JFE Holdings' Financial Results for Fiscal Year 2022

ended March 31, 2023

  • 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)

May 8, 2023

Official name:

JFE Holdings, Inc.

Listings:

Tokyo stock exchanges

Code:

5411

English URL:

www.jfe-holdings.co.jp/en

Representative:

Koji Kakigi, President and CEO

Contact:

Hiroki Watanabe, Manager, Public Relations Section

Investor Relations and Corporate Communications

Department

Phone:

+81-3-3597-3842

Annual shareholders meeting (planned):

June 27, 2023

Dividend payment starting date:

June 28, 2023

Scheduled date to submit securities report:

June 27, 2023

Preparation of supplementary materials on results:

Yes

Results briefing:

Yes

(Figures are rounded down to the nearest million yen)

1. Consolidated Results for Fiscal 2022 (April 1, 2022 to March 31, 2023)

(1) Consolidated Operating Results (cumulative total)

(Percentages indicate year on year change)

Profit

Compre-

Business

Profit

attributable

Revenue

Profit

hensive

%

profit

%

before tax

%

%

to owners

%

%

(million yen)

(million yen)

income

(million yen)

(million yen)

of parent

(million yen)

(million yen)

FY 2022

5,268,794

20.7

235,841

(43.4)

210,282

(45.9)

166,752

(42.5)

162,621

(43.5)

203,814

(42.6)

FY 2021

4,365,145

35.3

416,466

－

388,535

－

289,793

－

288,058

－

355,249

461.8

Basic earnings per

Diluted earnings per

Profit ratio to equity

Profit before tax ratio

Business profit ratio

share

share

attributable to

to total assets

to revenue

(yen)

(yen)

owners of parent

(%)

(%)

(%)

FY 2022

280.68

280.52

7.9

3.9

4.5

FY 2021

500.28

500.12

15.7

7.8

9.5

(Reference): Equity in earnings of affiliates:

FY 2022: 23,002 million yen FY 2021: 99,730 million yen

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

Total equity

Equity attributable to

Total equity

Equity attributable to

(million yen)

(million yen)

owners of parent

attributable to

owners of parent per

(million yen)

owners of parent

share

(%)

(yen)

FY 2022

5,524,040

2,193,395

2,120,322

38.4

3,649.79

FY 2021

5,287,909

2,070,739

1,988,268

37.6

3,452.82

(3) Consolidated Cash Flows

Cash flows from

Cash flows from

Cash flows from

Cash and cash

operating activities

investing activities

financing activities

equivalents at end of

(million yen)

(million yen)

(million yen)

year

(million yen)

FY 2022

395,797

(274,308)

(110,175)

119,391

FY 2021

298,738

(288,034)

(57,427)

101,773

2. Dividends

Dividend per share (yen)

Dividend ratio of

Total dividend

Dividend

equity attributable

Annual

End on 1st

Interim

End on 3rd

Yearend

payout

payout ratio

to owners of

(million yen)

(consolidated, %)

parent

quarter

quarter

(consolidated %)

FY 2021

140.00

-

60.00

-

80.00

80,709

28.0

4.4

FY 2022

80.00

-

50.00

-

30.00

46,527

28.5

2.3

FY 2023

100.00

-

-

-

-

30.6

(forecast)

The company's basic policy regarding dividends from retained earnings is to pay an interim and year-end dividend each year, but since the estimated interim dividend has not been determined at this time, the forecast is presented as a total.

3. Forecasts of Consolidated Financial Results in Fiscal 2023 (April 1, 2023 to March 31, 2024)

(Percentages indicate year on year change)

Business

Profit

Basic earnings

Revenue

Profit before

attributable

%

profit

%

tax

%

to owners

%

per share

(million yen)

(million yen)

(million yen)

of parent

(yen)

(million yen)

FY 2023

5,540,000

5.1

290,000

23.0

270,000

28.4

190,000

16.8

327.05

Notes

  1. Changes in significant subsidiaries during the term (changes in designated subsidiaries resulting in changes in consolidated structure): No
  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
  4. Number of outstanding shares (common stock)
    1. Outstanding shares at the end of the term (including treasury stock) As of March 31, 2023: 614,438,399 shares
      As of March 31, 2022: 614,438,399 shares
    2. Treasury stock at the end of the term
      As of March 31, 2023: 33,494,986 shares
      As of March 31, 2022: 38,599,423 shares
  1. Average number of shares during the term FY 2022: 579,382,068 shares
    FY 2021: 575,793,363 shares

This report is not subject to auditing by a certified public accountant or an audit corporation. Explanation of Appropriate Use of Results Forecasts, and Other Matters of Note

  1. Forecasts and other forward-looking statements herein are based on information available on the date 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. For a description of the results forecasts, see "1. Qualitative Information
    (4) Outlook for Fiscal 2023" on Page 3 of the attachments.
  2. The supplementary financial data will be disclosed today via TDnet and published on our website.

Attachments

1.

Qualitative Information

2

(1)

Overview of Business Results

2

(2)

Overview of Financial Position

3

(3)

Overview of Cash Flow in Fiscal 2022

3

(4)

Outlook for Fiscal 2023

3

2.

Basic Rationale for Selection of Accounting Standards

3

3.

Consolidated Financial Statements

4

(1)

Consolidated Statement of Financial Position

4

(2)

Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income

6

(3)

Consolidated Statement of Changes in Equity

8

(4)

Consolidated Statement of Cash Flow

10

(5)

Notes to Consolidated Financial Statements

12

Notes pertaining to the presumption of a going concern

12

Segment information

12

Per-share information

14

Material subsequent events

14

4.

Supplementary Information

15

1

1. Qualitative Information

(1) Overview of Business Results

In fiscal 2022, JFE continued to achieve sustainable growth and improve its corporate value for shareholders and other stakeholders by pursuing its corporate mission of contributing to society with world-leading technology. The Japanese and global economies continued to recover from the economic slump brought about by the COVID-19 pandemic, despite price increases and supply-side constraints due to the economic impacts of the ongoing war in Ukraine, suppressed economic activity in China, growing global inflation concerns, and a weaker yen.

Under these circumstances, JFE worked to increase its ratio of high-value-added products and raise selling prices by passing on the costs of primary raw materials and various commodities. The company also advanced efforts to reinforce its earnings base by steadily pursuing structural reforms and blast furnace renovations. Nevertheless, negative factors including foreign exchange effects and inventory-valuation differences resulted in year-on-year decreases in both business profit and profit attributable to owners of the parent. The following explanation presents operating results in each segment.

In the steel business, consolidated crude-steel production volume declined to 25.48 million tons, reflecting the company's emphasis on maintaining prices in the face of softening demand for steel products, both in Japan and abroad, as well as related market conditions, especially in the second half of the year when costs of materials and equipment rose sharply and supplies of semiconductors and other components were constrained. Nevertheless, sales revenue increased significantly to 3,881.1 billion yen, despite a decrease in sales volume, due to efforts to raise selling prices and also factors such as the foreign exchange effects of a weaker yen. Despite efforts to reduce costs and improve selling prices, segment profit declined significantly to 146.8 billion yen due to one-time factors that impacted profit, such as unrealized losses on inventories, as well as soaring raw material prices and foreign exchange effects.

In the engineering business, orders received rose to a record high as a result of aggressive sales efforts to win orders, primarily in the field of core infrastructure, both in Japan and abroad. Sales revenue rose to 512.5 billion yen. Segment profit, however, declined to 13.4 billion yen due to factors such as soaring costs of materials and equipment and the worsening profitability of a construction project in Europe.

In the trading business, sales revenue rose to 1,514.1 billion yen and segment profit achieved a record high of 65.1 billion yen, thanks to efforts to expand sales of steel products as well as generally firm conditions for steel sales volume both in Japan and overseas. Also, selling prices trended upward in Japan and abroad, especially in North America.

On a consolidated basis, sales revenue rose firmly to 5,268.7 billion yen. Business profit declined to 235.8 billion yen. Among exceptional items, loss on liquidation of subsidiaries and associates etc. totaled 10.7 billion yen. Profit before tax came to 210.2 billion yen and profit attributable to owners of the parent totaled 162.6 billion yen.

Note: Business income is profit before tax, excluding financial income and one-time items of a materially significant value. It is a benchmark indicator of the company's consolidated earnings. The operating performance of each segment is presented in terms of segment profit, a measure including financial income in business profit. Exceptional items are one-time items of a materially significant value.

2

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

JFE Holdings Inc. published this content on 08 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2023 06:20:09 UTC.