Interim report
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JFE Holdings ' Financial Results for First Quarter of Fiscal Year 2026 Ending March 31 , 2027 ― All financial information has been prepared in accordance with International Financial Reporting Standards ( IFRS ) — ( Note : The following is an English translation of an original Japanese document ) Official name : Listings : Code : English URL : Representative : Contact : Phone : Preparation of supplementary materials for quarterly results : Quarterly results briefing : August 5 , 2026 JFE Holdings , Inc. Tokyo stock exchange 5411 www.jfe-holdings.co.jp/en Yoshihisa Kitano , President and CEO Tomoko Takami , Manager , Public Relations Section Investor Relations and Corporate Communications Department + 81-3-3597-3842 Yes Yes ( Figures are rounded down to the nearest million yen ) 1. Consolidated Results in First Quarter of Fiscal 2026 ( April 1 to June 30 , 2026 ) ( 1 ) Consolidated Operating Results ( cumulative total ) ( Percentages indicate year on year change ) Revenue ( millions of yen ) % Business profit ( millions of yen ) % Profit before tax ( millions of yen ) Profit attributable % Profit ( millions of yen ) % to owners of parent ( millions of yen ) % Compre- hensive income ( millions of yen ) % 1Q FY 2026 1,161,178 4.1 32,313 98.7 40,985 295.0 32,267 315.0 31,229 338.1 46,131 1Q FY 2025 1,115,313 ( 7.9 ) 16,261 ( 71.4 ) 10,377 ( 73.8 ) 7,775 ( 71.9 ) 7,128 ( 74.1 ) ( 26,290 ) Basic earnings per share ( yen ) Diluted earnings per 1Q FY 2026 1Q FY 2025 49.09 11.21 share ( yen ) 46.74 10.82 Note : Business profit is profit before tax excluding financial income and one - time items of a materially significant value . ( 2 ) Consolidated Financial Position Total assets ( millions of yen ) Total equity ( millions of yen ) Total equity attributable to owners of parent ( millions of yen ) Total equity attributable to owners of parent ( % ) End 1Q FY 2026 End FY 2025 6,185,920 5,895,238 2,698,432 2,680,190 2,635,917 42.6 2,619,535 44.4 2. Dividends Dividend per share ( yen ) Interim Year - end FY 2025 FY 2026 ( forecast ) 80.00 40.00 40.00 80.00 40.00 40.00 Note : Revisions to dividend forecast announced most recently : Yes
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3. Forecasts of Consolidated Financial Results in Fiscal 2026 (April 1, 2026 to March 31, 2027) (Percentages represent changes from same period of previous fiscal year) Revenue (millions of yen) % Business profit (millions of yen) % Profit before tax (millions of yen) % Profit attributable to owners of parent (millions of yen) % Basic earnings per share (yen) 1H FY 2026 2,380,000 6.6 90,000 96.7 85,000 148.7 65,000 143.7 102.18 FY 2026 4,850,000 6.8 215,000 58.8 190,000 117.3 150,000 113.8 235.80 Note: Revisions to consolidated financial results forecasts announced most recently: Yes
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Notes 1. Significant change in scope of consolidation: Yes 1) New company: None 2) Excluded company: One (Inner Mongolia Erdos EJM Manganese Alloys Co., Ltd.*) * Inner Mongolia Erdos EJM Manganese Alloys Co., Ltd. is an Equity method associate 2. Changes in accounting policies and accounting estimates 1) Changes in the accounting policies required by IFRS: No 2) Changes in the accounting policies other than 1) above: No 3) Changes in accounting estimates: No 3. Number of outstanding shares (common stock) 1) Outstanding shares at the end of the term (including treasury stock) As of June 30, 2026: 639,438,399 shares As of March 31, 2026: 639,438,399 shares 2) Treasury stock at the end of the term As of June 30, 2026: 3,306,746 shares As of March 31, 2026: 3,302,081 shares 3) Average number of shares during the term 1Q Fiscal 2026: 636,133,742 shares 1Q Fiscal 2025: 636,075,920 shares Review of the accompanying quarterly consolidated financial statements by a certified public accountant or an auditing firm: None Explanation of Appropriate Use of Results Forecasts, and Other Matters of Note 1. Forecasts and other forward-looking statements h erein are based on information available on the dat e of publication of this document as well as rational assumptions that we have made regarding certain factors. Actual results may vary significantly from these forecasts due to a wide range of circumstances. 2. The supplementary financial data will be disclosed today via TDnet and published on our website.
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Attachments 1. Overview of Business Performance, etc. for the First Quarter of Fiscal Year 2026 Ending March 31, 2027 ········ 2 2. Condensed Quarterly Consolidated Financial Statements and Notes (1) Condensed Quarterly Consolidated Statement of Financial Position ····································· ·············· 3 (2) Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated Statement of Comprehensive Income (First Quarter) ···················································· ··················· 5 (3) Condensed Quarterly Consolidated Statement of Changes in Equity (First Quarter) ······················ ········· 7 (4) Notes to Condensed Quarterly Consolidated Financial Statements ······································· ·············· 9 Notes on Segment Information ······················ ··················································· ·························· 9 Notes Pertaining to the Presumption of a Going Concern ··············································· ················ 10 Notes on Condensed Quarterly Consolidated Statement of Cash Flow ····································· ········· 10 Material subsequent events ······················· ··················································· ·························· 10 3. Supplementary Information ························· ··················································· ······························· 11
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1. Overview of Business Performance, etc. for the First Quarter of Fiscal Year 2026 Ending March 31, 2027 For an overview of business performance and other r elated matters, please refer to the supplementary e xplanation materials for the financial results. The supplementary financial data will be disclosed today via TDnet and published on our website.
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2. Condensed Quarterly Consolidated Financial Statements and Notes (1) Condensed Quarterly Consolidated Statement of Financial Position (millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and cash equivalents 167,807 180,410 Trade and other receivables 668,994 688,817 Contract assets 155,769 179,021 Inventories 1,188,142 1,224,868 Income taxes receivable 14,605 17,742 Other financial assets 22,956 17,385 Other current assets 86,462 110,257 Total current assets 2,304,738 2,418,502 Non-current assets Property, plant and equipment 2,039,974 2,071,055 Goodwill 31,348 40,236 Intangible assets 208,881 203,125 Right-of-use asset 111,370 111,748 Investment property 53,317 51,252 Investments accounted for using equity method 816,153 958,483 Retirement benefit asset 35,794 36,747 Deferred tax assets 44,072 40,344 Other financial assets 225,997 228,936 Other non-current assets 23,590 25,487 Total non-current assets 3,590,500 3,767,418 Total assets 5,895,238 6,185,920
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(millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities and equity Liabilities Current liabilities Trade and other payables 571,142 558,627 Bonds payable, borrowings, and lease obligations 443,307 786,124 Contract liabilities 38,964 52,355 Income taxes payable, etc. 15,096 6,222 Provisions 11,906 13,512 Other financial liabilities 131,952 104,894 Other current liabilities 277,021 228,590 Total current liabilities 1,489,391 1,750,327 Non-current liabilities Bonds payable, borrowings, and lease obligations 1,516,078 1,525,963 Retirement benefit liability 85,930 85,964 Provisions 23,185 22,597 Deferred tax liabilities 10,023 13,940 Other financial liabilities 54,516 53,454 Other non-current liabilities 35,923 35,240 Total non-current liabilities 1,725,657 1,737,160 Total liabilities 3,215,048 3,487,488 Equity Share capital 171,310 171,310 Capital surplus 579,387 579,507 Retained earnings 1,646,021 1,654,422 Treasury shares (12,608) (12,616) Other components of equity 235,423 243,291 Total equity attributable to owners of parent 2,619,535 2,635,917 Non-controlling interests 60,654 62,515 Total equity 2,680,190 2,698,432 Total liabilities and equity 5,895,238 6,185,920
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(2) Condensed Quarterly Consolidated Statement of Profit or Loss and Condensed Quarterly Consolidated Statement of Comprehensive Income Condensed Quarterly Consolidated Statements of Profit or Loss (First Quarter) (millions of yen) First Quarter of Fiscal 2025 (April 1, 2025 – June 30, 2025) First Quarter of Fiscal 2026 (April 1, 2026 – June 30, 2026) Revenue 1,115,313 1,161,178 Cost of sales (1,001,585) (1,037,136) Gross profit 113,727 124,041 Selling, general and administrative expenses (102,363) (105,496) Share of profit of entities accounted for using equity method 12,996 19,204 Other income 7,171 6,358 Other expenses (15,270) (11,794) Business profit 16,261 32,313 Gain on sales of land － 15,046 Operating profit 16,261 47,360 Finance income 997 959 Finance costs (6,882) (7,334) Profit before tax 10,377 40,985 Income tax expense (2,601) (8,717) Profit 7,775 32,267 Profit attributable to Owners of parent 7,128 31,229 Non-controlling interests 646 1,038 Profit 7,775 32,267 Earnings per share Basic earnings per share (yen) 11.21 49.09 Diluted earnings per share (yen) 10.82 46.74
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Condensed Quarterly Consolidated Statement of Comprehensive Income (First Quarter) (millions of yen ) First Quarter of Fiscal 2025 (April 1, 2025 – June 30, 2025) First Quarter of Fiscal 2026 (April 1, 2026 – June 30, 2026) Profit 7,775 32,267 Other comprehensive income Items that will not be reclassified to profit or loss Remeasurements of defined benefit plans 279 3,496 Net change in fair value of equity instruments designated as measured at fair value through other comprehensive income (1,456) 4,986 Share of other comprehensive income of investments accounted for using equity method (4,113) (3,932) Total of items that will not be reclassified to profit or loss (5,291) 4,550 Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations (7,875) 7,738 Effective portion of cash flow hedges (1,437) (81) Share of other comprehensive income of investments accounted for using equity method (19,461) 1,655 Total of items that may be reclassified to profit or loss (28,774) 9,312 Total other comprehensive income (34,066) 13,863 Comprehensive income (26,290) 46,131 Comprehensive income attributable to Owners of parent (25,991) 42,809 Non-controlling interests (299) 3,321 Comprehensive income (26,290) 46,131
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(3) Condensed Quarterly Consolidated Statement of Changes in Equity First Quarter of Fiscal 2025 (April 1, 2025 – June 30, 2025) (millions of yen) Equity attributable to owners of parent Share capital Capital surplus Retained earnings Treasury shares Other components of equity Share acquisition rights Remeasurements of defined benefit plans Net change in fair value of equity instruments designated as measured at fair value through other comprehensive income Balance as of April 1, 2025 171,310 579,514 1,607,951 (13,736) 3,081 － 50,722 Profit － － 7,128 － － － － Other comprehensive income － － － － － 430 (5,156) Comprehensive income － － 7,128 － － 430 (5,156) Purchase of treasury shares － － － (7) － － － Disposal of treasury shares － (0) － 1 － － － Dividends － － (31,845) － － － － Share-based payment transactions － 106 － － － － － Change in scope of consolidation － － － － － － － Changes in ownership interest in subsidiaries － － － － － － － Transfer from other components of equity to retained earnings － － 2,367 － － (430) (1,937) Transfers to non-financial assets － － － － － － － Other － － － － － － － Total transactions with owners － 106 (29,477) (6) － (430) (1,937) Balance as of June 30, 2025 171,310 579,620 1,585,602 (13,743) 3,081 － 43,629 Equity attributable to owners of parent Non- controlling interests Total equity Other components of equity Total Exchange differences on translation of foreign operations Effective portion of cash flow hedges Total Balance as of April 1, 2025 123,616 7,118 184,539 2,529,578 57,289 2,586,868 Profit － － － 7,128 646 7,775 Other comprehensive income (26,942) (1,452) (33,120) (33,120) (945) (34,066) Comprehensive income (26,942) (1,452) (33,120) (25,991) (299) (26,290) Purchase of treasury shares － － － (7) － (7) Disposal of treasury shares － － － 0 － 0 Dividends － － － (31,845) (1,510) (33,355) Share-based payment transactions － － － 106 － 106 Change in scope of consolidation － － － － 16 16 Changes in ownership interest in subsidiaries － － － － 598 598 Transfer from other components of equity to retained earnings － － (2,367) － － － Transfers to non-financial assets － 340 340 340 － 340 Other － － － － 747 747 Total transactions with owners － 340 (2,026) (31,405) (148) (31,553) Balance as of June 30, 2025 96,674 6,007 149,391 2,472,182 56,842 2,529,024
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First Quarter of Fiscal 2026 (April 1, 2026 – June 30, 2026) (millions of yen) Equity attributable to owners of parent Share capital Capital surplus Retained earnings Treasury shares Other components of equity Share acquisition rights Remeasurements of defined benefit plans Net change in fair value of equity instruments designated as measured at fair value through other comprehensive income Balance as of April 1, 2026 171,310 579,387 1,646,021 (12,608) 3,081 － 61,128 Profit － － 31,229 － － － － Other comprehensive income － － － － － 3,378 (810) Comprehensive income － － 31,229 － － 3,378 (810) Purchase of treasury shares － － － (8) － － － Disposal of treasury shares － (0) － 0 － － － Dividends － － (25,488) － － － － Share-based payment transactions － 117 － － － － － Change in scope of consolidation － － － － － － － Changes in ownership interest in subsidiaries － 2 － － － － － Transfer from other components of equity to retained earnings － － 2,661 － － (3,378) 717 Transfers to non-financial assets － － － － － － － Other － － － － － － － Total transactions with owners － 120 (22,827) (8) － (3,378) 717 Balance as of June 30, 2026 171,310 579,507 1,654,422 (12,616) 3,081 － 61,036 Equity attributable to owners of parent Non- controlling interests Total equity Other components of equity Total Exchange differences on translation of foreign operations Effective portion of cash flow hedges Total Balance as of April 1, 2026 154,577 16,636 235,423 2,619,535 60,654 2,680,190 Profit － － － 31,229 1,038 32,267 Other comprehensive income 5,512 3,499 11,580 11,580 2,282 13,863 Comprehensive income 5,512 3,499 11,580 42,809 3,321 46,131 Purchase of treasury shares － － － (8) － (8) Disposal of treasury shares － － － 0 － 0 Dividends － － － (25,488) (1,012) (26,500) Share-based payment transactions － － － 117 － 117 Change in scope of consolidation － － － － (399) (399) Changes in ownership interest in subsidiaries － － － 2 (14) (12) Transfer from other components of equity to retained earnings － － (2,661) － － － Transfers to non-financial assets － (1,051) (1,051) (1,051) － (1,051) Other － － － － (34) (34) Total transactions with owners － (1,051) (3,712) (26,428) (1,460) (27,888) Balance as of June 30, 2026 160,089 19,085 243,291 2,635,917 62,515 2,698,432
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(3) Notes to Condensed Quarterly Consolidated Financial Statements Notes on Segment information (1) Overview of reportable segments The Group organized under JFE Holdings executed com mercial activities through three operating companie s—JFE Steel Corporation, JFE Engineering Corporation and JFE Shoji Corporation—in accordance with the charac teristics of their respective businesses. Consolidated reporting segments, one for each operating company, were characterized by their constituent products and services. Each segment had its own respective products and se rvices. The steel business produced and sold variou s steel products, processed steel products and raw material s, and provided transportation and other related bu sinesses such as facility maintenance and construction. The engineering business handled engineering for steel structures, industrial machines, energy, and environment, recycling and electricity retailing. The trading business purchased, processed and distributed steel products, raw materials for steel production, nonferrous metal products, and food, etc. (2) Information on reportable segments The Group assesses segment performance on the basis of segment profit. Segment profit is profit before tax excluding one-time items of a materially significant value. Intersegment transactions are based on market prices and the like. First Quarter of Fiscal 2025 (cumulative total: April 1, 2025 to June 30, 2025) (millions of yen ) Steel Engineering Trading Total Adjustments 1 Amount recorded in consolidated financial statements Revenue Revenue from external customers 679,154 131,650 304,507 1,115,313 － 1,115,313 Intersegment revenue 82,064 3,710 34,229 120,004 (120,004) － Total 761,219 135,361 338,736 1,235,317 (120,004) 1,115,313 Segment profit (12,150) 5,752 12,614 6,216 4,160 10,377 Profit before tax 10,377 1 Adjustments are as follows. Adjustments to segment profit include corporate profit not allocated to a reportable segment: 534 million yen, share of profit of entities accounted for using equity method relat ed to Japan Marine United Corporation: 2,576 millio n yen; elimination of other intersegment transactions: 1,049 million yen. Corporate profit is profit of the Company. First Quarter of Fiscal 2026 (cumulative total: April 1, 2026 to June 30, 2026) (millions of yen ) Steel Engineering Trading Total Adjustments 1 Amount recorded in consolidated financial statements Revenue Revenue from external customers 676,148 142,550 342,479 1,161,178 － 1,161,178 Intersegment revenue 87,436 4,831 38,204 130,471 (130,471) － Total 763,584 147,382 380,683 1,291,650 (130,471) 1,161,178 Segment profit 3,051 8,940 11,332 23,324 2,614 25,938 Gain on sales of land 15,046 Profit before tax 40,985 1 Adjustments are as follows. Adjustments to segment profit include corporate profit not allocated to a reportable segment: 145 million yen, share of profit of entities accounted for using equity method relat ed to Japan Marine United Corporation: 2,029 millio n yen; elimination of other intersegment transactions: 439 million yen. Corporate profit is profit of the Company.
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Notes Pertaining to the Presumption of a Going Concern There is no item for this period. Notes on Condensed Quarterly Consolidated Statement of Cash Flow Condensed consolidated statement of cash flow for t he first quarter of the current fiscal year has not been prepared. Depreciation and amortization, including amortization of intangible assets, for the first quarter of t he current fiscal year are as follow: (millions of yen) First Quarter of Fiscal 2025 (April 1, 2025 – June 30, 2025) First Quarter of Fiscal 2026 (April 1, 2026 – June 30, 2026) Depreciation and amortization 66,779 68,207 Material subsequent events JFE Steel Corporation (hereinafter, “JFE Steel”), one of the subsidiaries of the steel business, and the Company, at their respective board of directors meetings held on July 30, 2026 and August 5, 2026, resolved to transfer a non-current asset held by JFE Steel and concluded a transfer agreement as of August 5, 2026. (i) Reasons for the transfer The asset to be transferred is a portion of the land that was used as a raw materials yard for the steelmaking business. However, JFE Steel and the Company have decided to transfer the asset as part of the land-use conversion plan in the Keihin district of East Japan Works of JFE Steel, with the aim of promoting its effective utilization, including through the development of a next-generation logistics hub, and also for the purpose of securing investment funds for future land-use conversion. (ii) Details of the asset to be transferred Nature and location of the asset Area Gain on trans fer Current status Land Ohgishima, Kawasaki-ku, Kawasaki, Kanagawa Prefecture Land: 181,976 ㎡ 45.0 billion yen (estimate) Former raw materials yard (unused land) Notes: 1. Pursuant to the agreement with the purchaser, the transfer price and the carrying amount will not be disclosed, but the transfer will be made at an appropriate price that reflects the market price. 2. The gain on transfer is an estimate obtained by deducting the carrying amount and estimated costs of transfer from the transfer price. 3. The dispositions are scheduled to be carried out in four separate tranches, and the gain on disposition is expected to be recognized in the fiscal year in which each one is completed. The estimated amounts of the gain on disposition by fiscal year are as follows, as of now: - FY2027: 23.0 billion yen - FY2033: 9.0 billion yen - FY2034: 9.0 billion yen - FY2035: 4.0 billion yen (iii) Overview of the purchaser In accordance with an agreement with the purchaser, the identity of the transferee is not disclosed. Note that the purchaser is a domestic corporation, and there are no capital, personnel, business, or related party relationships to be disclosed between JFE Steel and the purchaser. (iv) Schedule of the transfer Conclusion date of the transfer agreement: August 5, 2026 Date of executing the transfer: First land transfer: 89,414 ㎡ March, 2028 (planned) Second land transfer: 35,765 ㎡ December, 2033 (planned) Third land transfer: 35,765 ㎡ December, 2034 (planned) Fourth land transfer: 17,883 ㎡ December, 2035 (planned)
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3. Supplementary information (1) Consolidated Results in First Quarter and Earnings Forecasts for Fiscal 2026 (billions of yen) Fiscal 2025 Fiscal 2026 Change Fiscal 2026 Forecast (May 8) 1Q 1H Full year 1Q 1H Full year 1Q 1H Full year Full year Steel Business 761.2 1,537.4 3,088.4 763.5 1,640.0 3,350.0 2.3 102.6 261.6 3,280.0 Engineering Business 135.3 287.0 599.7 147.3 290.0 620.0 12.0 3.0 20.3 620.0 Trading Business 338.7 647.5 1,333.0 380.6 700.0 1,400.0 41.9 52.5 67.0 1,400.0 Adjustments (120.0) (239.4) (481.9) (130.4) (250.0) (520.0) (10.4) (10.6) (38.1) (500.0) Revenue 1,115.3 2,232.6 4,539.2 1,161.1 2,380.0 4,850.0 45.8 147.4 310.8 4,800.0 Business profit 1 A 16.2 45.7 135.3 32.3 90.0 215.0 16.1 44.3 79.7 215.0 Finance income / costs B (5.8) (11.5) (24.7) (6.3) (20.0) (40.0) (0.5) (8.5) (15.3) (40.0) Segment Profit Steel Business (12.1) (5.3) 38.0 3.0 30.0 100.0 15.1 35.3 62.0 100.0 Engineering Business 5.7 12.6 23.9 8.9 13.0 25.0 3.2 0.4 1.1 25.0 Trading Business 12.6 21.9 40.2 11.3 22.5 45.0 (1.3) 0.6 4.8 45.0 Adjustments 4.1 4.8 8.4 2.6 4.5 5.0 (1.5) (0.3) (3.4) 5.0 Total A+B 10.3 34.1 110.5 25.9 70.0 175.0 15.6 35.9 64.5 175.0 Exceptional Items 2 - - (23.1) 15.0 15.0 15.0 15.0 15.0 38.1 15.0 Profit before tax 10.3 34.1 87.4 40.9 85.0 190.0 30.6 50.9 102.6 190.0 Tax Expense and Profit (Loss) Attributable to Non-controlling Interests (3.2) (7.4) (17.2) (9.7) (20.0) (40.0) (6.5) (12.6) (22.8) (40.0) Profit Attributable to Owners of Parent 7.1 26.6 70.1 31.2 65.0 150.0 24.1 38.4 79.9 150.0 1 Business profit: Profit that excludes financial income and exceptional items from profit before tax. It is a benchmark indicator of the company’s consolidated earnings. 2 Exceptional Items: One-time items of a materially significant value. (2) Consolidated Financial Indices (1H Fiscal 2026 Forecasts) Fiscal 2025 1H Fiscal 2026 Change Return on Sales (ROS) 1 3.0% 3.8% 0.8% Return on Assets (ROA) 2 2.3% 3.0% 0.7% Return on Equity (ROE) 3 2.7% 4.9% 2.2% EBITDA 4 409.5 billion yen 230.0 billion yen - Interest-bearing debt outstanding 1,959.3 billion y en 2,200.0 billion yen 240.7 billion yen Debt / EBITDA multiple 5 4.8x 4.8x - Equity attributable to owners of parent 2,619.5 bil lion yen 2,670.0 billion yen 50.5 billion yen D/E Ratio 6 59.4% 66.6% 7.2% 1 ROS = Business profit / Revenue 2 ROA (full year) = Business profit / Total assets, ROA (first half) = Business profit x 2 / Total assets 3 ROE (full year) = Profit attributable to owners of parent / Equity attributable to owners of parent ROE (first half) = Profit attributable to owners of parent x 2 / Equity attributable to owners of parent 4 EBITDA = Business profit + Depreciation and amortization 5 Debt / EBITDA multiple (full year) = Interest-bearing debt outstanding / EBITDA Debt / EBITDA multiple (half year) = Interest-bearing debt outstanding / (EBITDA x 2) 6 D/E ratio = 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. * Debt having a capital component (subordinated loans and bonds) Borrowing Execution Date (or Bond Issuance Date) Amount Borrowed (or Amount of Bond) Assessment of Equity Content Amount Deemed to be Capital March 19, 2018 100.0 billion yen 50% 50.0 billion yen June 10, 2021 35.0 billion yen 50% 17.5 billion yen March 20, 2023 205.0 billion yen 50% 102.5 billion yen June 11, 2026 60.0 billion yen 50% 30.0 billion yen (*) June 30, 2026 105.0 billion yen 50% 52.5 billion yen (*) *The subordinated loans totaling 167.5 billion yen raised on June 30, 2016 was paid in advance of maturity, and new subordinated bonds of 60.0 billion yen and subordinated loans of 105.0 billion yen were raised on June 11, 2026 and on June 30, 2026, respectively.
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(3) Crude Steel Production (JFE Steel) (million tons) 1Q 2Q 1H 3Q 4Q 2H Full year Fiscal 2025 Non-consolidated Consolidated 5.28 5.52 10.80 5.32 5.25 10.57 21.37 5.61 5.81 11.42 5.59 5.54 11.13 22.55 Fiscal 2026 Non-consolidated Consolidated 5.25 5.60* 10.80* 10.70* 21.50* 5.56 5.90* 11.40* *estimate (4) Shipments (JFE Steel on non-consolidated basis) (million tons) 1Q 2Q 1H 3Q 4Q 2H Full year Fiscal 2025 4.71 4.82 9.53 4.72 4.61 9.33 18.86 Fiscal 2026 4.54 4.90* 9.40* *estimate (5) Export Ratio on Value Basis (JFE Steel on non-consolidated basis) (%) 1Q 2Q 1H 3Q 4Q 2H Full year Fiscal 2025 39.9 42.8 41.3 40.3 40.1 40.2 40.8 Fiscal 2026 39.3 43* 41* *estimate (6) Foreign Exchange Rate (Yen/US dollar) (JPY/USD) 1Q 2Q 1H 3Q 4Q 2H Full year Fiscal 2025 145.3 147.0 146.2 153.2 155.3 154.3 150 .2 Fiscal 2026 159.9 160* 160* 160* 160* *estimate (7) Average Selling Price (JFE Steel on non-consolidated basis) (thousands of yen/ton) 1Q 2Q 1H 3Q 4Q 2H Full year Fiscal 2025 120.4 119.2 119.8 120.0 123.4 121.7 120 .7 Fiscal 2026 124.2 134* 129* (8) Engineering Business Orders (including intersegment transactions) (billions of yen) *estimate Field 1H Fiscal 2025 1H Fiscal 2026 Forecast Change Fiscal 2026 Forecast Waste to Resource Carbon Neutral Core Infrastructure 183.3 116.6 63.1 110.0 120.0 60.0 (73.3) 3.4 (3.1) 230.0 240.0 130.0 Total 363.0 290.0 (73.0) 600.0 (9) Capital Investment and Depreciation and Amortization (JFE Holdings on consolidated basis) (billions of yen) Fiscal 2025 Fiscal 2026 Forecast (on construction basis) Capital Investment 379.9 370.0* Depreciation & Amortization 274.2 295.0* *estimate
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(10) Breakdown of Changes in Segment Profit a. First quarter of Fiscal 202 6, compared to same period of Fiscal 202 5 +15.6 billion yen: 10.3 billion yen in first quarter of fiscal 2025 → 25.9 billion yen in first quarter of fiscal 2026 Change (billions of yen) Steel Business - Cost +7.0 Operational improvement, etc. - Volume and mix 0.0 Crude steel production: 5.28 → 5.25 million tons - Spread* (45.0) Sluggish steel market conditions in domestic and overseas market, surge in main raw materials prices Rising costs due to the situation in the Middle East - Inventory valuation, etc. +47.0 Inventory valuation: +36.0 Carry over: +4.0 Foreign exchange valuation: +7.0 - Others +6.1 Group companies: +6.0 (Domestic:+1.0, Overseas:+5.0 (India:+7.0)) - Total 15.1 Engineering and Trading businesses, and Adjustments 0.5 b. Fiscal 2026 forecast, compared to Fiscal 2025 +64.5 billion yen: 110.5 billion yen in fiscal 2025 → 175.0 billion yen in fiscal 2026 forecast Change (billions of yen) Steel Business - Cost +37.0 Operational improvement, effects from investment, and other initiatives - Volume and mix +13.0 Crude steel production: 21.37 → Approx.21.50 million tons Expansion of high-value-added products (Electrical steel, plates for wind power applications, etc.) - Spread* (36.0) Sluggish steel market conditions in domestic and overseas market, surge in main raw materials prices Rising costs due to the situation in the Middle East Initiatives to improve steel product prices - Inventory valuation, etc. +61.0 Inventory valuation: +76.0 Carry over: -10.0 Foreign exchange valuation -5.0 - Others (13.0) Group companies: +23.0 (Domestic:-11.0, Overseas:+34.0 (India:+33.0)) Others: -36.0 (Depreciation, interest expense, etc.) - Total +62.0 Engineering and Trading businesses, and Adjustments +2.5 Impact of the situation in the Middle East on costs: Approx. -15.0 (Including the group companies) Impact of the situation in the Middle East on costs: Approx. -60.0 (Including the group companies -10.0 )
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c. Fiscal 2026 forecast, compared to previous forecast 0.0 billion yen: 175.0 billion yen (previous forecast) → 175.0 billion yen in Fiscal 2026 forecast Change (billions of yen) Steel Business - Cost +2.0 - Volume and mix +3.0 Crude steel production: Approx. 21.50 → Approx. 21.50 million tons - Spread* (16.0) Rising costs due to the situation in the Middle East Promoting improvement to steel product prices - Inventory valuation, etc. 0.0 Inventory valuation: 0.0 Carry over: -4.0 Foreign exchange valuation: +4.0 - Others +11.0 Group companies: +7.0 (Domestic:+2.0, Overseas:+5.0 (India:+8.0)) Others: +4.0 (Depreciation, etc.) - Total 0.0 Engineering and Trading businesses, and Adjustments 0.0 d. Second half of Fiscal 202 6 forecast, compared to first half of Fiscal 202 6 forecast +35.0 billion yen: 70.0 billion yen (first half forecast) → 105.0 billion yen (second half forecast) Change (billions of yen) Steel Business - Cost +7.0 Operational improvement - Volume and mix +3.0 Crude steel production: Approx. 10.80 → Approx. 10.70 million tons Expansion of high-value-added products - Spread* +59.0 Promoting improvement to steel product prices - Inventory valuation, etc. (30.0) Inventory valuation: -18.0 Carry over: -11.0 Foreign exchange valuation: -1.0 - Others +1.0 Group companies: +14.0 (Domestic:+10.0, Overseas:+4.0 (India:+3.0)) Others: -13.0 (Depreciation, interest expense, etc.) - Total +40.0 Engineering and Trading businesses, and Adjustments (5.0) *Spreads including various prices (metals, energy, materials, logistics, labor costs, foreign exchange effects, etc.) ### Impact of the situation in the Middle East on costs: Approx. -60.0 (Including the group companies -10.0 ) No impact on costs from the situation in the Middle East (1H to 2H)