Our Philosophy

Corporate Philosophy of The Japan Steel Works,starting with Purpose

The Japan Steel Works, Ltd.

Establishment of Corporate Group Philosophy, Starting with Purpose

The Japan Steel Works began in 1907 with steelmaking.
What society was demanding at the time was superior steel.
At the time when Japan was striving to improve its industrial technology to catch up withEurope and the United States, steel was a universal value indispensable to the nation.
We will soon celebrate 120 years since our founding. Values that everyone thought wereunchanging around that time have changed dramatically over the Meiji, Taisho, Showa,Heisei, and Reiwa eras.
With the recent importance placed on the value of natural capital, lighter weight and low
environmental impact materials are required to mitigate climate change risks.
After World War II, we focused on the lightweight material plastic earlier than any othercompany, and introduced various manufacturing equipment for plastics to the world.
Marine pollution caused by waste plastics has now become a major social problem, and a
global challenge is the realization of a resource-recycling society where waste plastics canbe used to solve this issue.
Furthermore, the world now needs new materials that are lighter, highly functional, andmore energy-efficient than ever before to achieve carbon neutrality.
JSW Group will make the world more sustainable and prosperous by developing andimplementing industrial machinery and new materials that solve social issues with thepower of Material Revolution.

Toshio Matsuo

Representative Director & President© THE JAPAN STEEL WORKS, LTD. All Rights Reserved.

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Philosophy StructureGroup
PurposeWhat is the JSW Group’s value?

VisionWhat will JSW Group aim for?

Value Creation Process
How can JSW provide value to realize the Vision?

© THE JAPAN STEEL WORKS, LTD. All Rights Reserved.

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JSW Group Purpose

Material Revolution,
making the world sustainable and prosperous.

© THE JAPAN STEEL WORKS, LTD. All Rights Reserved.

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JSW Group Purpose →Back to Where JSW Group Started▷ Innovation in Steel

Steel plays a role in supporting social
infrastructures around the world by responding
to the various needs required throughcontinuous technological development. For
example, superior steel components, equippedwith high reliability and excellent materialproperties, are used in power plants.

▷ Innovation in Plastics

After World War II, we focused on thelightweight material plastic earlier than any
other company, and have been developing andimplementing various-purposes plastic
processing machinery, which is expanding
dramatically, contributing to weight reduction ofcomponents and energy conservation.

Recent Initiatives

Material Revolution,
making the world sustainable and prosperous.
JSW Group has been continuously striving
for material innovation and solving social issues.
We will hone our material innovation technology
even further and continue to be a provider ofsolutions to social issues.

© THE JAPAN STEEL WORKS, LTD. All Rights Reserved.

In recent years, we have been working on
the improvement of mass production
technology for gallium nitride (GaN) crystals,
viewed as the next-generation
semiconductor material, as well as thedevelopment of various bonded substrates.
By supporting the social implementation ofthese crystal materials and variouselements, we will contribute to the realizationof a super-smart society.

5JSW Group Vision

What will JSW Group aim for?

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

© THE JAPAN STEEL WORKS, LTD. All Rights Reserved.

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JSW Group Vision →Industrial Machinery Products
Needs of Society
Marine pollution caused by waste plastics
has become a major social problem, anda global challenge is the realization of a
resource-recycling society where waste
plastics can be used.
The mobility field, which is undergoing amajor shift in its business model toward acarbon-neutral society, including
reduction of CO2 emissions, requires theuse of lightweight materials leading toimproved fuel efficiency.
We have great expectations for the next
generation of crystals as materialsbecause everything around us will beconnected to the network in a supersmart society where the real world andvirtual space are merging together. Assuch, creating new power semiconductormaterials that simultaneously satisfy
high-speed, large-capacity
communications and energy
conservation must be essential.

JSW Group Vision
Benefiting all stakeholders bydeveloping and implementing industrial
machinery and new materials that solve
social issues.
JSW Group will continue to meet theneeds of society by using Material
Innovation technology.

© THE JAPAN STEEL WORKS, LTD. All Rights Reserved.

We will supply the world with equipment for
manufacturing products made from waste
plastics based on our established recycling
technology, leveraging our knowledge ofplastics cultivated up until now.
In addition to the magnesium injection
molding machine, which has already beensuccessfully put into practical use, globally
we will develop and provide industrial
machinery for social implementation ofenvironmental-friendly, lightweightmaterials, such as cellulose nanofiber andplastics reinforced with carbon fiber.

Materials
We make use of the technology tomanufacture various crystals, including
quartz crystals. We develop mass
production technology for gallium nitride
crystals, which are expected to be usedas materials for laser diodes, highfrequency devices, and high-voltage
power semiconductors, as well asmaterials for various bonded substrates.
By doing so, we will support the social
implementation of various energyefficient elements.

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JSW Group Value Creation Process

JSW Group Core Competence
Melting, Mixing, and Solidifying
Melting raw materials in an equipment
Mixing them evenly
Solidifying them into the shape needed

Machine Element and Precision Control
Technology
Molded products

Raw materials

Precision ControlTechnologyCrystal

EXAMPLE: Door mirrors(automobiles)

Plastic pellet

Artificial crystals

MachineElementTechnology
Rawmaterials
Precision
ControlTechnologyMeltScrew

Raw material

MoldHeaterRotator
Machine Element
Technology

Melting raw materials in a container
Solidifying them into desired quality crystals
EXAMPLE: Crystal manufacturing

EXAMPLE: Injection molding machines

Precision Control Technology

Machine Element and Precision Control

Mix

Solidify

BarrelDevelopingphase

Rawmaterial
phase

Solidify
Precision Control
TechnologyMelt

Lasca

JSW Group will further refine its core competence, develop industrial machinery and new materials that solve social issues,and supply them to the world, thereby simultaneously creating social value and enhancing sustainable corporate value.
© THE JAPAN STEEL WORKS, LTD. All Rights Reserved.

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JSW Group Value Creation Process →Purpose

CapitalMaterial Revolution,

making the world sustainable and prosperous.

Business Model

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

Outputs

Machine Element Technology
Precision Control Technology

Intellectual capital

Natural capitalSocial Environment

Materiality

Creating value and solving social issues throughJSW Group’s businesses・ Realization of a plastic resource-recycling society
・ Contribution to a low-carbon society
・ Contribution to a super-smart society
Bolstering JSW Group’s management foundation
for sustainable growth・ Human capital improvement and diversity & inclusion
・ Investment in the future with innovation management
・ Governance reinforcement of JSW Group
Solving the problem of waste plastics(realizing a circular economy)

Carbon neutrality in Japan by 2050

© THE JAPAN STEEL WORKS, LTD. All Rights Reserved.

Customers

Plastics
Machinery

Melting, Mixing,and Solidifying

Manufactured capitalSocial andrelationship capital

OutcomesIndustrial Machinery
Products and New
Materials that Solve
Social Issues

Financial capital

Human capital

VisionAdvances in digitaltransformation, AI and IoT

Affluent society

Employees

Injection
Molding
Machines

Businesspartners

OtherMachinery

Shareholders
andinvestors

Material andEngineering
Services

Localcommunities

New
Businesses

Sustainable society(Solving social issues such as health,medical care, food, energy, etc.)

Climate change mitigation

Creation ofsocial value

Sustainableenhancementof corporate value

Globalenvironment

Declining birthrate and aging populations
in developed economies

Worldwide population growth9© THE JAPAN STEEL WORKS, LTD. All Rights Reserved.