change fromthe previous
forecast(F)-(D)(F)-(E)

Plastic production andprocessing machinery

92.2

112.0

102.7

10.5

(9.3)

107.3

136.0

102.1

(5.2)

(33.9)

Molding machines

65.8

68.0

58.7

(7.1)

(9.3)

65.4

66.0

64.9

(0.5)

(1.1)

Defense equipment

23.8

24.0

24.1

0.3

0.1

36.1

53.0

70.5

34.4

17.5

Others

21.1

27.0

22.8

1.7

(4.2)

24.2

29.0

39.9

15.7

10.9

Total

202.9

231.0

208.3

5.4

(22.7)

233.1

284.0

277.4

44.3

(6.6)

18.9

22.0

20.4

1.5

(1.6)

Operating income※ The conventional “Others” is now divided into “Defense equipment” and “Others”.

Material Revolution, making the world sustainable and prosperous.

8© The Japan Steel Works, Ltd. All Rights Reserved.

Material and Engineering Business
Orders received, sales and profits increased YoY with strong growth in steel
forgings and plates.

Net Sales / Operating Income

Orders Received（Unit: Billion Yen）

（Unit: Billion Yen）
Results for
FY2022(A)

Steel forgings and plates

Change fromthe previous
year

FY2023
Previous
forecast

Results(B)(C)(as of Nov.16,
2023)(C)-(A)

Change fromthe previous
forecast(C)-(B)

Results for
FY2022(D)

FY2023
Previous
forecast

Results(E)(F)(as of Nov.16,
2023)

Change fromthe previous
year

Change fromthe previous
forecast(F)-(D)(F)-(E)

24.9

34.0

33.0

8.1

(1.0)

30.6

44.0

47.7

17.1

3.7

9.0

12.0

8.9

(0.1)

(3.1)

10.5

7.0

7.6

(2.9)

0.6

Total

33.9

46.0

41.9

8.0

(4.1)

41.1

51.0

55.3

14.2

4.3

Operating income

(0.8)

2.3

3.2

4.0

0.9

(Steel castings and forgings)

Engineering, etc.

Material Revolution, making the world sustainable and prosperous.

9© The Japan Steel Works, Ltd. All Rights Reserved.

[PART Ⅱ]

Forecast for FY2024

Material Revolution, making the world sustainable and prosperous.

10© The Japan Steel Works, Ltd. All Rights Reserved.

FY2024: Forecast for Orders Received, Sales and Profits
Orders received, net sales and profit, all are expected to increase YoY.
（Unit: Billion Yen）

Results for FY2023

Forecast for FY2024

Change from theprevious year

（A）

（B）

(B)-(A)

Orders received

334.9

375.0

40.1

Net sales

252.5

265.0

12.5

Operating income

18.0

20.0

2.0

(%)

7.1%

7.5%

Ordinary income

19.9

20.5

0.6

Profit

14.2

15.5

1.3

194.02210.61

16.59

59.0

74.0

15.0

Profit per share (yen)Divident per share(yen)

Material Revolution, making the world sustainable and prosperous.

11© The Japan Steel Works, Ltd. All Rights Reserved.

Analysis on Changes in Operating Income
Operating income will increase by 2.0-billion-yen with the increase inproduction & sales, and price improvement.
+12.3

Machinery: (3.7)
Material: (0.4)
Machinery: 6.4
Material: 5.8
Others: 0.1

Revision in cost allocation(4.1)

Machinery: (2.5)
Material: (0.1)（Unit: Billion Yen）

(7.8)

Variable Cost
Machinery: (6.1)
Material: (1.7)

+1.6
0.0

18.0
Increase/Decreasein Production,
Sales and Prices

Fixed cost

Impact of Forex
Fluctuations

20.0

Unclassifiable
Expenses

Average exchange rates for sales in USD

FY2023: JPY145/USD
FY2024: JPY140/USD

FY2024
Forecast

FY2023*Values in the parentheses "[ ]" under each bar are the previous forecasts.

Material Revolution, making the world sustainable and prosperous.

12© The Japan Steel Works, Ltd. All Rights Reserved.

FY2024: Forecast by Segments
Industrial Machinery: Orders received will increase YoY, while operating income will
be affected by the revision in cost allocation downward.
Material and Engineering: Increase in orders received and operating income fromthe previous forecast is expected.
Industrial Machinery（Unit: Billion Yen）

Results for FY2023

Forecast for FY2024

Change from theprevious year

（A）

（B）

(B)-(A)

Orders received
Net sales
Operating incom
(%)

277.4
208.3
20.4
9.8%

322.0
210.0
17.0
8.1%

Material and Engineering

Orders received
Net sales
Operating incom
(%)

44.6
1.7
(3.4)

（Unit: Billion Yen）

Results for FY2023

Forecast for FY2024

Change from theprevious year

（A）

（B）

(B)-(A)

55.3
41.9
3.2
7.7%

Material Revolution, making the world sustainable and prosperous.

49.5
51.5
6.9
13.4%

(5.8)
9.6
3.7

13

© The Japan Steel Works, Ltd. All Rights Reserved.

FY2024 Forecast: Industrial Machinery Products Business
Sales will increase driven by Others, while Plastic production & Processing
machinery decrease due to long lead time.
Orders received will continue to grow mainly for Defense equipment.
Net Sales / Operating Income

Orders Received（Unit: Billion Yen）

Results for
FY2023（A）
Plastic production andprocessing machinery

Change from

Forecast forthe previous
FY2024year（B）(B)-(A)（Unit: Billion Yen）

Results for
FY2023（C）

Change from

Forecast forthe previous
FY2024year（D）(D)-(C)

102.7

89.0

(13.7)

102.1

108.0

5.9

Molding machines

58.7

63.0

4.3

64.9

68.0

3.1

Defense equipment

24.1

29.0

4.9

70.5

113.0

42.5

Others

22.8

29.0

6.2

39.9

33.0

(6.9)

Total

208.3

210.0

1.7

277.4

322.0

44.6

20.4

17.0

(3.4)

Operating income

Material Revolution, making the world sustainable and prosperous.

14© The Japan Steel Works, Ltd. All Rights Reserved.

FY2024 Forecast: Material and Engineering Business
Sales will increase on the back of strong orders.
Orders received will remain at a high level thanks to strong market despitea decline in Nuclear against FY2023.
Orders Received

Net Sales / Operating Income（Unit: Billion Yen）

（Unit: Billion Yen）

Results for
FY2023（A）
Steel forgings and plates(Steel castings and forgings)

Engineering, etc.
Total

Operating income

Change from

Forecast forthe previous
FY2024year（B）(B)-(A)

Results for
FY2023（C）

Change from

Forecast forthe previous
FY2024year（D）(D)-(C)

33.0

42.2

9.2

47.7

39.5

(8.2)

8.9

9.3

0.4

7.6

10.0

2.4

41.9

51.5

9.6

55.3

49.5

(5.8)

3.2

6.9

3.7

Material Revolution, making the world sustainable and prosperous.

15© The Japan Steel Works, Ltd. All Rights Reserved.

Changes in Order Backlog and Forecast by Segments（Unit: Billion Yen）

Material Revolution, making the world sustainable and prosperous.

16© The Japan Steel Works, Ltd. All Rights Reserved.

FY2024: Status of Capital Investment, Depreciation, Cash Flows, Financial Position and R&D Expenses
Status of Capital Investment and Depreciation

Financial Position

Status of Cash Flows

Status of R&D Expenses

Material Revolution, making the world sustainable and prosperous.

（Unit: Billion Yen）

17

© The Japan Steel Works, Ltd. All Rights Reserved.

[PART Ⅲ]

Business Overview

Material Revolution, making the world sustainable and prosperous.

18© The Japan Steel Works, Ltd. All Rights Reserved.

Market Sentiment for the Main Product in the Industrial Machinery Products BusinessIndustrial Machinery
Products Business

Pelletizers

Businesssentiment（Comparison
with FY2023)

Economic conditions from the perspectives of orderacquisition Market condition continues strong in China and other regions.

Twin-screw extruders

 Demand for high performance engineering plastic is increasing.
 Investment for the development of next-gen plastic, chemical recycling areincreasing.

Film and sheet
manufacturing equipment

 For LiB separators, investments are starting in North America and Europe
to follow. Investment in China is getting slow, and the possibility ofschedule delays bears amid watching the results of the US presidential
election.
 Demand for other industrial application remains stalled but inquiries related
to electronic materials for power semiconductors and EV are strengthening.

After-sales services

 Expected to expand sales in India, the Middle East, etc., in addition to
China.

Plastic Molding machines Recovery in investment is expected to accompany the model change of
automobiles.
 Trend of switching from hydraulic to electric machines continues in
European market.

Magnesium molding
machines

 Increasing need for lightweight car bodies due to the electrification, and thetrend toward the use of magnesium components continues.

FPD equipment

 In addition to ELA systems for G8 display panels, application of laser
annealing systems in power semiconductor production equipment is likely.

Material Revolution, making the world sustainable and prosperous.

19© The Japan Steel Works, Ltd. All Rights Reserved.

Market Sentiment for the Main Product in the Material and Engineering Business

Material andEngineering BusinessBusinesssentiment（Comparison
with FY2023)

Economic conditions from the perspectivesof order acquisition

Steel Forgings andPlates Demand for large-sized Steel Forgings, such as for power productcontinues strong.
 Nuclear Power Plant Construction Plans taking shape, driven by
Europe .

Engineering, etc.

 Plant maintenance projects are expected.

Material Revolution, making the world sustainable and prosperous.

20© The Japan Steel Works, Ltd. All Rights Reserved.

Plastic Production Machinery
Strong performance on the back of increased demand for plastics; strengthening
production capacity to meet increased demand.
There has been no change in increasing global demandfor plastics in response to the growth of populationand economy.
In China, investments are continuing to enhancedomestic production of plastics. Also, in emerging
markets, including India and the Mid-East, demand forplastic is rising, spurred by economic growth, andthere have been efforts to shift to domestic productionof raw materials.
Greater demand is likely for POE (polyolefin
elastomers), which have superior corrosion resistance,
as a material for solar cell encapsulants. Due togreater adoption of renewable energy, orders received
for medium-sized to ultra-large twin screw extruders
are increasing.







(1,000 ton)

Plastic Production Machinery Sales Outlook（index:FY21=1.0）

Pelletizer

Twin Screw Extruder

2.4

1.7
1.0

FY21

FY22

FY23

FY24

FY25

FY26

FY27

FY28

forecast forecast forecast forecast forecast

POE global demand outlook

Solar cell structure and encapsulant films

4,000

Glass

3,000

Encapsulant
films

2,000
1,000
0

Cells
2022

2023

2024

2025

2026

2027

2028

forecast forecast forecast forecast forecast(Year)

Material Revolution, making the world sustainable and prosperous.

Back sheet

21© The Japan Steel Works, Ltd. All Rights Reserved.

Film and Sheet Manufacturing Equipment
Demand for EV batteries is expected to rise in the medium to long term, but iscurrently in adjustment phase.








Growth in EVs is currently in a correctional phase, but themedium to long-term growth trend is continuing. However,
the market is splitting into three district regions: theUnited States, Europe and China.
In China, competition among EV manufacturers is
intensifying, sparked partly by the economic slowdown
and excess supply. Even though EVs continue to accountfor a growing percentage of new car sales, newinvestments are at a standstill.
In the United States, efforts are underway to build supply
chains within the region not reliant on China. Meanwhile,the focus on the impact of the US presidential election is aconcern.
Sales of the Company’s production equipment for battery
separator films should be maintained at a certain level inthe future with capital investments continuing with an eye
to medium to long-term growth in EVs. For applications
beyond separators, such as the ones for industrial use,film and sheet equipment and after-sales services arebeing strengthened.

Trends in Sales of Film & Sheet Manufacturing Equipment(INDEX: FY21＝1.0)(Stated Policies Scenario)

China

FY22

FY23

FY24

FY25

FY26

FY27

FY28

forecast

forecast

forecast

forecast

forecast

Material Revolution, making the world sustainable and prosperous.

United States

Japan

India

Other

63.5

60.0

50.0

45.0

890%

40.0

28.0

680%
30.0

19.6

460%

300%
20.0

14.1
10.0

1.4
3.4

230%

19.1

300%

24.8

8.4
0.0

0.5

Europe(million vehicles)

1.4

1.0

FY21

Electric vehicle sales by region, 2030 and 2035

2023

2030

2035

forecast

forecast* The figures include PHEV as well as BEV.

Created by our company based on Global EV Outlook 2024, IEA

22© The Japan Steel Works, Ltd. All Rights Reserved.

Efforts to increase production capacity

Responding to brisk demand through scrap & build, lifting theratio of in-house production.
Investment progress at Hiroshima Plant and future outlook


There has been steady progress in terms of capital
investment at our Hiroshima Plant designed toboost plastic related machinery production
capacity and efficiency, and to improve our largesize machine assembly capabilities.

➢ Capital investment for assembly plants will run
their course with the completion of No. 10
assembly plant, which is currently underconstruction.



FY20232H

2H

1H

Completed on Oct. 12, 2023, Operation Started.

No.10
Assembly Shop

Construction, etc.

New
Machining Shop

Our aim is to improve parts processing capacity,
lift the percentage of in-house production to meetbrisk demand, and improve earnings.
By adopting solar PV equipment, CO2 emissions
and electricity costs are being reduced.

Material Revolution, making the world sustainable and prosperous.

2H

Planned to start operation in Jan 2025

Construction completion planned in Mar 2026

No.10 Assembly Shop
No.9 Assembly Shop

The first new construction in 80 years in Hiroshima
has commenced with a machine plant that will be
responsible for parts machining and processing.
The new plant is positioned as a model plant for
smart factories.
visualization of products, equipment, and worker
information to lift productivity by 30% without
increasing workforce.

1H

FY2025

No.9
Assembly Shop

➢ Installation of cutting-edge equipment to enable

FY2024Assembly
Shops

Machining Shops
Casting Shop
New Machining Shop23

© The Japan Steel Works, Ltd. All Rights Reserved.

Thermal and nuclear Power Products
Nuclear Power Policy Trends in Europe

In December 2023, a declaration was launched to triple nuclear
energy capacity from 2020 by 2050. 23 nations in total,
including Eastern European countries, signed the declaration.
Projects are progressing smoothly in France and the UK. Even
in Eastern Europe, momentum is building to adopt reactors of
the Western bloc nations.

Countries endorsing the Declarationon the Tripling of Nuclear Power

Coal-fired power generation is on the decline amid moves
for decarbonization. As an actual offset to this decline,
demand for natural gas-fired power generation is continuing,
including for GTCC (gas turbine combined cycle).
Amid improving efficiency of power generation equipment,
we are harnessing our strengths, including for large andheat resistant materials, and capturing demand.
Outlook for global installed power generation capacity
by power source～Stated Policies Scenario～

Nuclear power

5,000
Projects under construction

Natural gas

Oil

Coal

4,500

Projects in planning

GW = million kW

Strong demand for electric power products(turbine and generator components)

4,000

Coal and Oil is expected todecrease

3,500
3,000
2,500
2,000
1,500

Nuclear and Natural gass is
expected to increase

1,000
500
0

2022

2030

2040

2050

(Prepared by the Company from various sources.)

Material Revolution, making the world sustainable and prosperous.

24© The Japan Steel Works, Ltd. All Rights Reserved.

Defense equipment
Outline of defense equipment business：HistoryFounded in 1907 in Muroran, Hokkaido, for the domestic production of weapons. Established manufacturing
technology for high quality, large materials (steel) and produced various artillery and armor plates, etc.

Muroran Plant（1907）

High-quality steel manufacturing
and processing technology

Hiroshima Plant（1920）

Manufacturing technology forvarious machines

In 1920, the Hiroshima Plant was established. In addition to small- and medium-caliber artillery, it
manufactured and assembled various types of machinery.

Before the end of WWII, we manufactured artillery and other products as the largest civilian weapons manufacturer.
Contributed to Japan’s national defense by establishing and accumulating the technology necessary for artillery
production, including materials and machinery, and leveraging the strengths of each plant.

Material Revolution, making the world sustainable and prosperous.

25© The Japan Steel Works, Ltd. All Rights Reserved.

Defense equipment
Outline of defense equipment business：Postwar to PresentEven after the war, have made various artillery, missile launchers, and other products as the nation’s only artillery
manufacturer.
Using the Hiroshima Plant as a final assembly plant, supplying sophisticated defense equipment leveraging the Muroran
Plant’s materials development and manufacturing technology.

Production
Bases

Manufacturing defense equipment, with Hiroshima and
Muroran being the main production bases.
Other locations can also be used depending on circumstances.

Main
Products

Deliver defense equipment to the Ministry of
Defense and Japan Coast Guard.

Type19155mm Wheeled SPH

Hiroshima: Systems development, processing,and assembly technology

105mm Tank Gun(Type16 MCV)

120mm Tank Gun(Type10 MBT)

（Source: JGSDF website） （Source: JGSDF website）

Yokohama Plant

Meiki Plant

Maintenance business locations
for artillery and vehicles, etc.
(overhauls, repairs, etc.)

Muroran: Materials development andmanufacturing technology

62caliber 5-inch
naval Gun
(Source: JMSDF)

30mm
Automatic
CannonMissile Canisters(Photo: Type 12 SSM)

(Source: JGSDF website) In addition to the manufacture of defense equipment, the Hiroshima and Muroran plants also
provide maintenance business (overhauls, repairs) for various artillery and vehicles.
Material Revolution, making the world sustainable and prosperous.

26© The Japan Steel Works, Ltd. All Rights Reserved.

Defense equipment
Outline of defense equipment business： Recent Efforts
 Entered into production agreement for next-generation APC (Armored Personnel Carrier)- On 9 December 2022, Patria’s AMV was selected to replace Type-96
Wheeled APC (Japan Ministry of Defense)- JSW & Patria signed licensing agreement on August 31, 2023

- In February 2024, concluded the contract to deliver 26
AMVs.

⇒ Mass production and supply to commence after establishinga production system at Muroran.

Image of next-generation APC

Signed agreement with Patria group(August 31, 2023)(Source: Japan Ministry of Defense website) Supports development & prototypes for Future Equipment【Contracts Signed】-2022 Prototype of Future Railgun (1) : Approx. 6.5 billion yen
Miniaturization of power unit (1) : Approx. 3.7 billion yen-2023 Prototype of Future Railgun (2) : Approx 15.9 billion yen【Future Initiatives】
In FY2024, the budget for railgun prototype is 23.8 billion. Future
railgun project will continue for coming years.

⇒ Will respond to the project by leveraging our expertiseand technology.
Material Revolution, making the world sustainable and prosperous.

Prototype railgun(Source: Photo from Acquisition, Technology, andLogistics Agency website)）27© The Japan Steel Works, Ltd. All Rights Reserved.

Dividend Policy of JGP2028 and the Results

Dividend policy in the period of JGP2028
JGP2025

JGP2028

Paying dividends at a level that ensures
dividend on equity (DOE) is 2% or higher
while aiming for a consolidated dividend
payout ratio of 30% or more.

Paying dividends at a level that ensures
dividend on equity (DOE) is 2.5% or higher
while aiming for a consolidated dividend
payout ratio of 35% or more.

■Schematic of dividend policy
Dividends

Lower-limit dividend（DOE of 2.5％）

ProfitPerformance-based dividend（Payout ratio of 35％）

Results and forcast
FY2021

FY2022

FY2023

Forecast for
FY2024

Annual dividends
per share (Yen)

57.0

58.0

59.0

74.0

Dividends payout
ratio（Consolidated）

30.1%

35.6%

30.4%

35.1%

Material Revolution, making the world sustainable and prosperous.

28© The Japan Steel Works, Ltd. All Rights Reserved.

Reference Materials

Material Revolution, making the world sustainable and prosperous.

29© The Japan Steel Works, Ltd. All Rights Reserved.

Composition of Business Segments and Major Products
Business
Segments

Industrial Machinery Products Business

Organizations

Plastic Machinery B.D. / Injection Molding Machinery B.D.
/ Industrial Machinery B.D. / Ordnance Business H.Q.

Hiroshima

Yokohama

Material and Engineering BusinessJapan Steel Works M&E, Inc.

Nagoya(Meiki)

Other
Businesses
NewBusiness
Promotion
H.Q.

MuroranProduction
Bases

Plastic production and processing
machinery・Pelletizers
・Film and sheet
manufacturing equipment
・Twin-screw extruders
・After-sales services

Molding machines
・Plastic injection molding
machines
・Magnesium alloy injection
molding machines
・Blow molding machines
・After-sales services

・Rotor shafts・Parts for Nuclear Reactor ・Turbine casingsPressure Vessels
・Die steel& Steam Generators
・Steel rolls for steel mills

Clad steel products
・Clad steel plates

Products

Other machinery・Excimer laser annealing(ELA) systems
・Defense equipment
・Railway products・Hot press devices

Markets

Steel castings andforgings

Petrochemi
cals

Industrial
Machinery

New BusinessPhotonics
Composite materials
Metal materials

Engineering services

・Steel structure for plant and infrastructure
・Non-destructive inspection and analyticalinspection services
・Steel pressure vessels for hydrogen storage
and hydrogen storage tanks using hydrogen
absorbing alloys

・Laminators
・Deposition systems
・After-sales services

Automobiles

IT

DefenseMaterial Revolution, making the world sustainable and prosperous.

Electric Powerand SteelOil andNatural Gas

NaturalEnergyNew
Business

30© The Japan Steel Works, Ltd. All Rights Reserved.

Trends in Net Sales, Operating Income and Profit（Unit: Billion Yen)FY2018FY2019FY2020

FY2021

FY2022

FY2023

220.1

217.5

198.0

213.7

238.7

252.5

173.6

171.4

156.3

171.1

202.9

208.3

52.5

61.3

58.8

62.1

92.2

102.7

Molding machines

72.7

65.3

54.5

65.3

65.8

58.7

Defense equipment

‐

‐

-

-

23.8

24.1

Others

20.4

44.8

43.0

43.7

21.1

22.8

FPD equipment

16.4

‐

-

-

-

-

Consolidated subsidiaries, etc.

11.6

‐

-

-

-

-

Material and Engineering Business

41.2

42.8

38.5

40.0

33.9

41.9

Steel Forgings and Plates

-

19.6

19.9

25.4

24.9

33.0

Electric and nuclear power

12.5

-

‐

‐

-

-

Clad steel plates and pipes

13.0

12.8

10.5

6.0

-

-

-

10.4

8.1

8.6

9.0

8.9

Others

9.5

-

-

-

-

-

Consolidated subsidiaries, etc.

6.2

-

-

-

-

-

5.2

3.2

3.1

2.6

1.8

2.2

24.2

18.7

10.2

15.4

13.8

18.0

Industrial Machinery Products Business

23.5

19.2

13.9

17.7

18.9

20.4

Material and Engineering Business

2.6

2.7

1.8

1.3

(8)

3.2

Other Businesses

0.3

(0.4)

0.0

0.0

(4)

0.0

19.9

9.3

6.8

13.9

11.9

14.2

Net Sales
Industrial Machinery Products Business
Plastic production and processing
machineryEngineering, etc.

Other Businesses
Operating Income

Profit*Sub-segment changed in FY2020; Figures from FY2019 have been restated to reflect this change.
• Three companies (GM Engineering CO., Ltd, Nichiyu Machinery Co., Ltd and SM Platek Co., Ltd.), which had been treated as consolidate subsidiaries, were reclassified as the Plastic production and processing machinery.
• FPD equipment, Other products and Consolidated subsidiaries, etc. were reclassified as Other products in the Industrial Machinery Products Business.
• Pressure vessels for oil refineries out of steel castings and forgings in the Material and Engineering Business and wind power maintenance services out of the Other Business were reclassified as Engineering, etc. in the Material and Engineering Business.

Material Revolution, making the world sustainable and prosperous.

31© The Japan Steel Works, Ltd. All Rights Reserved.

Trends in Main Assets and Cash Flows（Unit: Billion Yen)FY2018FY2019FY2020

FY2021

FY2022

FY2023

Total Assets

305.5

297.1

316.2

339.7

348.3

366.7

Net Assets

129.8

132.4

141.9

151.0

160.6

178.6

1,746.91

1,778.94

1,908.76

2,031.29

2,162.18

2,404.83

Equity Ratio (%)

42.0

44.0

44.4

44.0

45.7

48.3

Return on Equity (%)

16.3

7.2

5.1

9.6

7.8

8.5

Operating Cash Flow

1.1

18.9

14.7

22.3

(0.9)

21.7

Investing Cash Flow

(1.3)

(13.1)

(3.2)

(2.9)

0.9

(6.8)

Financing Cash Flow

(3.7)

(6.1)

2.7

(2.8)

(20.1)(4.8)

Cash and Cash Equivalents at Endof the Period

73.8

74.4

88.7

105.7

86.4

96.9

Net Assets per Share (yen) ** Since FY2016, amounts are after
reserve-->reverse split of stocks

Material Revolution, making the world sustainable and prosperous.

32© The Japan Steel Works, Ltd. All Rights Reserved.

Corporate philosophy, starting with purpose

Group

PurposeWhat is the JSW Group’s value?

Material Revolution,

Making the world sustainable and prosperous.

VisionWhat will JSW Group aim for?

Benefiting all stakeholders by developing and implementing
industrial machinery and new materials that solve social issues.

Value Creation Process

How can JSW Group provide value to realize the Vision?

JSW Group Core Competence

Melting, Mixing, and Solidifying

Machine Element and Precision Control

JSW Group will further refine its core competence, develop industrial machineryand new materials that solve social issues, and supply them to the world, thereby
simultaneously creating social value and enhancing sustainable corporate value.

Material Revolution, making the world sustainable and prosperous.

33© The Japan Steel Works, Ltd. All Rights Reserved.

Material Revolution, making the world sustainable and prosperous.

34© The Japan Steel Works, Ltd. All Rights Reserved.