Securities Code：5411

JFE Group

Seventh Medium-Term

Business Plan

(FY2021-2024)

May 7, 2021

JFE Holdings, Inc.

A table of contents

  • Review of Sixth Medium-Term Business Plan
  • Business environment recognition
  • Mid/long-termdirections

JFE's mission（Environmental and Social sustainability, Economic sustainability）

  • Economic & Social Sustainability（helping to solve

critical issues）

  • Economic Sustainability（stable earnings power）
  • Initiatives of operating companies

（Steel Business, Engineering Business, Trading Business）

    • Group initiatives：Digital transformation strategy
  • Balance Financial Soundness with Effective Investment
  • Main Financial Data and Performance &

Profitability Targets

2

JFE-HD

Review of Sixth Medium-Term Business Plan

Financial results from FY2018 to FY2020 were significantly underachieved to the original 6th mid-term plan targets amid the significant loss resulting from trade friction between the US and China and COVID-19 pandemic from FY2019.

(billion yen)

FY2018

FY2019

FY2020

6th mid-term

business plan

Business Profit

232.0

37.8

(12.9)

290.0/year

Segment Profit

Steel Business

161.3

(8.7)

(65.4)

220.0/year

Engineering Business

20.1

23.1

24.0

30.0/year

Trading Business

35.7

27.0

20.0

35.0/year

On the other hand, we promoted following initiatives to establish a foundation for the sustainable growth.

JFE Group

Announced the individual target of the reduction of CO₂ emissions reduction

Proactively promoted Digital Transformation

JFE Steel

JFE Engineering

JFE Shoji

Reinforced manufacturing base

Expanded O&M business

Strengthened electrical steel

processing base

Decided structural reform etc.

Executed M&A etc.

Expanded supply chain

management etc.

3

JFE-HD

Business environment during 7th mid-term business plan

Rapid and extensive changein social and economic conditions is surrounding JFE

Intensified global competition

Increasing economic uncertainty

amid the ascendency of China

due to US-China conflict

Increasing geopolitical risk

Decreasing domestic demand

amid declining population

Necessity to address climate

Emergence of innovative

change such as carbon neutrality

new digital technologies

Spread of COVID-19

JFE aims to rise to a new level by taking bold steps to establish

a foundation for sustained, long-term growth, signaling the beginning

of the most transformative period in the company's history.

4

Mid/long-term directions

JFE-HD

Biggest transformation in company's history aimed at achieving global success

JFE's corporate vision

Contributing to society with the world's most innovative technology

JFE's mission

To be essential to society's sustainable development

and to create safe, comfortable lives for people everywhere

Environmental & Social

Economic sustainability

sustainability

（stable earnings power）

（helping to solve critical issues）

Ensuring environmental & social sustainability and establishing

economic sustainability will enable to ensure the resiliency of JFE's operational

foundations and allow the company to achieve sustainable growth

and increased value over the mid/long-term.

5

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JFE Holdings Inc. published this content on 07 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2021 07:02:02 UTC.