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JFE JFE Group Financial Results for First Quarter of Fiscal Year 2026 ending March 31 , 2027 August 5 , 2026 JFE Holdings , Inc. | Securities Code : 5411.T |
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2Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Table of Contents ４．Dividends １．Financial Highlights ２．Financial Results for First Quarter of Fiscal Year 2026 (April 1 to June 30, 2026) ３．Financial Forecasts for Fiscal Year 2026 (April 1, 2026 to March 31, 2027) Appendix (1) Data on “JFE Vision 2035” and “Eighth Medium-term Business Plan” Appendix (2) Financial Data, Profit/Loss Analysis Appendix (3) Business Environmental Indicators Appendix (4) Published Materials (Links) This presentation material is for the purpose of publicizing the status of our company's financial results for the first quarter of FY2026. It is not a disclosure material under the Financial Instruments and Exchange Act and does not guarantee the accuracy or completeness of the information. It does not constitute asolicitation to invest in securities in Japan, the United States or any other countries. The forecasts presented are based on information received at the time of the briefing and include uncertainties. Therefore, please refrain from making investment decisions based solely on this document. Our company shall not be liable for any damages arising as a result of the use of this document. ５．Topics
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3Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Financial Highlights
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4Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Financial Highlights 1Q results: Business profit of 32.3 billion yen (up 16.1 billion yen year -on-year); Profit attributable to owners of parent of 31.2 billion yen (up 24.1 billion yen year -on-year) 1Q financial results and financial forecast Business environment Dividends Regarding the full -year financial forecast, despite the impact of the situation in the Middle East, business profit and profit attributable to owners of parent are expected to remain in line with the previously announced forecast, driven by additional steel price increases and the profit contribution from our Indian operations. ROE is expected to be around 6%. The difficult situation caused by factors such as China’s overproduction and the protectionist policies of various countries continues. Although crude oil prices temporarily surged to levels exceeding $100 per barrel for WTI, they are currently hovering around $80 per barrel. In addition to the limited direct impact on sales and operations, the cost impact —primarily related to raw materials, fuel, energy, and logistics— has also narrowed from the assumptions made at the time of the previous announcement (an impact of 10.0 billion yen per month assuming WTI remained at $100 per barrel). JFE Group is now factoring in approximately 60.0 billion yen per year in cost impacts that were not included in the earnings forecast at the time of the previous announcement. The company is currently working to promptly pass on these cost impacts to sales prices. In line with the dividend policy set forth in the 8th Mid -term Business Plan, the annual dividend is projected to be 80 yen per share (including an interim dividend of 40 yen). Impact of the situation in the Middle East
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5Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Financial Highlights Change Apr-Jun FY2025 1Q vs Apr-Jun FY2026 Change from the previous forecast Results for 1Q of FY2026 Business profit [Excluding inventory valuation etc.] 32.3 [14.3] +16.1 [(30.9)] － Segment profit [Excluding inventory valuation etc.] 25.9 [7.9] +15.6 [(31.4)] － Change FY2025 vs FY2026 Change from the previous forecast Forecast of FY2026 Business profit [Excluding inventory valuation etc.] 215.0 [185.0] +79.7 [18.7] Segment profit [Excluding inventory valuation etc.] 175.0 [145.0] +64.5 [3.5] Profit attributable to owners of parent 150.0 +79.9 ROE Approx. 6% Approx. +3 percentage points Dividend 80yen (Interim dividend 40yen) ±0 yen Crude Steel Production (Standalone): Approx. 21.50 million mt* Exchange rate: Approx. ¥160/US$ Crude Steel Production (Standalone): 5.25 million mt* Exchange rate: ¥159.9/US$ As previously announced 8th Medium-term Business Plan （FY2027） Business profit 400.0 ROE 10% or more Dividend Dividend payout ratio of around 30%, with a minimum of 80yen "JFE Vision 2035" （FY2035） Business profit 700.0 (billions of yen, unless otherwise stated) *mt : metric tons(billions of yen, unless otherwise stated) *mt : metric tons
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6Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Financial Results for First Quarter of Fiscal Year 2026 (April 1 to June 30, 2026)
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7Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Financial Results for 1Q of Fiscal Year 2026 Business profit is profit before tax excluding financial income and one-time items of a materially significant value. Segment profit is profit including financial income in business profit. Business profit for 1Q of FY2026 was ¥32.3 bn. (increased by ¥16.1 bn. year -on-year) * Business profit (excluding inventory valuation etc.) for 1Q of FY2026 was ¥14.3 bn. (decreased by ¥ 30.9 bn. year -on-year) * Gain on sales of land （billions of yen） FY2025 Actual 1Q (Apr-Jun) FY2026 Actual 1Q (Apr-Jun) Change (FY2025 vs FY2026) (Apr-Jun) Revenue 1,115.3 1,161.1 +45.8 Business profit [Excluding inventory valuation etc.] 16.2 [45.2] 32.3 [14.3] +16.1 [(30.9)] Finance income/Costs (5.8) (6.3) (0.5) Segment profit [Excluding inventory valuation etc.] 10.3 [39.3] 25.9 [7.9] +15.6 [(31.4)] Exceptional items - 15.0 +15.0 Profit before tax 10.3 40.9 +30.6 Tax expense and Profit (loss) attributable to non-controlling interests (3.2) (9.7) (6.5) Profit attributable to owners of parent 7.1 31.2 +24.1 *
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8Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Financial Results for 1Q of Fiscal Year 2026 (by Segment) Business profit is profit before tax excluding financial income and one-time items of a materially significant value. Segment profit is profit including financial income in business profit. （billions of yen） FY2025 Actual 1Q (Apr-Jun) FY2026 Actual 1Q (Apr-Jun) Change (FY2025 vs FY2026) (Apr-Jun) Steel business 761.2 763.5 +2.3 Engineering business 135.3 147.3 +12.0 Trading business 338.7 380.6 +41.9 Adjustments (120.0) (130.4) (10.4) Revenue 1,115.3 1,161.1 +45.8 Business profit (A） [Excluding inventory valuation etc.] 16.2 [45.2] 32.3 [14.3] +16.1 [(30.9)] Finance income/Cost（B） (5.8) (6.3) (0.5) Steel business [Excluding inventory valuation etc.] (12.1) [16.9] 3.0 [(15.0)] +15.1 [(31.9)] Engineering business 5.7 8.9 +3.2 Trading business 12.6 11.3 (1.3) Adjustments 4.1 2.6 (1.5) Segment profit (A)+(B) [Excluding inventory valuation etc.] 10.3 [39.3] 25.9 [7.9] +15.6 [(31.4)]
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9Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel 1) Cost +7.0 - Operational improvement and other matters 2) Volume and mix ±0.0 - Crude Steel Production 5.28 million mt → 5.25 million mt 3) Spreads* (45.0) - Sluggish steel market conditions in domestic and overseas markets, surge in main raw materials prices - Rising costs due to the situation in the Middle East 4) Inventory valuation +47.0 - Inventory valuation +36.0 (-23.0→+13.0) - Carry over + 4.0 (- 1.0→ + 3.0) - Foreign exchange valuation + 7.0 (- 5.0→ + 2.0) 5) Others +6.1 - Group companies +6.0 (Domestic: +1.0, Overseas: +5.0 (India: +7.0)) JFE Steel Segment Profit Analysis (FY2025 1Q Actual vs FY2026 1Q Actual) Breakdown * Spreads including various prices (metals, energy, materials, logistics, labor costs, foreign exchange effects, etc.) Unit FY2025 1Q Actual FY2026 1Q Actual Crude Steel (Standalone) million mt 5.28 5.25 Shipment (Standalone) million mt 4.71 4.54 Average Sales Price 000 yen /mt 120.4 124.2 Exchange Rate ¥/US$ 145.3 159.9 (billions of yen) ） FY2025 1Q Actual FY2026 1Q Actual Change Segment Profit (12.1) 3.0 +15.1 ＊Excluding Inventory Valuation, etc. 16.9 (15.0) (31.9) Impact of the situation in the Middle East on Costs: Approx. -15.0 (Including the group companies)
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10Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Shoji JFE Engineering Order intake increased due to differences in the timing of large- scale project bookings in the carbon -neutral and core infrastructure sectors. Revenue and segment profit both reached record highs for a first quarter, supported by contributions from the offshore wind monopile business and other operations . JFE Engineering/JFE Shoji Segment Profit Analysis (FY2025 1Q vs FY2026 1Q) JFE Engineering （billions of yen） FY2025 1Q Actual FY2026 1Q Actual Change Orders 119.2 177.6 +58.4 Revenue 135.3 147.3 +12.0 Segment profit 5.7 8.9 +3.2 (billions of yen) FY2025 1Q Actual FY2026 1Q Actual Change Revenue 338.7 380.6 +41.9 Segment profit 12.6 11.3 (1.3) JFE Shoji Although profit in the domestic segment increased due to factors such as rising steel market, total segment profit was 11.3 billion yen (down 1.3 billion yen year -on-year) due to a decline in profit from the building materials and electrical steel businesses in North America .
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11Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Financial Forecasts for Fiscal Year 2026 (April 1, 2026 to March 31, 2027)
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12Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. FY2025 Actual FY2026 Forecast (Previous) FY2026 Forecast (Updated) Change (FY2025 vs FY2026) Change (Previous vs Updated) (billions of yen) 1H Full year Full year 1H Full year Full year Full year Revenue 2,232.6 4,539.2 4,800.0 2,380.0 4,850.0 +310.8 +50.0 Business Profit [Excluding inventory valuation etc.] 45.7 [93.7] 135.3 [166.3] 215.0 [185.0] 90.0 [60.0] 215.0 [185.0] +79.7 [+18.7] 0 Finance income/Costs (11.5) (24.7) (40.0) (20.0) (40.0) (15.3) 0 Segment profit [Excluding inventory valuation etc.] 34.1 [82.1] 110.5 [141.5] 175.0 [145.0] 70.0 [40.0] 175.0 [145.0] +64.5 [+3.5] 0 Exceptional items 0 (23.1) 15.0 15.0* 15.0* +38.1 0 Profit before tax 34.1 87.4 190.0 85.0 190.0 +102.6 0 Tax expense and Profit (loss) attributable to non-controlling interests (7.4) (17.2) (40.0) (20.0) (40.0) (22.8) 0 Profit attributable to owners of parent 26.6 70.1 150.0 65.0 150.0 +79.9 0 Financial Forecast for Fiscal Year 2026 Full-year business profit is expected to be ¥215.0 bn. ( as previously announced, increased by ¥79.7 bn. year -on-year) Full-year profit attributable to owners of parent is expected to be ¥150.0 bn. (as previously announced, increased by ¥79.9 bn. year -on-year) Business profit is profit before tax excluding financial income and one-time items of a materially significant value. Segment profit is profit including financial income in business profit. * gain on sale of land(FY2026 Q1)
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13Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. FY2025 Actual FY2026 Forecast (Previous) FY2026 Forecast(Updated) Change (FY2025 vs FY2026) Change (Previous vs Updated) （billions of yen） 1H Full year Full year 1H Full year Full year Full year Steel Business 1,537.4 3,088.4 3,280.0 1,640.0 3,350.0 +261.6 +70.0 Engineering Business 287.0 599.7 620.0 290.0 620.0 +20.3 0 Trading Business 647.5 1,333.0 1,400.0 700.0 1,400.0 +67.0 0 Adjustments (239.4) (481.9) (500.0) (250.0) (520.0) (38.1) (20.0) Revenue 2,232.6 4,539.2 4,800.0 2,380.0 4,850.0 +310.8 +50.0 Business Profit (A） [Excluding Inventory Valuation etc.] 45.7 [93.7] 135.3 [166.3] 215.0 [185.0] 90.0 [60.0] 215.0 [185.0] +79.7 [+18.7] 0 Finance Income/Cost（B） (11.5) (24.7) (40.0) (20.0) (40.0) (15.3) 0 Steel Business [Excluding Inventory Valuation etc.] (5.3) [42.7] 38.0 [69.0] 100.0 [70.0] 30.0 [0] 100.0 [70.0] +62.0 [+1.0] 0 Engineering Business 12.6 23.9 25.0 13.0 25.0 +1.1 0 Trading Business 21.9 40.2 45.0 22.5 45.0 +4.8 0 Adjustments 4.8 8.4 5.0 4.5 5.0 (3.4) 0 Segment Profit (A)+(B) [Excluding Inventory Valuation etc.] 34.1 [82.1] 110.5 [141.5] 175.0 [145.0] 70.0 [40.0] 175.0 [145.0] +64.5 [+3.5] 0 Financial Forecast for Fiscal Year 2026 (by Segment) Business profit is profit before tax excluding financial income and one-time items of a materially significant value. Segment profit is profit including financial income in business profit.
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14Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. 4.5x 4.8x 3.0 5.0 0 200 400 600 800 1,000 1,200 FY2024 FY2025 FY2026 (1H Forecast) Key Financial Indicators (Debt/EBITDA Ratio) 392.9 460.0 (1H x 2) The Debt/EBITDA multiple in FY2026 (first -half forecast) is expected to be 4.8x, reflecting factors such as the second investment in JJSL (equivalent to a 25% stake). The Debt/EBITDA multiple is expected to improve to around 4.0x by the end of FY2026 , reflecting improved earnings in the second half driven by steel price increases, accelerated asset sales, and a review of investment plans. ■EBITDA (left axis) Trend in Debt/EBITDA multiple ●Debt/EBITDA multiple(billions of yen) EBITDA＝Business profit＋Depreciation and Amortization Debt/EBITDA multiple＝Interest-bearing debt outstanding/EBITDA * For debt having a capital component, a portion of its issue price is deemed to be capital, as assessed by rating agencies . Interest-bearing debt outstanding ¥1,766.4 billion ¥1959.3 billion ¥2,200.0 billion D/E ratio (*) 54.3% 59.4% 66.6% 409.5 Financial Targets (FY2027) - Debt/EBITDA about 3X - D/E Ratio about 60% 4.8x End of FY2026 Approx. 4x
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15Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel Financial Forecast for Fiscal Year 2026
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16Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel Although there are variations by sector, overall conditions are expected to remain flat compared to FY2025, with no significant change from the previous announcement. The biggest concern is the situation in the Middle East, requiring close monitoring due to potential impacts on costs and material procurement. Outlook for Domestic Auto Production(annual basis) Business Environment (Domestic) 810 868 847 848 500 800 FY2022 FY2023 FY2024 FY2025 FY2026 Unit: 10,000 Automotive - U.S. tariff policy continues to pose a risk to vehicles bound for export. While the impact on exports of finished vehicles and their production has been limited thus far, continued monitoring is necessary. - The expected level of domestic finished vehicle production for FY2026 is roughly the same as the previous year. Ship-building - The demand environment remains firm, with domestic shipbuilders securing a backlog of orders exceeding three years. - The pace of construction is only increasing slightly due to labor shortages and working- hour regulations. - The government has started to support the shipbuilding industry, which has responded by announcing aggressive investment plans aimed at doubling its output to strengthen competitiveness in Japan’s shipbuilding industry. Other manufacturing (Construction machinery) - The recovery trend is becoming increasingly clear. It is driven in part by the completion of inventory adjustments in the U.S., as well as by robust infrastructure investment and demand for data centers. Meanwhile, production remained at the same level as the previous year with the domestic and Chinese markets continuing to slump. (Industrial machinery) - Against the backdrop of a strong willingness among corporations to invest in capital equipment, we expect demand to remain firm overall. Construction - Rising material costs and higher interest rates continue to weigh heavily on construction investment and interest in buying a house, resulting in overall sluggish demand. Civil engineering - Although budgets for public works projects remain at a high level, actual activity levels and demand for steel are expected to decline year on year due to rising costs and labor shortages. Source: Ministry of Economy, Trade and Industry, “Outlook for Steel Consumption” 15 July, 2026. (The bars for FY2025, 3Q and after are estimates.) Estimating that it will remain at the same level as in FY2025 0 2 4 6 8 1H 2H 1H 2H 1H 2H 1H 2H 1H FY2022 FY2023 FY2024 FY2025 FY2026 Construction Manufacturing YoY: +0.3% YoY: -3.1% Unit: million mt Outlook for Domestic Ordinary Steel Consumption (quarter basis) Trend by sector
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17Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel 82 93 84 77 88 91 86 74 85 90 79 79 86 85 77 70 82 84 2 4 6 8 10 12 14 60 70 80 90 100 110 120 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 2022 2023 2024 2025 2026 Crude steel production (left axis) Steel export (right axis) Trend by sector Business Environment (Overseas) Steel sheet - There are signs that prices have reached their lowest point in the near term due to rising energy prices caused by escalating tensions in the Middle East, as well as an increase in raw material prices since last year. - Although China is expected to face sluggish domestic demand in FY2026, exports, particularly of semi-finished goods, have increased since the conflict in the Middle East began. Furthermore, concerns remain over an increase in the flow of Chinese materials, shut out of the Middle East, back into third countries. Therefore, the situation requires close monitoring. Automotive - Supported by robust EV sales in China, growing demand in India fueled by high economic growth, and stable demand in developed countries, global production remains strong. - Risks such as the impact of tariff measures, particularly in the United States, and economic deterioration due to the situation in the Middle East are also emerging. Concerns regarding automotive production and sales persist. Ship-building - New shipbuilding orders are expected to remain at high levels. - Shipbuilders in China and South Korea are maintaining a stable order backlog. Energy - Uncertainty remains high, including soaring oil prices resulting from tight supply and demand conditions caused by escalating tensions in the Middle East. It is necessary to closely monitor future developments. - The demand for stable energy supplies remains strong, with robust demand expected in the medium term. Although there are recent signs that the market has bottomed out, there has been no significant changein the pattern of sluggish domestic demand, high production levels, and rising exports in China. In addition to existing trade risks, ongoing tensions in the Middle East pose risks to the supply and demand of steel, as well as to market conditions. Real GDP Growth Forecast Data: IMF World Economic Outlook Update July 2026 *ASEAN5： Thailand, Malaysia, Indonesia, Philippine, and Singapore China's crude steel production and steel export Crude steel Production (million mt/ month)) 2025 2026 2027 U.S. 2.1% 2.3% 2.2% China 5.0% 4.6% 4.1% India 7.7% 6.4% 6.7% ASEAN-5* 4.5% 4.1% 4.3% World 3.5% 3.0% 3.4% Steel export (million mt/ month) Crude steel production (million mt) Steel export (million mt) Ratio 2022 1,010 70 7% 2023 1,020 90 9% 2024 1,000 110 11% 2025 960 120 12%
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18Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel 0 2,000 4,000 6,000 8,000 10,000 12,000 0 30,000 60,000 90,000 120,000 150,000 0 300 600 900 1,200 1,500 India: Steel Market PriceChina: Steel Market Price U.S: Steel Market Price Business Environment (Overseas) Domestic demand continues to lack momentum, especially in the real estate sector. Approx. USD600 Approx. USD490 Approx. USD1,290 Average price in 5 cities in China Trend in steel market price by country (HRC price) In addition to the reimposition of safeguards in December 2025, market prices have risen due to higher energy costs, including those of natural gas, driven by the situation in the Middle East. However, prices are currently holding steady. Starting in 2025, the introduction of import tariffs leads to a decline in import volumes and a rise in prices. （CNY/mt） （INR/mt） （US$/mt）
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19Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel $100 $150 $200 $250 $300 $350 $400 Hard coaking coal from Australia term contract FOB $50 $75 $100 $125 $150 $175 $200 Iron ore fines term cotract FOB Raw Materials ’ Market Trends Iron ore（Iron ore fines from Australia） Coking coal（Hard coking coal from Australia）(US$/WMT)(US$/DMT) Term contract FOB (US$/DMT) Apr-Jun Jul-Sep Oct-Dec Jan-Mar FY2023 112 107 103 113 FY2024 121 101 92 89 FY2025 97 91 88 94 FY2026 96 96 - - Term contract FOB (US$/WMT) Apr-Jun Jul-Sep Oct-Dec Jan-Mar FY2023 283 240 327 325 FY2024 251 230 198 194 FY2025 183 181 192 230 FY2026 232 - - - Current level: Around $90 Current level: Around $230 Iron ore: We expect the price to remain at its current level for the time being (approx. FOB$90) , given that there have been no significant changes to supply or demand. Coking co al: Although demand from major markets such as India and China appears weak, there are also supply -side factors. These include continued production cuts in China due to coal mine accidents and production shortfalls at some Aust ralian coal mines. We anticipate that it will remain at its current level (approx. FOB$230) in the near future .
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20Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE SteelStandalone Crude Steel Production 25.88 24.10 23.45 21.95 21.37 Approx. 21.50 Approx. 21.50 19 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2026 (previous forecast) Number of blast furnaces 87 (Since 2H of FY2023 ） Standalone crude steel production (annual) Unit: million mt 万t Standalone crude steel production for the FY2026 is expected to be around 21.50 million tonnes . (As previously announced) Banking of No.3 BF at Kurashiki （Since July 2025） 1H: Approx. 10.80 2H: Approx. 10.70
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21Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel FY2024 FY2025 FY2026 FY2027FY2024 FY2025 FY2026 FY2027 FY2024 FY2025 FY2026 FY2027 FY2024 FY2025 FY2026 FY2027 High-Value-Added Plates, Including Offshore Wind Applications High-tensile Steel Electrical Steel Sheets (NOES) Expanding Sales of High- Value -Added Products Ratio of high- value -added products (*) The ratio of high- value-added products for FY25 was 53% (up 5% from the previous fiscal year, down 1% from the KPI) . Although the ratio was largely in line with the plan, the effects have not been as significant as medium-term projections due to sluggish market conditions and delays in the electrification of the automotive industry. In FY2026, the company aims for 56% through Phase 2 of the Kurashiki electrical steel sheet expansion and increased sales of plates for offshore wind power generation, among other initiatives. 48% 53% 56% 60% FY2024 Actual FY2025 Actual FY2026 KPI FY2027 8th MTBP target Trends in volume of major high-value -added products - Demand remains strong both domestically and internationally, driven by factors such as data center demand September 2024 Phase I of the NOES capacity expansion at Kurashiki FY2026 Phase II of the NOES capacity expansion at Kurashiki October 2028 Construction of CGL for manufacturing ultra-high strength steel at Fukuyama June FY2021 Construction of a new continuous caster at Kurashiki Planned Planned ▼High strength steel sheets for automobiles ▼Large-size steel plate (offshore wind) ▼Electrical steel sheets for motor cores ▼Electrical steel sheets for transformers +¥40.0 billion (vs. FY2024) - Although demand for EVs is currently slowing, it is expected to grow in the medium to long term - Planned expansion work for FY2026 - The Akita Katagami project in Japan is underway - Numerous inquiries regarding overseas projects - Demand for high-strength, high-performance high- tensile steel is expected to remain strong - Construction of a new CGL is scheduled for FY2028 Electrical Steel Sheets (GOES) * High value-added products: Products with a technological edge which are recognized by customers as having added value and earning power exceeding that of commodity products (definition by the Company) * The vertical axis scale differs by product
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22Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Impact of Situation in the Middle East The cost impact on first– quarter profit was approximately 15.0 billion yen. Although predicting future trends is difficult, we have factored in approximately 60.0 billion yen per year in our full-year forecast . We are working to promptly pass the increased costs on to selling prices. Breakdown on impact on costs WTI crude oil prices (billions of yen) Factored the assumption that WTI crude oil price of $80/ bbl from July onward into the cost. In addition to the bunker fuel, the impact of the Middle East has been factored into the account for costs associated with gas and electricity contracts, materials, and other procurement expenses, considering the timing of these events. The forecast also considers the cost impact on group companies. Full-year (forecast) 1Q (actual) Impact on Sales No Material Impact Raw Materials and Supplies Supply Concerns (Impact on Operations) No Material Impact Market Changes Increased Transportation Costs, etc. (Including the impact on group companies) Approx. 15.0 *included in the figure shown on the right Approx. 60.0 40 50 60 70 80 90 100 110 120 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 (US$/bbl)
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23Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE SteelStatus of Sales Price Improvements +7 +8 +7 ＋2 ＋7 ＋8 ＋6 ＋6 ＋5 ＋1 (4) ＋1 FY2022 FY2023 FY2024 FY2025 1Q FY2025 2Q FY2025 3Q FY2025 4Q FY2026 1Q FY2026 2Q (Forecast) FY2026 2H (Forecast) JFE Steel is working to raise steel product prices in response to rising prices of main raw materials and other input costs, as well as cost increases stemming from the situation in the Middle East. The price increase of +10,000 yen per metric ton, which has been implemented since the second half of FY2025, will be achieve d in the first half of FY2026. The additional price increase of +5,000 yen per metric ton will also be implemented at an early date. While the spread including various costs (based on the domestic/export average) is expected to improve to a level similar to that seen in the first half of FY2025 by the second half of FY2026, we will continue to strive for further improvements to ensure sustaina ble profitability. Change in spreads including various costs (metals, energy, materials, logistics, labor costs, foreign exchange effects, etc.) per ton of steel product shipments (FY2021 baseline) （000yen / mt) FY2021 Baseline Increase in main raw material prices Cost increases resulting from the situation in the Middle East Spreads including various costs (Domestic / Export Average) Increase in various costs The figure shows the change from FY2021 Striving for further improvements
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24Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel Unit FY2025 FY2026 FY2026 Previous Forecast (Full Year)1H 2H Full year 1H 2H Full year1Q 2Q 3Q 4Q 1Q 2Q Revenue billions of yen 761.2 776.2 1,537.4 773.8 777.2 1,551.0 3,088.4 763.5 876.5 1,640.0 1,710.0 3,350.0 3,280.0 Segment Profit billions of yen (12.1) 6.8 (5.3) 28.6 14.7 43.3 38.0 3.0 27.0 30.0 70.0 100.0 100.0 Excluding Inventory Valuation etc.* billions of yen 16.9 25.8 42.7 26.6 (0.3) 26.3 69.0 (15.0) (15.0) 0.0 70.0 70.0 70.0 ー Crude Steel (Standalone) million mt 5.28 5.52 10.80 5.32 5.25 10.57 21.37 5.25 Approx. 5.60 Approx. 10.80 Approx. 10.70 Approx. 21.50 Approx. 21.50 Crude Steel (Consolidated) million mt 5.61 5.81 11.42 5.59 5.54 11.13 22.55 5.56 Approx. 5.90 Approx. 11.40 Shipment (Standalone) million mt 4.71 4.82 9.53 4.72 4.61 9.33 18.86 4.54 Approx. 4.90 Approx. 9.40 Export Ratio on Value Basis （Standalone） % 39.9 42.8 41.3 40.3 40.1 40.2 40.8 39.3 Approx. 43 Approx. 41 Average Sales Price (Standalone) 000 yen / mt 120.4 119.2 119.8 120.0 123.4 121.7 120.7 124.2 Approx. 134 Approx. 129 Exchange Rate ¥/US$ 145.3 147.0 146.2 153.2 155.3 154.3 150.2 159.9 Approx. 160 Approx. 160 Approx. 160 Approx. 160 Approx. 155 Exchange Rate (End of Term) ¥/US$ 144.8 148.9 148.9 156.6 159.9 159.9 159.9 162.4 Approx. 160 Approx. 160 Approx. 160 Approx. 160 Approx. 155 JFE Steel Financial Results for Fiscal Year 2026 ＊Excluding inventory valuation, carry over and foreign exchange valuation from segment profit
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25Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel 1) Cost +2.0 2) Volume and Mix +3.0 - Crude Steel Production Approx. 21.50 million mt → Approx. 21.50 million mt 3) Spreads* (16.0) - Rising costs due to the situation in the Middle East - Promoting improvement to steel product prices 4) Inventory valuation, etc. ±0.0 - Inventory valuation ±0.0 (+30.0→+30.0) - Carry over -4.0 (+ 3.0→ - 1.0) - Foreign exchange valuation +4.0 (- 3.0→ + 1.0) 5) Others +11.0 - Group companies +7.0 (Domestic: +2.0, Overseas: +5.0 (India: +8.0)) - Others +4.0 (Depreciation and other matters ) JFE Steel Segment Profit Analysis (FY2026 (Previous Forecast) vs FY2026 (Updated Forecast )) Breakdown *Spreads including various prices (metals, energy, materials, logistics, labor costs, foreign exchange effects, etc.) Unit FY2026 Previous FY2026 Updated Crude Steel (Standalone) million mt Approx. 21.50 Approx. 21.50 Shipment (Standalone) million mt - - Average Sales Price 000 yen /mt - - Exchange Rate ¥/US$ Approx. 155 Approx. 160 （billions of yen） FY2026 Previous forecast FY2026 Updated forecast Change Segment Profit 100.0 100.0 ±0.0 ＊Excluding Inventory Valuation, etc. 70.0 70.0 ±0.0 Impact of the situation in the Middle East on Costs: Approx. -60.0 (Including the group companies -10.0)
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26Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel 1) Cost +37.0 - Operational improvement, effects from investments, and other initiatives 2) Volume and Mix +13.0 - Crude Steel Production 21.37 million mt→Approx. 21.50 million mt - Expansion of high-value-added products (Electrical steel, plates for wind power applications, etc.) 3) Spreads* (36.0) - Sluggish steel market conditions in domestic and overseas markets, surge in main raw materials prices - Rising costs due to the situation in the Middle East - Initiatives to improve steel product prices 4) Inventory valuation, etc. +61.0 - Inventory valuation +76.0 (-46.0→+30.0) - Carry over -10.0 (+ 9.0→ - 1.0) - Foreign exchange valuation - 5.0 (+ 6.0→ + 1.0) 5) Others (13.0) - Group Companies +23.0 (Domestic: -11.0, Overseas: +34.0 (India: +33.0)) - Others -36.0 (Depreciation, interest expense, and other matters) JFE Steel Segment Profit Analysis (FY2025 (Actual) vs FY2026 (Forecast )) Breakdown *Spreads including various prices (metals, energy, materials, logistics, labor costs, foreign exchange effects, etc.) Unit FY2025 Actual FY2026 Forecast Crude Steel (Standalone) million mt 21.37 Approx. 21.50 Shipment (Standalone) million mt 18.86 - Average Sales Price 000 yen /mt 120.7 - Exchange Rate ¥/US$ 150.2 Approx. 160 （billions of yen） FY2025 Actual FY2026 Forecast Change Segment Profit 38.0 100.0 +62.0 ＊Excluding Inventory Valuation, etc. 69.0 70.0 +1.0 Impact of the situation in the Middle East on Costs: Approx. -60.0 (Including the group companies -10.0)
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27Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel 1) Cost +7.0 - Operational improvement 2) Volume and Mix +3.0 - Crude Steel Production Approx.10.80 million mt→ Approx. 10.70 million mt - Expansion of high-value-added products 3) Spreads* +59.0 - Promoting improvement to steel product prices 4) Inventory valuation, etc. (30.0) - Inventory valuation -18.0 (+24.0→+6.0) - Carry over -11.0 (+ 5.0→ -6.0) - Foreign exchange valuation - 1.0 (+ 1.0→ ± 0) 5) Others +1.0 - Group Companies +14.0 (Domestic: +10.0, Overseas: +4.0 (India: +3.0)) - Others -13.0 (Depreciation, interest expense and other matters) JFE Steel Segment Profit Analysis (FY2026 1H (Forecast) vs FY2026 2H (Forecast)) Breakdown *Spreads including various prices (metals, energy, materials, logistics, labor costs, foreign exchange effects, etc.) Unit FY2026 1H Forecast FY2026 2H Forecast Crude Steel (Standalone) million mt Approx. 10.80 Approx. 10.70 Shipment (Standalone) million mt Approx. 9.40 - Average Sales Price 000 yen /mt Approx. 129 - Exchange Rate ¥/US$ Approx. 160 Approx. 160 （billions of yen） FY2026 1H Forecast FY2026 2H Forecast Change Segment Profit 30.0 70.0 +40.0 ＊Excluding Inventory Valuation, etc. 0.0 70.0 +70.0 No impact on costs from the situation in the Middle East (1H to 2H)
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28Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Engineering Financial Forecast for Fiscal Year 2026
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29Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE EngineeringJFE Engineering Financial Forecast for Fiscal Year 2026 While order intake is expected to decline from FY2025 (a record high), when large- scale projects were concentrated, the order backlog is expected to remain at a high level . Through the steady execution of projects already secured, including the offshore wind monopile business, segment profit is expected to reach 25.0 billion yen . (Up 1.1 billion yen from the previous fiscal year, as previously announced ) (billions of yen) FY2025 Actual FY2026 Forecast (previous) FY2026 Forecast (Updated) Change (vs FY2025) Change (vs previous forecast) 1H 2H Full year Full year 1H 2H Full year Full year Full year Orders 363.0 473.1 836.1 600.0 290.0 310.0 600.0 (236.1) 0 Revenue 287.0 312.7 599.7 620.0 290.0 330.0 620.0 +20.3 0 Segment profit 12.6 11.3 23.9 25.0 13.0 12.0 25.0 +1.1 0 Current business environment/Overview of profit and loss Financial forecast Progress of Orders and Order backlog 579.5 836.1 600.0 994.4 1,223.5 1,200.0 FY2024 FY2025 FY2026 （Forecast） Average：¥718.0 bn. Order backlog (billions of yen) Orders
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30Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Shoji Financial Forecast for Fiscal Year 2026
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31Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE ShojiJFE Shoji Financial Forecast for Fiscal Year 2026 Due to the recovery of our business in North America from the previous fiscal year and an improvement in the spread on domestic steel products, segment profit is expected to be 45.0 billion yen (up 4.8 billion yen year -over- year, as previously announced ). (billions of yen) FY2025 Actual FY2026 Forecast (previous) FY2026 Forecast (Updated) Change (vs FY2025) Change (vs previous forecast) 1H 2H Full year Full year 1H 2H Full year Full year Full year Revenue 647.5 685.5 1,333.0 1,400.0 700.0 700.0 1,400.0 +67.0 0 Segment profit 21.9 18.3 40.2 45.0 22.5 22.5 45.0 +4.8 0 Current business environment/Overview of profit and loss Financial forecast
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32Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Dividends
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33Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Dividends JFE Holdings agreed to pay an interim dividend of 40 yen per share at its Board of Directors. The annual dividend for FY2026 is expected to be 80 yen per share （based on the Eighth Medium -term Business Plan (*)） 45 20 60 50 50 50 40 40 50 10 80 30 50 50 40 40 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 Year-end dividend Interim dividend 33.5% N/A N/A 28.0% 28.5%Pay-out ratio 30.9% 69.2% 72.5% Dividend per share（yen/share） 80 yen * A dividend payout ratio of approximately 30%, with a minimum of 80 yen per share per year minimum Forecast 33.9% Dividend payout ratio of around 30% Sixth Medium-term Business Plan Seventh Medium-term Business Plan Eighth Medium-term Business Plan Set a minimum of ¥80/share Our indicator
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34Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Topics
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35Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Keihin District Land Utilization Decision to Sell the Advanced Logistics Zone Private power plant Advanced logistics zone Port logistics zone Carbon-neutral energy zone Signing of Land Transfer Agreement for advanced logistics zone (Announced on August 5, 2026) The gain on the transfer (*) is expected to be approximately 45.0 billion yen (FY2027: 23.0 billion yen; FY2033 and beyond: 22.0 billion yen) A detailed press release and a joint press conference with the transferee are scheduled to be held in late August or later. * Gain on transfer: The amount obtained by deducting the book value and estimated expenses related to the transfer from the t ransfer price • Development of an industrial hub with research and development functions as its core • Starting to use the land in Phase 2 (4 ha) after the land in in Phase 1 (6 ha/delivered ) Minami-watarida area ■：Area developed ahead of the others • Already sold Ohgimachi area • Demolition of idle facilities and commencement of use of land Roadside area • Demolition of idle facilities Co-creation area To be completed in FY2025 to FY2034 FY2024 FY2024 FY2031 Vision for FY2035 (Areas for land conversion in the Keihin district) • To be developed as a transportation hub in the waterfront area Ikegami area • To be developed into a major recycling business hub in the Tokyo metropolitan area Mizue area • Electric power business (using hydrogen) • Joint data center business Ohgishima North area • Lease to GI business (commercial demonstration of liquefied hydrogen supply chain) • Transfer of advanced logistics zone Lead area * FY2025- FY2027- *Metropolitan Expressway Bayshore route Ohgishima entrance and exit (tentative name) is set for partial joint start in FY2028
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36Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Engineering Collection & transportation Intermediate waste treatment Recycling Final Disposal - Plastics/PET bottle raw materials Animal feed/Fertilizers - Metals - Power generation - Incineration - Shredding/ Sorting - Biogas production - Animal Feed / Composting Final Disposal Site New entry Entry into the Final Disposal Business ［Establishment of Japan's First Integrated Waste Management System］ Food waste PET bottle Incineration Plastic Home electric Other appliance SAFECO trans Co., Ltd. Waste collection, transportation, and intermediate waste treatment In June 2026, JFE Engineering acquired 100% of Tokan Co., Ltd. and SAFECO trans Co., Ltd. , operators of final disposal sites and intermediate waste treatment facilities. Decided to build Akita Prefecture's largest controlled final landfill site. (scheduled to begin operations in FY2030; capacity: 3.16 million m³) In addition to constructing and operating waste treatment facilities, JFE Engineering is steadily expanding its Waste- to-Resource business as an integrated waste management operator providing end -to-end services covering collection and transportation, intermediate tr eatment, recycling, and final disposal. Factory Wholesale /Retail Restaurant The business will serve as a stable earnings base supporting the achievement of the FY2035 segment profit target of ¥100.0 billion. Stabilizing Revenue - Reducing the risk of soaring costs associated with the “landfill shortage issue” - Optimizing the process from collection to final disposal Improving Service Quality - Enhancing traceability – Disaster response - Strengthening bid proposals for the construction of waste treatment facilities JFE recycling value chain Competitive advantage through the Establishment of an I ntegrated System Recycling facilities of JFE Engineering Tokan Co., Ltd. Operating final disposal sites (Released in June 30, 2026)
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37Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE SteelReceive Grand Prix Award at “IT Japan Award 2026” (Winner of the runner -up prize in 2007 and 2021) First grand prix award in the steel industry Third Award—the Most Among Japanese Companies, including two runner -up awards Received unanimous support and a perfect score for the large - scale, short -lead-time restructuring of a steelworks system 30 20 15 200 Major financial institution A Major financial institution B Major heavy industry company C JFE (Other companies’ figures are based on our estimates) System scale of completed domestic projects (million steps) * The DX Report, released by the METI in 2018, pointed out that economic losses of up to 12 trillion yen per year could occur from 2025 onwards due to the increasing complexity, aging and 'black-boxing' of existing IT systems, as well as a shortage of IT personnel involved in system operation, maintenance and support. Transitioning of core systems of all manufacturing bases from traditional mainframes to an open environment. Completed a large -scale migration of our systems within a very short timeframe, which is unparalleled in Japan. Achieved before facing the “2025 problem (*) ” (the first among major steel manufacturers in Japan) Overview of the System Refresh (Released in February 26, 2026) award organized by Nikkei Computer that recognizes outstanding IT initiatives by companies Comprehensive evaluation of the contribution to management transformation and the impact of the transformation Recognized Initiatives Overview of IT Japan Award Creating new business models by solving challenges across various manufacturing sectors JFE’s expertise, gained through the restructuring of vast system assets (Released in July 1, 2026)
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Copyright © 2025 JFE Holdings, Inc. All Rights Reserved. This presentation material is not a disclosure material under the Financial Instruments and Exchange Act and does not guarantee the accuracy or completeness of the information. The forecasts presented are based on information received at the time of the briefing and include uncertainties. Therefore, please refrain from making investment decisions based solely on this document. Our company shall not be liable for any damages arising as a result of the use of this document.
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39Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Appendix (1) Data on "JFE Vision 2035" Eighth Medium -term Business Plan (FY2025 – FY2027)
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40Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. We formulated the JFE Group Long- term Vision, JFE Vision 2035, to announce the JFE Group’s aspirations. To promote growth strategies aimed at realizing our aspirations, we formulated the Eighth Medium -term Business Plan (FY2025 –2027). (announced in May 2025) 8th Medium-Term Business Plan Materials (Reposted) Economic Sustainability Environment al & Social Sustainability Eighth Medium-term Business Plan JFE Vision 2035Seventh Medium-term Business Plan Formulated the Environmental Vision 2050 Shift focus from quantity to quality Encourage investment in growth fields • Complete structural reforms • Increase ratio of high-value-added products (50%) • Overhaul our sales pricing • Manufacturing, processing, and distribution of electrical steel sheets • Recycling business • Entry into the offshore wind power business Rebuild our domestic production structure • Develop ultra-innovative technology (GI Fund) • Build innovative electric arc furnaces (*) • Promote expansion in green steel sales Develop and promote the widespread adoption of green steel • Expand business with top-tier partners in growth regions “from the inside” Expand the overseas business • Increase ratio of high-value-added products (60%) • Reorganize our domestic production structure and business Expand consolidated business profit (Segment profit: ¥700.0 billion) • Streamlined yet resilient domestic structure based on growth strategies ‐ Create technologies and nurture talent that drive our competitive advantage - Deepen our shift from quantity to quality, and reorganize and integrate each business • Growth through the expansion of business in overseas growth regions “from the inside” - Collaborate with top- tier partners and pursue M&A Become the leader in carbon neutrality (CN) technology development • Complete development of ultra-innovative process conversion technology • Provide strong technological capabilities and a diverse eco-product lineup to help conserve the global environment • Become the main player in the high-quality green steel market* A large, high-efficiency electric arc furnace capable of producing high-grade and high-function steel products JFE Vision 2035 and Eighth Medium -term Business Plan
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41Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Promoting management with an awareness of the cost of capital and the stock price for the sustainable improvement of corporate value Initiatives to Improve Corporate Value • Reducing assets of non-core businesses • Achieving a balance between growth and carbon-neutrality investments and financial soundness Optimizing the balance sheet Profitability improvement • Build a slim, resilient domestic production structure • Enhance the ratio of high-value-added products • Expand “insider” business in overseas growth fields and regions • Expand the operation and maintenance (O&M) business, especially waste-to-resources, and expand it overseas • Expand carbon-neutral business • Leveraging resources to ensure stable earnings Improvement of expected growth rate • Business investments focused on growth fields • Restructuring the business portfolio • Human resources strategy to realize management strategies • Business reform through DX Reducing the cost of equity • Promote the development of ultra-innovative technologies • Creating a green market Steel Trading Engineering Land Eliminating concerns about future growth Improving the ability to create a competitive edge Eliminating concerns about carbon neutrality initiatives Stable shareholder returns • A dividend payout ratio of around 30%, with a minimum of ¥80/share New Improvement of PBR ROE that stably exceeds the cost of equity Increasing market confidence Revising the Director compensation system (making ROE and relative TSR indicators) Revision Improvement of ROE Improvement of PER FY2027 target 10% 8th Medium-Term Business Plan Materials (Reposted)
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42Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Progress and Plans on Key Initiatives Events To FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 From FY2031 From FY2036 Steel Business Domestic Rebuilding production structure Strategy of high value- added products Overseas India Electrical Steel J2ES/J2ES Nashik Operation of Integrated Steelworks JJSL Engineering Business Trading Business Keihin district land utilization Green Transformation (GX) Strategy Digital Transformation (DX) Strategy Sheet Business Restructuring (Released in April 2026) Land Transfer Agreement Signed for the Advanced Logistics ZoneSales of Minami- watarida/Ohgimachi Demolition Complete production capacity expansion (350,000 mt in total) Start of JV (capacity: 4.5 million mt) Capacity expansion to 10.0 million mt Announced acquisition of J2ES Nashik (50,000 mt) J2ES begins operation (150,000 mt in total) Acquisition of STUDCO/CEMCO Implementation of ultra-innovative technologies Design and construction to expand manufacturing facility Construction to expand manufacturing capacity Development of ultra-innovative technologies / Expansion of GX Steel sales Kurashiki: Start of innovative EAF operation Completion of transition of host-based core systems to open architecture Decision on capacity expansion investment Signed 2nd MOU toward the joint development of data center project Start of monopile manufacturing Started discussions on collaboration with both Yamato Kogyo and YODOKO Start of data center (60 MW) operation Start of Mass Production at JSS (Serbia) Investment projects already decided will continue to be sequentially put into operation after the 9th MTBP.Including Group Companies Shape steel Business Restructuring (Released in May 2026) Chiba: Start of EAF operation for stainless steel Establishment of JCSS Enhancing CPS integration to realize intelligent steelworks Temporary shutdown (Restart in 2028) Kurashiki #3 Fukuyama #4 Shutdown Kurashiki #2 Shutdown (Conversion to innovative EAF) Kurashiki: New continuous casting machine (7CC) Kurashiki: Capacity expansion of NOES production facilities (1st period) Kurashiki: Capacity expansion of NOES production facilities (2nd period) Fukuyama CGL Changes from Previous Announcement
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43Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel We are steadily implementing various measures to establish a structure consisting of five blast furnaces and one inn ovative EAF. We enhance the resilience of domestic production by restructuring the s heet business (announced in April 2026) and JFE Steel Group shape steel business (announced in May 2026). Kurashiki district ・No.3 blast furnace *banking (already announced, planned to come on line by the time No.2 blast furnace is suspended) ・No.2 blast furnace *complete suspension (to be suspended in FY28 due to the shift to an innovative EAF) ・Coke oven 1B (FY2025) ・Coke oven 4AB (FY2027) Fukuyama district ・No.4 blast furnace *complete suspension (FY2027) ・Coke oven 4ABC (FY2025) ・Bloom Continuous casting machine (FY2027) ・No.4 slab continuous casting machine (9th MTBP period) Keihin district ・Pickling line (FY2026), Hot dip galvanizing Line (No.4 CGL) (FY2028) Equipment planned to be shut -down Building Optimal Production Structure for Domestic Steelmaking East Japan Works Sendai Works Spiral steel pipes Iron powder Bars and rods Fukuyama district PlatesSheets UOE pipes Can steel Semi-finished products Shapes Kurashiki district Bars and rods Semi-finished products Sheets Electrical steel sheets Plates Shapes West Japan Works Stainless steel Sheets Introducing new CGL Plates Number of blast furnaces: 1 → 0 *Shut down in FY23 Electrical-resistance welded pipes and forge- welded pipes Sheets Keihin district Chiba district Number of blast furnaces: 3 → 2 (FY2027) Number of blast furnaces: 3 → 2 (FY2028) Introduction of an innovative EAF (1Q of FY2028) One blast furnace Introducing a SUS EAF (Apr. 2026) Expansion of EAF capacity (Completed in FY2024) Chita Works Electrical- resistance welded pipes Seamless pipes Expansion of electrical steel sheet capacity JFE Steel Group shape steel business Restructuring (announced in May 2026) Sheet Business Restructuring (announced in April 2026) ［Expected profit improvement from sheet business restructuring］ ¥+10.0 bn. per year （upon completion of the restructure） Previous Announcement Materials (Reposted) [Impact of Production Optimization] ¥+20.0 billion (vs. FY2024)
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44Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Keihin District Land Utilization Initiatives in FY2025 Carbon-neutral energy zone (Lease): Lease begins with “Japan Suiso Energy“ (from April 2025) Advanced logistics zone (Sales) ：We signed a land transfer agreement with individual contractors. (August, 2026) Electric Power and Data Center Business : Signed a Memorandum of Understanding with Mitsubishi Corporation to jointly conduct power and data center operations (March 2026) • Development of an industrial hub with research and development functions as its core • Starting to use the land in Phase 2 (4 ha) after the land in in Phase 1 (6 ha/delivered ) Minami-watarida area • To be developed as a transportation hub in the waterfront area Ikegami area • To be developed into a major recycling business hub in the Tokyo metropolitan area Mizue area ■：Area developed ahead of the others • Already sold Ohgimachi area • Electric power business (using hydrogen) • Joint data center business Ohgishima North area • Lease to GI business (commercial demonstration of liquefied hydrogen supply chain) • Delivery of advanced logistics zone Lead area * • Demolition of idle facilities and commencement of use of land Roadside area • Demolition of idle facilities Co-creation area FY2025- FY2027- To be completed in FY2025 to FY2034 Private power plant Advanced logistics zone Port logistics zone Carbon-neutral energy zone Vision for FY2035 (Areas for land conversion in the Keihin district) *Metropolitan Expressway Bayshore route Ohgishima entrance and exit (tentative name) is set for partial joint start in FY2028 FY2024 FY2024 FY2031 Changes from Previous Announcement
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45Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Financial Strategies Asset Sales Cash flows from operating activities 1,410.0 280.0 180.0 Borrowings, etc. Shareholder Returns 190.0 Investment 1,680.0 • Depreciation ¥870.0 bn. • Profit, etc. ¥540.0 bn. (*) A dividend payout ratio of approximately 30%, with a minimum of 80 yen per share per year Revision of investment plan Acceleration of Asset Sales Maintain dividend policy (*) Recent changes in the business environment （Balancing growth and Carbon- Neutrality investments with stable shareholder returns ） In light of recent changes to the business environment and to ensure financial soundness, we will accelerate asset sales and review our investment plans. Regarding shareholder returns, we intend to maintain our dividend payout policy at approximately 30% (with a minimum of 80 yen per share annually). Cash Allocation Financial Targets (FY2027) • Debt/EBITDA about 3X • D/E Ratio about 60% No Change Cash In Cash Out 8th Medium-term business plan （Released on May 2025） (billions of yen) • Slowdown of the Chinese economy • U.S. tariffs and other protectionist measures • Sharp rise in raw material prices • Escalation of tensions in the Middle East Previous Announcement Materials (Reposted)
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46Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Towards Achievement of 8th Medium- Term Business Plan The business environment surrounding our company remains extremely challenging, and we expect results for FY2026 to fall shor t of initial medium-term projections . To achieve our earnings targets for FY2027— the final year of our medium -term buisness plan— a recovery in the profitability of our domestic steel business is essential . The overseas steel business will also aim to increase earnings, primarily through the organic growth of JSW and the inclusion of equity method income from JJSL In the engineering business, earnings improvement will be pursued through productivity enhancements and cost reductions, prim arily in the steadily performing domestic Waste- to-Resource ( WtR) sector and the core infrastructure segment. In the trading business, we will increase business profit by promoting overseas business expansion, all while closely monitor ing the current international situation. Moving beyond the 9th Medium -Term, we will continue to make steady progress towards realizing our long- term vision. (Becoming a leader in technology development for carbon neutrality (CN) and increasing the Group’s business profit to 700.0 billion yen) ・ Improvement in spreads following the completion of steel price increases （by raising the price of major domestic steel grades by at least ¥10,000/tonne, as previously announced, and by reflecting the impact of rising prices due to the situation in the Middle East and other factors on our steel prices） ・ Increase in the proportion of high-value-added products by expanded sales of electrical steel sheets, ultra-heavy steel plates, and other products ・ Efforts to streamline the domestic production structure and implement other cost reductions are continuing (e.g. rebuilding the steel sheet business and reorganising group companies) Key initiatives Previous Announcement Materials (Reposted)
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47Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Rebuiding optimal domestic production structure, including group companies • Start innovative EAF operation at Kurashiki (FY2028) • Restructure steel sheet business (by FY2028) and JFE Steel Group shape steel business • Cooperation with industry peers (Yamato Kogyo Group, YODOKO, Ltd., etc.) Increasing proportion of high- vaue-added products • Start new CGL operation at Fukuyama (FY2028) • Capture steel demand arising from the shipbuilding industry revitalization roadmap Overseas growth • Achieve organic growth of JSW (50 million mt : FY2030) • Expand JJSL. (10 million mt : FY2030) • Complete expansion of J2ES and J2ES Nashik (35million mt : FY2030) • Advance overseas expansion, driven by local partnerships, in India, North America, and other key regions. Carbon Neutrality and the Circular Economy • Complete R&D for ultra-innovative technologies (targeted for around 2035) • Expand sales of GX steel 'JGreeX TM' • Expand offshore wind power business (Stabilizing monopile production and entering the floating structure market) • Develop a domestic recycling value chain Keihin District land utilization and business use • Demolish roadside and co-creation areas to expand the land-use scope • Commence full-scale operations of the power and data center business (aiming for a capacity of approximately 60 MW by FY2031) Others • Expand solution buiness (JFE Resolus TM) 75.0 Growth of current overseas business (JSW, etc.） New Investments (JJSL,J2ES,J2ES Nashik） Key Initiatives to Drive Growth Starting from Nineth Medium-Term 200.0 -2.9 18.3 FY2027 (8thMTBP) FY2035FY2024 FY2025 （billions of yen）【Overseas Business Profit】 Trading businessSteel business Engineering businessEN SHST ST ST ST ST ST ST ST ST ST SH ST ST SH HD Keihin business HD HD ST ST EN ST SHEN Toward the Realization of "JFE Vison 2035" EN Previous Announcement Materials (Reposted)
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48Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Appendix (2) Financial Data/ Profit/Loss Analysis
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49Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Financial Data
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50Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Profitability Targets and Main Performance Eighth Medium -term Business Plan FY2027 FY2025 Actual FY2026 Forecast FY2027 Groupwide Consolidated business profit ¥400.0 billion ¥166.3 billion (*) ¥185.0 billion (*) ー ROE 10% or more 2.7% Approx. 6% ー Debt/EBITDA About 3x 4.8x 1H Forecast 4.8x ー D/E About 60％ 59.4% 1H Forecast 66.6% ー Operating companies Steel business Segment profit ¥260.0 billion ¥69.0 billion (*) ¥70.0 billion (*) ー Engineering business Segment profit ¥42.0 billion ¥23.9 billion ¥25.0 billion ー Trading business Segment profit ¥60.0 billion ¥40.2 billion ¥45.0 billion ー Shareholder returns Dividend policy Dividend payout ratio of around 30%, with a minimum of 80yen/share 80yen/share 80yen/share ー (*) excluding inventory valuation, etc. in steel business
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51Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. （billions of yen） Eighth Medium -term Business Plan FY2027 FY2024 Actual Value FY2025 Actual Value Domestic Steelmaking 90.0 43.2 (45.6) Domestic Group Companies 90.0 82.3 90.6 Overseas Steel 75.0 (2.9) 18.3 Solutions 15.0 6.4 10.6 Adjustments (10.0) 8.3 (4.9) Steel business *excluding inventory valuation, etc. 260.0 137.3 69.0 Waste to Resource 17.0 7.3 8.8 Carbon Neutral 16.0 0.5 2.5 Core Infrastructure 9.0 11.5 12.6 Engineering Business 42.0 19.3 23.9 Domestic Business 25.0 23.5 20.9 Overseas Business 35.0 24.4 19.3 Trading Business 60.0 47.9 40.2 Adjustments 3.0 10.8 8.4 Segment Profit *Excluding inventory valuation, etc. 365.0 215.5 141.5 Profit of Operating Companies
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52Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Main Financial Data Fiscal Year FY2017 FY2018 (billions of yen, %, times) Ordinaly income 216.3 221.1 EBITDA (*1) 388.8 405.9 ROS (*2) 5.9% 5.6％ ROE (*3) 7.6% 8.3％ ROA (*4) 5.2% 5.1％ Debt outstanding 1,330.9 1,449.9 Debt/EBITDA multiple (*5) 3.4x 3.6x D/E ratio (*6) 58.1% 62.0％ Profit attributable to owners of parent (yen/share) 251 285 Dividend (yen/share) 80 95 Pay-out Ratio 31.9% 33.3％ Fiscal Year FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 (billions of yen, %, times) Business profit 232.0 37.8 (12.9) 416.4 235.8 298.2 135.3 135.3 EBITDA (*1) 428.2 269.4 223.4 668.7 505.4 572.3 392.9 409.5 ROS (*2) 6.0% 1.0% (0.4%) 9.5% 4.5% 5.8% 2.8% 3.0% ROE (*3) 8.6％ (11.1%) (1.3%) 15.7% 7.9% 8.6% 3.7% 2.7% ROA (*4) 5.0％ 0.8% (0.3%) 8.4% 4.4% 5.3% 2.4% 2.3% Interest-bearing debt outstanding 1,523.8 1,814.3 1,806.1 1,849.4 1,862.9 1,830.2 1,766.4 1,959.3 Debt/EBITDA multiple (*5) 3.6x 6.7x 8.1x 2.8x 3.7x 3.2x 4.5x 4.8x D/E ratio (*6) 68.2％ 96.4% 93.2% 80.8% 67.8% 58.0% 54.3% 59.4% Profit attributable to owners of parent (yen/share) 284 (343) (38) 500 281 323 144 110 Dividend (yen/share) 95 20 10 140 80 100 100 80 Pay-out Ratio 33.5％ － － 28.0% 28.5% 30.9% 69.2% 72.5% J-GAAP IFRS ＊1 EBITDA = Business profit + Depreciation and Amortization ＊2 ROS = Business profit / Revenue ＊3 ROE = Profit attributable to owners of parent / Equity attributable to owners of parent ＊4 ROA = Business profit / Total assets ＊5 Debt/EBITDA multiple = Interest-bearing debt outstanding / EBITDA ＊6 D/E ratio = Interest-bearing debt outstanding / Equity attributable to owners of parent For debt having a capital component, a portion of its issue price is deemed to be capital, as assessed by rating agencies. 【IFRS】*1 EBITDA = Ordinaly income + Interest expenses + Depreciation and Amortization *2 ROS = Ordinaly income / Net Sales *3 ROE = Profit attributable to owners of parent / Shareholders’ equity *4 ROA = (Ordinaly income + Interest expenses) / Total assets *5 Debt/EBITDA multiple = Debt outstanding / EBITDA *6 D/E ratio = Debt outstanding / Shareholders’ equity For debt having a capital component, a portion of its issue price is deemed to be capital, as assessed by rating agencies. 【J-GAAP】
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53Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 (billions of yen) Full year Full year Full year Full year Full year Full year Full year Full year Steel Business 2,830.6 2,681.3 2,255.2 3,173.4 3,881.1 3,716.0 3,365.1 3,088.4 Engineering Business 485.8 512.2 485.7 508.2 512.5 539.9 569.8 599.7 Trading Business 1,125.8 1,084.1 932.5 1,231.7 1,514.1 1,476.4 1,438.5 1,333.0 Adjustments (568.6) (548.0) (446.1) (548.3) (638.9) (557.8) (513.9) (481.9) Revenue 3,873.6 3,729.7 3,227.2 4,365.1 5,268.7 5,174.6 4,859.6 4,539.2 Business Profit (A） 232.0 37.8 (12.9) 416.4 235.8 298.2 135.3 135.3 [Excluding Inventory Valuation etc.] [195.0] [67.8] [21.1] [222.4] [162.8] [296.2] [236.3] [166.3] Finance Income/Cost（B） (12.5) (12.5) (12.4) (11.6) (14.8) (18.6) (20.7) (24.7) Steel Business 161.3 (8.7) (65.4) 323.7 146.8 202.7 36.3 38.0 [Excluding Inventory Valuation etc.] [124.3] [21.3] [(31.4)] [129.7] [73.8] [200.7] [137.3] [69.0] Engineering Business 20.1 23.1 24.0 26.0 13.4 24.3 19.3 23.9 Trading Business 35.7 27.0 20.0 55.9 65.1 48.9 47.9 40.2 Adjustments 2.3 (15.9) (4.1) (0.9) (4.3) 3.5 10.8 8.4 Segment Profit(A+B) 219.5 25.3 (25.4) 404.8 221.0 279.6 114.5 110.5 [Excluding Inventory Valuation etc.] [182.5] [55.3] [8.6] [210.8] [148.0] [277.6] [215.5] [141.5] Exceptional Items (10.2) (238.8) 20.4 (16.2) (10.7) (11.2) 29.7 (23.1) Profit before Tax 209.3 (213.4) (4.9) 388.5 210.2 268.3 144.3 87.4 Tax Expense and Profit (Loss) Attributable to Non-Controlling Interests (45.8) 15.7 (16.9) (100.4) (47.6) (70.9) (52.4) (17.2) Profit Attributable to Owners of Parent 163.5 (197.7) (21.8) 288.0 162.6 197.4 91.8 70.1 Financial Trend by Fiscal Year Business profit is profit before tax excluding financial income and one-time items of a materially significant value. Segment profit is profit including financial income in business profit.
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54Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. FY2025 FY2026 (billions of yen) 1Q 2Q 1H 3Q 4Q 2H Full year 1Q 2Q 1H 3Q 4Q 2H Full year Steel Business 761.2 776.2 1,537.4 773.8 777.2 1,551.0 3,088.4 763.5 - - - - - - Engineering Business 135.3 151.7 287.0 148.3 164.4 312.7 599.7 147.3 - - - - - - Trading Business 338.7 308.8 647.5 345.9 339.6 685.5 1,333.0 380.6 - - - - - - Adjustments (120.0) (119.4) (239.4) (120.3) (122.2) (242.5) (481.9) (130.4) - - - - - - Revenue 1,115.3 1,117.3 2,232.6 1,147.6 1,159.0 2,306.6 4,539.2 1,161.1 - - - - - - Business Profit (A） 16.2 29.5 45.7 51.7 37.9 89.6 135.3 32.3 - - - - - - [Excluding Inventory Valuation etc.] [45.2] [48.5] [93.7] [49.7] [22.9] [72.6] [166.3] [14.3] - - - - - - Finance Income/Cost（B） (5.8) (5.7) (11.5) (6.7) (6.5) (13.2) (24.7) (6.3) - - - - - - Steel Business (12.1) 6.8 (5.3) 28.6 14.7 43.3 38.0 3.0 - - - - - - [Excluding Inventory Valuation etc.] [16.9] [25.8] [42.7] [26.6] [(0.3)] [26.3] [69.0] [(15.0)] - - - - - - Engineering Business 5.7 6.9 12.6 4.1 7.2 11.3 23.9 8.9 - - - - - - Trading Business 12.6 9.3 21.9 10.7 7.6 18.3 40.2 11.3 - - - - - - Adjustments 4.1 0.7 4.8 1.6 2.0 3.6 8.4 2.6 - - - - - - Segment Profit(A+B) 10.3 23.8 34.1 45.1 31.3 76.4 110.5 25.9 - - - - - - [Excluding Inventory Valuation etc.] [39.3] [42.8] [82.1] [43.1] [16.3] [59.4] [141.5] [7.9] - - - - - - Exceptional Items 0.0 0.0 0.0 0.0 (23.1) (23.1) (23.1) 15.0 - - - - - - Profit before Tax 10.3 23.8 34.1 45.1 8.2 53.3 87.4 40.9 - - - - - - Tax Expense and Profit (Loss) Attributable to Non-Controlling Interests (3.2) (4.2) (7.4) (10.9) 1.1 (9.8) (17.2) (9.7) - - - - - - Profit Attributable to Owners of Parent 7.1 19.5 26.6 34.2 9.3 43.5 70.1 31.2 - - - - - - Financial Trend by Quarter Business profit is profit before tax excluding financial income and one-time items of a materially significant value. Segment profit is profit including financial income in business profit.
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55Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. 222.4 162.8 296.2 236.3 166.3 400.0 25.88 24.10 23.45 21.95 21.37 21.00 218.4 460.7 517.3 513.5 503.0 400.6 69.3 165.8 53.0 52.2 173.6 231.0 64.2 84.7 216.3 232.0 37.8 (12.9) 416.4 235.8 298.2 135.3 135.3 27.01 27.65 26.72 29.03 30.52 26.55 25.83 28.80 26.90 27.97 28.67 28.44 27.36 28.14 28.46 26.31 26.73 22.76 25.88 24.10 23.45 21.95 21.37 Business profit (HD) Crude steel production (standalone) Business Profit JFE Holdings Financial Trend/ Crude steel production (by Fiscal Year) （billions of yen） (*) The bars for years prior to FY2017 represent ordinary profit based on J-GAAP. 8th MTBP (FY2027) Business Profit Segment profit ¥365.0 bn. (*) (Excluding inventory valuation, etc.) （million mt）
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56Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel 15.3 126.2 188.5 27.8 40.5 198.8 161.3 (8.7) (65.4) 323.7 146.8 202.7 36.3 38.0 27.97 28.67 28.44 27.36 28.14 28.46 26.31 26.73 22.76 25.88 24.10 23.45 21.95 21.37 10.00 15.00 20.00 25.00 30.00 ▲ 100 0 100 200 300 400 500 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 JFE Steel Segment Profit and Crude Steel Production Trends (by Fiscal Year) （billions of yen） （million mt） J-GAAP IFRS Crude Steel (Standalone) （right axis） Segment profit （left axis） （million mt） * Changed from Japanese GAAP to IFRS from FY2018
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57Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE EngineeringJFE Engineering Financial Trend (by Fiscal Year) 16.4 18.4 18.0 20.0 26.6 19.3 20.1 23.1 24.0 26.0 13.4 24.3 19.3 23.9 267.5 284.1 367.3 397.5 426.1 391.3 485.8 512.2 485.7 508.2 512.5 539.9 569.8 599.7 269.8 367.0 459.5 509.4 424.4 495.5 482.8 413.0 501.1 505.8 564.9 563.0 579.5 836.1 326.6 409.5 514.1 614.7 600.0 691.9 614.5 525.9 549.0 560.1 615.6 613.8 994.4 1,223.5 (700) (500) (300) (100) 100 300 500 700 900 1,100 0 10 20 30 40 50 60 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Revenue (right axis) （billions of yen）J-GAAP IFRS Order backlog (right axis) Orders (right axis) 11,000 Segment profit （left axis） • Transitioned from Japanese GAAP to IFRS in fiscal year 2018. • The bars for years prior to FY2017 represent ordinary profit based on J-GAAP. * Effective fiscal year 2024, the method for recognizing revenue from long-term comprehensive contracts will change from recognition upon order receipt to lump-sum recognition at the time of contract signing. （billions of yen）
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58Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Shoji 15.0 21.5 24.6 15.7 21.8 33.0 35.7 27.0 20.0 55.9 65.1 48.9 47.9 40.2 1,743.9 1,781.3 1,934.4 1,756.4 1,671.0 1,907.9 1,125.8 1,084.1 932.5 1,231.7 1,514.1 1,476.4 1,438.5 1,333.0 (900) (600) (300) 0 300 600 900 1,200 1,500 1,800 2,100 0 10 20 30 40 50 60 70 80 90 100 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 JFE Shoji Financial Trend (by Fiscal Year) Revenue (right axis) Segmet profit (left axis) （billions of yen）J-GAAP IFRS • Transitioned from Japanese GAAP to IFRS in fiscal year 2018. • The bars for years prior to FY2017 represent ordinary profit based on J-GAAP. （billions of yen）
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59Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Profit/Loss Analysis
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60Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel Unit FY2024 FY2025 FY2026 1Q 2Q 3Q 4Q Full year 1Q 2Q 3Q 4Q Full year 1Q 2Q 3Q 4Q Full year Revenue billions of yen 860.6 868.7 828.9 806.9 3,365.1 761.2 776.2 773.8 777.2 3,088.4 763.5 - - - - Segment Profit billions of yen 31.5 3.0 10.4 (8.6) 36.3 (12.1) 6.8 28.6 14.7 38.0 3.0 - - - - Excluding Inventory Valuation etc.* billions of yen 36.5 51.0 44.4 5.4 137.3 16.9 25.8 26.6 (0.3) 69.0 (15.0) - - - - ー ー ー ー Crude Steel (Standalone) million mt 5.48 5.55 5.53 5.39 21.95 5.28 5.52 5.32 5.25 21.37 5.25 - - - - Crude Steel (Consolidated) million mt 5.80 5.89 5.83 5.67 23.20 5.61 5.81 5.59 5.54 22.55 5.56 - - - - Shipment (Standalone) million mt 4.70 4.96 4.87 4.84 19.36 4.71 4.82 4.72 4.61 18.86 4.54 - - - - Export Ratio on Value Basis （Standalone） % 40.6 44.2 40.0 41.9 41.7 39.9 42.8 40.3 40.1 40.8 39.3 - - - - Average Sales Price (Standalone) 000 yen /tonne 139.2 131.5 127.0 124.0 130.3 120.4 119.2 120.0 123.4 120.7 124.2 - - - - Exchange Rate ¥/US$ 155.0 152.8 149.0 154.1 152.7 145.3 147.0 153.2 155.3 150.2 159.9 - - - - Exchange Rate (End of Term) ¥/US$ 161.1 142.7 158.2 149.5 149.5 144.8 148.9 156.6 159.9 159.9 162.4 - - - - ＊Excluding inventory valuation, carry over and foreign exchange valuation from segment profit JFE Steel Quarter Data
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61Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel 1) Cost ±0.0 2) Volume and Mix ±0.0 - Crude Steel Production 5.25 million mt 5.25 million mt 3) Spreads* (20.0) - Impact of raw material price fluctuations and timing differences in adjustments for selling prices, etc. 4) Inventory valuation, etc. ＋3.0 - Inventory valuation ＋11.0 (+ 2.0→+13.0) - Carry over -8.0 (+11.0→+ 3.0) - Foreign exchange valuation ±0.0 (+ 2.0→+ 2.0) 5) Others ＋5.3 - Group companies +1.0 (Domestic: -4.0, Overseas: ＋5.0 (India: +6.0)) - Others ＋4.3 JFE Steel Segment Profit Analysis (FY2025 4Q (Actual) vs FY2026 1Q (Actual)) Breakdown *Spreads including various prices (metals, energy, materials, logistics, labor costs, foreign exchange effects, etc.) Unit FY2025 4Q Actual FY2026 1Q Actual Crude Steel (Standalone) million mt 5.25 5.25 Shipment (Standalone) million mt 4.61 4.54 Average Sales Price 000 yen /mt 123.4 124.2 Exchange Rate ¥/US$ 155.3 159.9 （billions of yen） FY2025 4Q Actual FY2026 1Q Actual Change Segment Profit 14.7 3.0 (11.7) ＊Excluding Inventory Valuation, etc. (0.3) (15.0) (14.7) Impact of the situation in the Middle East on Costs: Approx. -15.0 (Including the group companies)
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62Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel 1) Cost +5.0 2) Volume and Mix +8.0 - Crude Steel Production 5.25 million mt Approx. 5.60 million mt 3) Spreads* +25.0 - Promoting an improvement in steel prices 4) Inventory valuation, etc. (6.0) - Inventory valuation -2.0 (+13.0→+11.0) - Carry over -1.0 (+ 3.0→+ 2.0) - Foreign exchange valuation -3.0 (+ 2.0→ - 1.0) 5) Others (8.0) - Group companies +1.0 (Domestic: -1.0, Overseas: ＋2.0 (India; +2.0)) - Others -9.0 (construction timing differences, depreciation, interest expense, and other matters) JFE Steel Segment Profit Analysis (FY2026 1Q (Actual) vs. FY2026 2Q (Forecast)) Breakdown *Spreads including various prices (metals, energy, materials, logistics, labor costs, foreign exchange effects, etc.) Unit FY 2026 1Q Actual FY 2026 2Q Forecast Crude Steel (Standalone) million mt 5.25 Approx. 5.60 Shipment (Standalone) million mt 4.54 Approx. 4.90 Average Sales Price 000 yen /mt 124.2 Approx. 134 Exchange Rate ¥/US$ 159.9 Approx. 160 （billions of yen） FY2026 1Q Actual FY2026 2Q Forecast Change Segment Profit 3.0 27.0 +24.0 ＊Excluding Inventory Valuation, etc. (15.0) (15.0) +30.0 No impact on costs from the situation in the Middle East (1Q to 2Q)
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63Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel 1) Cost +10.0 - Operational improvement, effects from investments, and other initiatives 2) Volume and Mix +5.0 - Crude Steel Production 10.57 million mt→Approx. 10.80 million mt 3) Spreads* (29.0) - Sluggish steel market conditions in domestic and overseas markets, surge in main raw materials prices - Rising costs due to the situation in the Middle East - Initiatives to improve steel product prices 4) Inventory valuation, etc. +13.0 - Inventory valuation: +28.0 (- 4.0→+24.0) - Carry over: -7.0 (+12.0→+ 5.0) - Foreign exchange valuation -8.0 (+ 9.0→+ 1.0) 5) Others (12.3) - Group Companies ±0 (Domestic: -17.0, Overseas +17.0 (India: +15.0)) - Others -12.3 (Depreciation, interest expense, and other matters) JFE Steel Segment Profit Analysis (FY2025 2H (Actual) vs. FY2026 1H (Forecast)) Breakdown *Spreads including various prices (metals, energy, materials, logistics, labor costs, foreign exchange effects, etc.) Unit FY2025 2H Actual FY2026 1H Forecast Crude Steel (Standalone) million mt 10.57 Approx. 10.80 Shipment (Standalone) million mt 9.33 Approx. 9.40 Average Sales Price 000 yen /mt 121.7 Approx. 129 Exchange Rate ¥/US$ 154.3 Approx. 160 （billions of yen） FY2025 2H Actual FY2026 1H Forecast Change Segment Profit 43.3 30.0 (13.3) ＊Excluding Inventory Valuation, etc. 26.3 0.0 (26.3) Impact of the situation in the Middle East on Costs: Approx. -30.0 (Including the group companies)
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64Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel 1) Cost +20.0 - Operational improvement, effects from investments, and other initiatives 2) Volume and Mix +7.0 - Crude Steel Production 10.80 million mt → Approx. 10.80 million mt - Expansion of high-value-added products 3) Spreads* (66.0) - Sluggish steel market conditions in domestic and overseas markets, surge in main raw materials prices - Rising costs due to the situation in the Middle East - Initiatives to improve steel product prices 4) Inventory valuation, etc. +78.0 - Inventory valuation +66.0 (-42.0→＋24.0) - Carry over + 8.0 (- 3.0→ ＋ 5.0) - Foreign exchange valuation + 4.0 (- 3.0→ ＋ 1.0) 5) Others (3.7) - Group Companies +9.0 (Domestic: -4.0, Overseas: +13.0 (India: +15.0)) - Others -12.7 (Depreciation, interest expense, and other matters ） JFE Steel Segment Profit Analysis (FY2025 1H (Actual) vs. FY2026 1H (Forecast)) Breakdown *Spreads including various prices (metals, energy, materials, logistics, labor costs, foreign exchange effects, etc.) Unit FY2025 1H Actual FY2026 1H Forecast Crude Steel (Standalone) million mt 10.80 Approx. 10.80 Shipment (Standalone) million mt 9.53 Approx. 9.40 Average Sales Price 000 yen /mt 119.8 Approx. 129 Exchange Rate ¥/US$ 146.2 Approx. 160 （billions of yen） FY2025 1H Actual FY2026 1H Forecast Change Segment Profit (5.3) 30.0 +35.3 ＊Excluding Inventory Valuation, etc. 42.7 0.0 (42.7) Impact of the situation in the Middle East on Costs: Approx. -30.0 (Including the group companies)
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65Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Appendix (3) Business Environmental Indicators
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66Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel [Domestic Market Environment] Combined Inventories of HR, CR and Coated Steel Sheet s 0 1 2 3 4 5 0 1,000 2,000 3,000 4,000 5,000 Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan 2021 2022 2023 2024 2025 2026 2027 INVENTORIES Manufacturer Whole Saler Coil Center Inventory Ratio (Right Axis) May. 2026 Apr. 2026 May. 2025MoM YoY Inventories (000 mt) 3,993 +110 (+2.8%) -8 (-0.2%) 3,883 4,001 Inventory ratio (month) 2.90 -0.06 +0.03 2.97 2.87 (000 mt) (month)
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67Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel 0.5 1.0 1.5 2.0 2.5 3.0 3.5 200 250 300 350 400 450 500 Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan 2021 2022 2023 2024 2025 2026 2027 Inventories of plate (plate shear) Inventory ratio (right axis) 1.5 2.0 2.5 3.0 3.5 4.0 0 50 100 150 200 250 Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan 2021 2022 2023 2024 2025 2026 2027 Inventories of wide flange shapes Shipment Inventory ratio (right axis) Jun. 2026 May. 2026 Jun. 2025MoM YoY Inventories (000 mt) 215.5 -3.6 (-1.6%) +7.6 (+3.7%) 219.1 207.9 Inventory ratio (month) 3.3 -0.5 +0.2 3.8 3.1 Mar. 2026 Apr. 2026 May. 2025MoM YoY Inventories (000 mt) 344 +3 (+1.0%) -8 (-2.3%) 341 352 Inventory ratio (month) 2.7 +0.3 +0.0 2.4 2.7 [Domestic Market Environment ] Inventories of Plate (Plate Shear) and Wide Flange Shapes (month)(000 mt) (month)(000 mt)
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68Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel [Domestic Market Environment] Trend of Imported Steel (Ordinary Steel / By country) 0 50 100 150 200 250 300 350 400 450 500 Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan 2021 2022 2023 2024 2025 2026 2027 Imported Steel S. Korea China Taiwan Others Apr. 2026 Mar. 2026 Apr. 2025MoM YoY Imported steel (000 mt) 330 -48 (-12.6%) -79 (-19.2%) 378 409 (000 mt)
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69Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel 40 50 60 70 80 90 100 110 120 JanApr Jul OctJanApr Jul OctJanApr Jul OctJanApr Jul OctJanApr Jul OctJanApr Jul OctJanApr Jul OctJanApr Jul OctJanApr Jul OctJanApr Jul OctJan 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Imported Steel Price [Domestic Market Environment] Trend of Imported Steel (Ordinary Steel ) (000 yen / tonne) Data: The Japan Iron and Steel Federation Import Steel from S. Korea
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70Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel 0 20 40 60 80 100 120 0 2 4 6 8 10 12 Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan 2021 2022 2023 2024 2025 2026 2027 Export (left axis) Import (left axis) Crude steel production (right axis)(million mt) (million mt) Jun. 2026 (monthly) Apr. 2026 to Jun. 2026MoM YoY Crude steel (million mt) 83.7 -0.8% 251.7 -2.7% Export (million mt) 10.3 -0.2% 30.2 -1.8% [Overseas Market Environment] Crude Steel & I m/Export, China
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71Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel -300.0% -250.0% -200.0% -150.0% -100.0% -50.0% 0.0% 50.0% 100.0% 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan 2021 2022 2023 2024 2025 2026 2027 YEAR ON YEAR INVENTORIES Bar Rod and Wire Plate HR CR Change YoY (Right Axis) Jun. 2026 May. 2026 Jun. 2025MoM YoY Inventories (million mt) 11.4 +0.2 (+1.4%) +2.4 (+26.2%) 11.3 9.1 [Overseas Market Environment] Inventories in China by Produc t （million mt）
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72Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel 0 100 200 300 400 500 600 700 800 900 1,000 0 100 200 300 400 500 600 700 800 900 1,000 （US$/t) （US$/t) [Overseas Market Environment] Metal Spread Trend (China Spot Basis ) HRC Price Metal Spread Metal Spread = HRC Price – Raw Materials Cost • HRC Price: Chinese Spot basis Raw Materials Cost: Calculated from market price of Iron Ore and Hard Coking Coal
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73Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel 600 1,000 1,400 1,800 2,200 2,600 Jan.2021 Apr.2021 Jul.2021 Oct.2021 Jan.2022 Apr.2022 Jul.2022 Oct.2022 Jan.2023 Apr.2023 Jul.2023 Oct.2023 Jan.2024 Apr.2024 Jul.2024 Oct.2024 Jan.2025 Apr.2025 Jul.2025 Oct.2025 Jan.2026 Apr.2026 Jul.2026 Oct.2026 Jan.2027 0 5 10 15 20 25 30 35 40 Jan.2021 Apr.2021 Jul.2021 Oct.2021 Jan.2022 Apr.2022 Jul.2022 Oct.2022 Jan.2023 Apr.2023 Jul.2023 Oct.2023 Jan.2024 Apr.2024 Jul.2024 Oct.2024 Jan.2025 Apr.2025 Jul.2025 Oct.2025 Jan.2026 Apr.2026 Jul.2026 Oct.2026 Jan.2027 (￠/lb) (US$/t) (US$/lb) (US$/t) 60 80 100 120 140 160 180 200 220 240 Jan.2021 Apr.2021 Jul.2021 Oct.2021 Jan.2022 Apr.2022 Jul.2022 Oct.2022 Jan.2023 Apr.2023 Jul.2023 Oct.2023 Jan.2024 Apr.2024 Jul.2024 Oct.2024 Jan.2025 Apr.2025 Jul.2025 Oct.2025 Jan.2026 Apr.2026 Jul.2026 Oct.2026 Jan.2027 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Jan.2021 Apr.2021 Jul.2021 Oct.2021 Jan.2022 Apr.2022 Jul.2022 Oct.2022 Jan.2023 Apr.2023 Jul.2023 Oct.2023 Jan.2024 Apr.2024 Jul.2024 Oct.2024 Jan.2025 Apr.2025 Jul.2025 Oct.2025 Jan.2026 Apr.2026 Jul.2026 Oct.2026 Jan.2027 [Raw Materials] Trend of Sub Materials’ Market Price FeCr Zn FeMn Mo
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74Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Steel 0 200 400 600 800 1000 1200 10 30 50 70 90 110 130 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Oct-24 Jan-25 Apr-25 Jul-25 Oct-25 Jan-26 Apr-26 Jul-26 Oct-26 Jan-27 WTI crude oil (left axis) Bunker (Japan VLSFO (right axis) Bunker (Japan 380CST) (right axis) Crude Oil, Bunker Scrap Spot Bulker (Crude oil: US$/bbl) (Bunker: US$/tonne) (yen/tonne) (US$/B) 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Oct-24 Jan-25 Apr-25 Jul-25 Oct-25 Jan-26 Apr-26 Jul-26 Oct-26 Jan-27 10,000 20,000 30,000 40,000 50,000 60,000 70,000 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Oct-24 Jan-25 Apr-25 Jul-25 Oct-25 Jan-26 Apr-26 Jul-26 Oct-26 Jan-27 [Raw Materials] Trend of Market Price of Others 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Oct-24 Jan-25 Apr-25 Jul-25 Oct-25 Jan-26 Apr-26 Jul-26 Oct-26 Jan-27 LNG(yen/tonne) Japan LNG import prices (customs statistics) 0 10 20 30 40 Oct-24 Jan-25 Apr-25 Jul-25 Oct-25 Jan-26 Apr-26 Jul-26 Oct-26 Jan-27 Reference: Spot LNG prices for Northeast Asia （US$/mmbtu）
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75Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE SteelAdoption Status of G X Steel, "JGreeX TM" JFE Steel began supplying GX Steel “JGreeX®,” which significantly reduces GHG emissions during the manufacturing process compared to conventional products, in the first half of FY2023. In FY2024, the adoption increased across all sectors due to the growing demand for GX Steel. Sales volume for FY2025 met the KPI (over 100,000 metric tons) Imabari Shipbuilding Iwagi Zosen Kumagai Gumi Sumitomo Corporation Tomakomai Kuribayashi Transportation Nippon Fastener Fujiki Tekkou Mitsubishi Estate MITSUWA TEKKEN YASHIMANADA RN CONSTRUCTIO SUNSCO (Vietnam) Industrial machinery General consumer goods Transformers Office buildings, logistics warehouses, and factory buildings ISUZU MOTORS LIMITED TOYOTA MOTOR CORPORATION Nissan Motor Co., Ltd. SUZUTOYO SEIKO CO., Ltd. Hock Seng Hoe (Singapore) Mycron Steel Berhad (Malaysia) JFE Shoji Pipe & Fitting Corporation Yokogawa Bridge Corp. (Okayama) JFE Engineering (Yokohama) AICHI ELECTRIC Co., Ltd. Eaton Corporation (USA) Transformer manufacturers (Europe) MoNo factory Co.,Ltd. Yamaha Motor Co., Ltd. Takasago Metal Works Co.,Ltd. EASTERN CAR LINER, LTD. Kawasaki Kisen Kaisha, Ltd. KAWASAKI KINKAI KISEN KAISHA,LTD. MOL Drybulk Ltd. Daiichi Chuo Kisen Kaisha TSUNEISHI SHIPBUILDING Co., Ltd. TOKO KAIUN KAISHA, LTD. NYK Bulk Project IMABARI SHIPBUILDING CO.,LTD. ONOMICHI DOCKYARD CO., LTD. KOIKE SHIPBUILDING & SHIPPING. CO.,Ltd Namikata Shipyard HIGAKI SHIPBUILDING CO.,LTD. Automobile Distribution Bridges Marine vessels Automobiles Steel sheets Electrical steel sheets Construction materials Steel plates Steel rods Steel pipesCan steel
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76Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE SteelEfforts to Create GX Steel Market The government has clarified its intention to begin pilot projects for public works utilizing GX Steel starting in FY 2026, and to gradually expand the scope of these projects. At the same time, demand-stimulation measures have been expanded, including making GX Steel eligible for support under the support program for projects constructing new "ZEB" buildings using low -carbon building materials and the support program for the introduction of zero-emission ships and other vessels . Furthermore, a framework for evaluating the procurement of GX products, including GX Steel, has been formulated. In the steel industry, we will continue our international standardization efforts to ensure the global credibility of GX Steel, while also collaborating with demand-side industries to advance initiatives aimed at resolving challenges related to environmental value assessment and data sharing. (Domestic) Emissions trading system (from Apr. 2026) Started goods procurement from Apr. 2025 Started operation of CEV(Clean Energy Vehicle) subsidy from Apr. 2025 Product-specific CFP calculation guidelines for steel product Measures to stimulate demand for GX (scope, definitions, budgetary measures, evaluation systems, etc.) ★ Under discussion to reflect Japan's approach to GX Steel Incorporation into GHG Protocol revision Incorporation into the ISO standard Scheduled for revision in FY2028 ★ (Europe) CBAM full application (from Jan. 2026) GX Steel GuidelinesGreen Steel Guidelines Version 3.0 COP30 ☆ (Nov) ☆ (Oct 28) ☆ (Oct.28) Guideline revision (incorporating stakeholder feedback) ☆ Guidelines formulation (Worldsteel) Launch pilot projects for public works and gradually expand their scope. Implement on a large scale Program for Projects Constructing New "ZEB" Buildings Using Low - Carbon Building Materials Business to support the introduction of zero - emission vessels and other technologies ★ ★ Regulations/ Systems GX value visualization International standardization Priority procurement/ Purchase support Regulatory measures Act on Promoting Green Procurement Procurement support Public works Cabinet decision (Jan. 2025) Systematization (Jan. 2025) Study Group on Green Steel for GX Summary (Jan. 2025) FY2025 FY2026 FY2027 FY2030 GX Promotion Act revision
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77Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. JFE Engineering Business field FY2025 Actual value FY2026 Forecast Change Main orders received in Q4 of FY2026 Orders Waste to Resource 385.4 230.0 (155.4) Construction of overseas waste treatment facilities (2 facilities in India) Carbon neutral 321.7 240.0 (81.7) Long-term maintenance of domestic gas engine power generation facilities [Aichi] Construction of a domestic high-pressure hydrogen pipeline [Kanagawa] Core infrastructure 128.9 130.0 +1.1 Construction of bridge in Japan (Saho Bridge [Osaka])) Renovation of bridges in Japan (Kurushima-Kaikyo Bridge [Ehime]) Total 836.1 600.0 (236.1) Order backlog 1,223.5 1,200.0 (23.5) JFE Engineering Orders by Business Field First-quarter orders totaled 177.6 billion yen. The order backlog remains at a high level. （billions of yen）
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78Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Appendix (4) Published Materials (Links)
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79Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. Links of Published Material Release Materials (Japanese) Materials (English) Long-term vision “JFE Vision 2035”/ Eighth Medium-term Business Plan 8th May 2025 Japanese English JFE Group Environmental Management Strategy 29th May 2025 Japanese English JFE Steel Corporation Overseas Business Strategy 8th August 2025 Japanese English JFE GROUP REPORT 2025 26th September 2025 Japanese English JFE Group Sustainability Report 2025 26th September 2025 Japanese English JFE Engineering Business Briefing 25th November 2025 Japanese English Integrated Steel Plant Joint Venture with JSW Steel in India 4th December 2025 Japanese English DX Report 2025 4th February 2026 Japanese English
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Copyright © 2026 JFE Holdings, Inc. All Rights Reserved. This presentation material is not a disclosure material under the Financial Instruments and Exchange Act and does not guarantee the accuracy or completeness of the information. The forecasts presented are based on information received at the time of the briefing and include uncertainties. Therefore, please refrain from making investment decisions based solely on this document. Our company shall not be liable for any damages arising as a result of the use of this document.