Japan Steel Works : Business Results for the Fiscal Year 2023 (Ended March 31, 2024)

FY2023 / Business Results for the Fiscal Year 2023

(Ended March 31, 2024)

May 16, 2024

Toshio Matsuo

Representative Director & President

The Japan Steel Works, Ltd.

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

Note;

The performance forecasts and other forward-looking statements included in this report are based on the information that was available to The Japan Steel Works, Ltd. (the "Company") and certain assumptions deemed to be reasonable at the time this report was prepared, and the actual results may differ significantly from these forecasts due to a variety of reasons.

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INDEX

PART Ⅰ

Results for FY2023

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

PART Ⅱ

Forecast for FY2024

1. Forecast for Orders Received, Sales and Profits
2. Analysis on Changes in Operating Income
3. Forecast by Segments
4. Industrial Machinery Products Business
5. Material and Engineering Business
6. Changes in Order Backlog and Forecast by Segments
7. Status of Capital Investment, Depreciation, Cash Flows, Financial Position and R&D Expenses

PART Ⅲ

Business Overview

1. Market Sentiment for the Main Product in the Industrial Machinery Products Business
2. Market Sentiment for the Main Product in the Material and Engineering Business
3. Plastic Production Machinery
4. Film and Sheet Manufacturing Equipment
5. Efforts to increase production capacity
6. Thermal and nuclear Power Products
7. Defense equipment

28 Dividend Policy of JGP2028 and the Results

Reference Materials：

Composition of the Business Segments and Major Products / Trends in Net Sales, Operating Income and Profit / Trends in Main Assets and Cash Flows /Corporate philosophy, starting with purpose

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

[PART I]

Results for FY2023

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

Status of Orders Received, Sales and Profits

Orders received, sales and profits increased YoY.

Orders and sales hit record highs for the second consecutive year.

Orders received

（Unit: Billion Yen）

Results for FY2022	FY2023		Change from the	Change from the
	previous year	previous forecast
(A)	Previous forecast		Results	(C)-(A)	(C)-(B)
(as of Nov.16, 2023)
	(B)		(C)
276.0	338.0		334.9	58.9	(3.1)

Net sales

Operating income

(%)

Ordinary income

Profit

Profit per share

(Yen)

Divident per share

(Yen)

238.7	280.0	252.5	13.8	(27.5)
13.8	18.5	18.0	4.2	(0.5)
	5.8%		6.6%		7.1%
14.9	19.0	19.9	5.0	0.9
11.9	14.0	14.2	2.3	0.2
162.75	190.26	194.02	31.27	3.76
58.0	58.0	59.0	1.0	1.0

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Analysis on Changes in Operating Income

Operating income increased by 4.2-billion-yen with the increase of sales and price improvement.

（Unit: Billion Yen）

+11.8	(2.9)
	Machinery: (3.9)	(3.1)
	Material： 1.0
	[(8.5)]	Machinery: (2.4)	+0.2	(1.8)
Machinery: 7.6	Variable Cost	Material: (0.7)
		18.0
Material: 3.7		[(4.5)]	[+0.3]
Others: 0.5
		Fixed Cost	Impact of Forex	[(2.2)]
		Fluctuations	Unclassifiable
13.8
			Expenses
[+19.6]
Increase/Decrease		Average exchange rates for sales in USD
in Production, Sales
and Prices			FY2022: JPY136/USD
			FY2023: JPY145/USD

	*Values in the parentheses"[ ]" under each bar is previous forecast on Nov. 16, 2023.
FY2022	FY2023

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Results by Segments

Both segments increased in sales and profit YoY. Material and engineering business has turned profitable.

Industrial Machinery			（Unit:	Billion Yen）
		Results for FY2022	FY2023		Change from the	Change from the
			previous year	previous forecast
		(A)	Previous forecast	Results	(C)-(A)	(C)-(B)
		(as of Nov.16, 2023)

1. (C)

Orders received		233.1	284.0	277.4	44.3	(6.6)
Net sales		202.9	231.0	208.3	5.4	(22.7)
Operating incom	18.9	22.0	20.4	1.5	(1.6)
(%)	9.3%	9.5%	9.8%

Material and Engineering				（Unit:	Billion Yen）
		Results for FY2022	FY2023		Change from the	Change from the
			previous year	previous forecast
		(A)	Previous forecast		Results	(C)-(A)	(C)-(B)
		(as of Nov.16, 2023)
			(B)		(C)
Orders received		41.1	51.0		55.3	14.2	4.3
Net sales		33.9	46.0		41.9	8.0	(4.1)
Operating incom		(0.8)	2.3		3.2	4.0	0.9
(%)		(2.5%)	5.0%		7.7%

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Industrial Machinery Products Business

Sales increased YoY driven by plastic production and processing machinery. Orders received increased YoY with strong growth in defense equipment and Others.

			Net Sales / Operating Income
					（Unit: Billion Yen）
	Results for	FY2023	Change from	Change from
	the previous	the previous
	FY2022
			year		forecast
			Previous
	(A)	forecast	Results	(C)-(A)		(C)-(B)
			(as of Nov.16,
			2023)
			(B)	(C)
Plastic production and	92.2	112.0	102.7	10.5	(9.3)
processing machinery
Molding machines	65.8	68.0	58.7	(7.1)	(9.3)
Defense equipment	23.8	24.0	24.1	0.3	0.1
Others	21.1	27.0	22.8	1.7	(4.2)
Total	202.9	231.0	208.3	5.4	(22.7)
Operating income	18.9	22.0	20.4	1.5	(1.6)

Orders Received

（Unit: Billion Yen）

Results for	FY2023	Change from	Change from
the previous	the previous
FY2022
		year	forecast
	Previous
(D)	forecast	Results	(F)-(D)	(F)-(E)
	(as of Nov.16,
	2023)
	(E)	(F)
107.3	136.0	102.1	(5.2)	(33.9)
65.4	66.0	64.9	(0.5)	(1.1)
36.1	53.0	70.5	34.4	17.5
24.2	29.0	39.9	15.7	10.9
233.1	284.0	277.4	44.3	(6.6)

• The conventional "Others" is now divided into "Defense equipment" and "Others".

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Material and Engineering Business

Orders received, sales and profits increased YoY with strong growth in steel forgings and plates.

			Net Sales / Operating Income
					（Unit: Billion Yen）
	Results for	FY2023	Change from	Change from
	the previous	the previous
	FY2022
			year		forecast
			Previous
	(A)	forecast	Results	(C)-(A)		(C)-(B)
			(as of Nov.16,
			2023)
			(B)	(C)
Steel forgings and plates	24.9	34.0	33.0	8.1	(1.0)
(Steel castings and forgings)
Engineering, etc.	9.0	12.0	8.9	(0.1)	(3.1)
Total	33.9	46.0	41.9	8.0	(4.1)
Operating income	(0.8)	2.3	3.2	4.0	0.9

Orders Received

（Unit: Billion Yen）

	Results for	FY2023	Change from	Change from
	the previous	the previous
	FY2022
			year	forecast
		Previous
	(D)	forecast	Results	(F)-(D)	(F)-(E)
		(as of Nov.16,
		2023)
		(E)	(F)
	30.6	44.0	47.7	17.1	3.7
	10.5	7.0	7.6	(2.9)	0.6
	41.1	51.0	55.3	14.2	4.3

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[PART Ⅱ]

Forecast for FY2024

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