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Seventh Medium‐term Business Plan


The JFE Group is in the midst of an unprecedented business environment characterized by rapid and extensive change. To adapt to these changes and steadily increase corporate value over the medium to long term, JFE formulated its seventh medium‐term business plan running from FY2021 through FY2024. The four years covered by the plan will be the most transformative period in the Company's history. Through the plan, we aim to rise to a new level by taking bold steps to establish a foundation for sustained, long‐term growth.

Goals to Achieve for the Seventh Medium‐term Business Plan

The long‐term goal of JFE is to provide products and services that support the development of a prosperous global future, which reflects JFE's corporate vision of contributing to society with the world's most innovative technology .

JFE's mission is to establish its position as a company essential to society's sustainable development and to create safe, comfortable lives for people everywhere. Ensuring environmental and social sustainability (helping to solve critical issues) and establishing economic sustainability (stable earnings power) will be crucial to making this happen. Achieving sustainable growth and increased value for the Group over the medium to long term will in turn enable us to further contribute to the sustainable development of our society for a prosperous global future.

JFE's corporate vision: Contributing to society with the world's most innovative technology

Major Strategies of the Seventh Medium‐term Business Plan

Achieve Environmental and Social Sustainability

Formulation and Promotion of the JFE Group Environmental Vision for 2050

Climate change has spawned a sense of crisis that has rapidly spread across the the world, increasing the urgency of finding a solution. The JFE Group has positioned its initiatives on climate change as a top-priority business issue from the perspective of business continuity and formuated the JFE Group Environmental Vision for 2050. We will seek to reduce CO2 emissions from the steel business by 18% from FY2013 levels by the end of FY2024 and achieve carbon neutrality by 2050. To meet these goals, JFE will work to address climate change by developing super‐innovative technology for carbon‐recycling blast furnaces*1 and CCU*2, accelerating the commercialization of its offshore wind-power business by applying the strengths of the Group while further reducing CO2 emissions, with a focus on its engineering business, for all of society.

*1Carbon-recycling Blast Furnace: A blast furnace operated by applying hydrogen to convert the CO₂ generated in steelworks into a carbon-neutral reduction agent (methane) and replacing it with conventional coal-derived reduction agents.

*2 CCU: Carbon dioxide Capture and Utilization

Seventh Medium‐term Business Plan
JFE Group Environmental Vision for 2050

Solve Issues Impacting Society

The JFE Group adheres to the philosophy of safety first, and it promotes the development of a safe working environment. To achieve our top-priority goal of zero accidents, we will bolster safety education and require stringent compliance with related rules while also focusing our efforts on eliminating accidents at our facilities. Furthermore, we will secure diverse human resources required for raising competitiveness and achieving our growth strategies, nurture employees who serve as the foundation of our business activities, and create workplace environments and internal systems to maximize the capabilities of our employees.

We will also expand bases for local production and consumption focused on the food-recycling business to contribute to communities through our engineering business. We will seek to realize a circular economy by broadly expanding these businesses.

We will conduct human rights due diligence from FY2021 to strengthen our human rights management across the global supply chain.

Seventh Medium‐term Business Plan
Occupational Health and Safety
Labor Standards (Recruit and Nurture Diverse Human Resources)
JFE Engineering's Website: 360°JFE Engineering
Human Rights

Enhancing Corporate Governance

JFE has implemented initiatives such as formulating its Basic Policy on Corporate Governance, establishing the Nomination Committee and the Remuneration Committee, introducing a performance-linked remuneration system for directors as well as conducting the analysis and evaluation of directors' effectiveness to enhance corporate governance. In order to further strenghen the Group's governance, we will set performance targets for non‐financial metrics related to environmental and social issues and reinforce our Group-wide cross‐sectional risk‐management system.

Corporate Governance

Establish Economic Sustainability (Stable Earnings Power)

The domestic steel market is expected to shrink as Japan's population declines, while intensifying price competition for commodity products and the increasing trend of local production of steel for local use suggest that efforts to grow export volumes are not likely to be profitable. Therefore, we will shift production in Japan toward profitability based on quality rather than quantity and pursue targets per‐ton profit of steel materials as our target. To that end, we will establish a profit base that is resilient to changes in economic conditions by successfully completing structural reforms. We will introduce new technologies through digital transformation (DX) to significantly reduce costs, and we will ensure competitiveness by improving quality and delivery, ultimately to achieve world‐class cost and quality competitiveness. We will also expand margins and achieve stable profit by increasing our mix of highly value‐added products and fully overhauling our sales pricing.

In addition, we will steadily promote the growth strategies of each operating company through initiatives such as considering the establishment of a production and sales joint venture with India's JSW for (grain‐oriented) electromagnetic steel sheets and expanding the engineering business in the environmental, recycling and renewable‐energy fields. To boost competitiveness in these businesses, we will promote DX across all our business domains focused on the three areas of advancing productivity through innovation, transforming existing businesses, and creating new businesses.

We will also balance financial soundness with effective investment based on a "select and concentrate" approach. We selectively extend investments to maintain functions by prioritizing those for raising competitiveness and establishing a stable foundation for profit and to secure funding by reducing assets and businesses that contribute little to earnings or are tied to unprofitable businesses to reduce our assets. By doing so, we will steadily implement strategies for achieving our performance and profitability targets, which are: ROE of 10%; 320 billion yen in consolidated business profit; and 220 billion yen in profit attributable to owners of parent, by the plan's final year (FY2024).

Investment and Asset‐Downsizing Plans

Content Seventh medium‐term business plan
(four-year total)
Consolidated Investment Equipment Investment About 1,200 billion yen
Business Investment About 250 billion yen
Total About 1,450 billion yen
(Of above) GX Investment* About 340 billion yen
DX Investment About 120 billion yen
Asset Downsizing About 200 billion yen

*Investment in green transformation (carbon neutrality)

Performance and Profitability Targets and Dividend Policy

Performance and profitability targets Seventh medium‐term business plan
(final year: FY2024)
Consolidated business profit 320 billion yen/year
Profit attributable to owners of parent 220 billion/year
ROE 10%
Debt/EBITDA About 3 times
D/E ratio About 70%
Dividend policy Seventh medium‐term business plan
Payout ratio About 30%