JFE : Notice of Revised Financial Results Forecasts and Dividend Forecasts

August 12, 2021

Company Name:	JFE Holdings, Inc. (Code: 5411)
Representative:	Koji Kakigi, President and CEO
Contact:	Hiroki Watanabe, Manager, Public Relations Section
	Investor Relations and Corporate Communications Department
	Tel: [phone]

To whom it may concern:

Notice of Revised Financial Results Forecasts and Dividend Forecasts

JFE Holdings, Inc. announces herewith its revised consolidated financial results forecasts and dividend forecasts, which were initially announced on May 7, 2021 and have now been revised due to recent trends in business performance.

• Revised consolidated financial results forecasts Fiscal 2021 first half (April 1, 2021 to September 30, 2021)

			Profit	Profit		Basic
		Business	attributable
	Revenue		earnings
	profit*	before tax	to owners
	(million yen)		per share
		(million yen)	(million yen)	of parent
					(yen)
				(million yen)
Previous forecast (A)	-	-	-	-	-
New forecast (B)	1,970,000	195,000	190,000	130,000	225.78
Amount of change (B-A)	-	-	-	-
Change (%)	-	-	-	-
Reference:	1,492,294	(114,338)	(120,788)	(105,712)	(183.58)
FY2020 results

Fiscal 2021 full year (April 1, 2021 to March 31, 2022)

			Profit	Profit		Basic
		Business	attributable
	Revenue		earnings
	profit*	before tax	to owners
	(million yen)		per share
		(million yen)	(million yen)	of parent
					(yen)
				(million yen)
Previous forecast (A)	3,930,000	200,000	190,000	130,000	225.78
New forecast (B)	4,170,000	350,000	340,000	240,000	416.82
Amount of change (B-A)	240,000	150,000	150,000	110,000
Change (%)	6.1	75.0	78.9	84.6
Reference:	3,227,285	(12,911)	(4,930)	(21,868)	(37.98)
FY2020 results

• Profit before tax, excluding financial income and one-time items of a materially significant value, used as a benchmark indicator of the company's consolidated earnings.

JFE Holdings is now disclosing its consolidated financial results forecasts for the first half of FY2021 (fiscal year ending March 31, 2022), which had not been finalized when the company announced its FY2020 financial results earlier.

For the full year, business profit is now forecast to come to 350.0 billion yen, 150.0 billion yen higher than the previous forecast, due to improved profits mainly in the steel business.

Details for each business segment follow.

Steel business: In Japan, the company expects steel demand to continue to recover amid improved economic trends both in Japan and abroad. Demand from manufacturing industries will remain solid for the time being, driven predominantly by external demand. Overseas, risks posed by COVID-19 will remain prevalent in emerging markets, particularly India and ASEAN, but steel demand will continue to recover nevertheless, driven by solid domestic demand in China. In view of the current business environment, JFE Steel's non-consolidated crude steel output for the full fiscal year is forecast to be around 26.5 million tons, in line with the previous forecast. Segment profit* of 280.0 billion yen, roughly double the previous forecast, is due to increased raw materials costs being swiftly and steadily reflected in steel product prices, sales prices rising in step with increased market prices, particularly for exports, improved earnings among group companies both in Japan and abroad, and one-time contributions such as inventory valuation.

Engineering business: In this segment, which is expected to perform well in the environmental/ energy and infrastructure sectors, particularly in regard to steel structures, steady execution of project orders in these areas will contribute to segment profit of 25.0 billion yen, which is in line with the previous forecast.

Trading business: Segment profit is now forecast to reach 38.0 billion yen, up 11.0 billion yen from the previous forecast. This reflects revenue growth that is expected to be supported by recovered demand and increased market prices in Japan and abroad in the fiscal first half and also improved profits of steel sheet group companies in Japan and group companies overseas, particularly in the Americas.

• Segment profit is profit including financial profit and loss in business profit, used as a benchmark indicator of each segment's performance.

• Revised dividend forecast

Fiscal 2021 (April 1, 2021 to March 31, 2022)

		Dividend per share (yen)
	End of 1st	Interim	End of 3rd		Yearend		Annual
	quarter	quarter
Previous forecast	-	-	-	-		-
(May 7, 2021)
Revised forecast	-	60.00	-	-		-
Dividends in current fiscal year	-	-	-
Dividends in previous fiscal	-	0.00	-	10.00		10.00
year (ended March 31, 2021)

JFE Holdings previously announced that its dividend forecasts for FY2021 had yet to be determined, but in view of the company's now-released consolidated first-quarter financial results and first-half forecasts, the board of directors agreed to a FY2021 interim dividend of 60 yen per share when it met today, August 12, 2021.

JFE Holdings will decide its yearend dividend forecast at a later date based on financial performance trends.