Japan Steel Works : Business Results for the Fiscal Year 2021 (Ended March 31, 2022)

May 19th, 2022

Toshio Matsuo

Representative Director & President The Japan Steel Works, Ltd.

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

Discovery of Misconducted Quality Inspections at Japan Steel Works M&E, Inc.

1. Outline of the Misconducted Quality Inspection

[Products]

Rotor shaft forgings for steam turbine and generator, retaining ring forgings for generator [Misconduct]

Residual Stress Test and Hardness test: Change or deficiency of measurement position, Rewriting of measured value.

Ladle Analysis: Omitting and/or Rewriting Gas Analysis Value.

2. JSW's Response

Establishment of Special Investigating Committee

Member: Mr. Katsuyuki Miyakawa, Partner of Attorney of Tokyo‐Marunouchi Law Office Mr. Kaoru Takamatsu, Partner of Attorney of Hayabusa Asuka Law Offices

Purpose: Detailed fact‐finding and cause investigation, expansion of investigation targets and verification, advice for formulating recurrence prevention measures, investigation and verification of the quality assurance system of entire JSW, advice based on those results

Establishment: May 9th, 2022

Schedule: The survey will be conducted targeting the end of October 2022, and the results will be

disclosed. The progress will be disclosed in a timely and appropriate manner.

Fact‐finding and reporting to related companies

Report to our customers the facts and JSW's technical proposal on each project which misconduct is found, then discuss the countermeasure based on the technical evaluation performed by customers.

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Note;

The performance forecasts and other forward-looking statements included in this report are based on the information 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.

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INDEX

Discovery of Misconducted Quality Inspections

PART Ⅰ

Results for FY2021

1. Status of Orders Received, Net Sales and Profits
2. Analysis on Changes in Operating Income
3. Results by Segment
4. Industrial Machinery Products Business
5. Material and Engineering Business

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

PART Ⅱ

Forecast for FY2022

1. Forecasts for Orders, Net Sales and Profits
2. Analysis on Changes in Operating Income
3. Forecast by Segment
4. Industrial Machinery Products Business
5. Material and Engineering Business
6. Trends in Order Backlog and the Forecast

PART Ⅲ

Business Overview

1. Market Sentiment for the Main Product in the Industrial Machinery Products Business
2. Market Sentiment for the Main Product in the Material and Engineering Business
3. JGP2025︓ Progress in the Implementation of the Four Basic Policies
4. Prospects on Film and Sheet Manufacturing Equipment Business
5. Injection Molding Machines: New Production Base in Europe.
6. Current Status of Gallium Nitride (GaN) Business

Reference Materials (26〜31）︓

Introduction of JSWʼs New President /Composition of the Business Segments and Main Products / Trends in Net Sales, Operating Income and Profit / Trends in Major Assets and Cash Flows / Corporate Code of Behavior of JSW (revised on April 1, 2018)

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Results for FY2021

PART I

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