Risk of declining fixed-asset value and profitability

「Primarily because the carrying amounts of operating assets of JFE Steel Corporation, a consolidated subsidiary in the Steel Business, in Kawasaki, Kanagawa Prefecture, were reduced to recoverable amounts following the decision to reorganise the sheet and coated steel business, the resulting reduction of ¥8,743 million was recorded as an impairment loss in the consolidated statement of income.」

「減損損失3億47百万円」

「Primarily because the carrying amounts of operating assets of JFE Steel Corporation, a consolidated subsidiary in the Steel Business, in Kurashiki, Okayama Prefecture, and Fukuyama, Hiroshima Prefecture, were reduced to recoverable amounts in line with the policy of restructuring the domestic production system set out in the Eighth Medium-Term Business Plan, the resulting reduction of ¥25,194 million was recorded as an impairment loss in the consolidated statement of income.」

「Primarily because the carrying amounts of operating assets in a subsidiary of JFE Engineering Corporation, where the business environment had deteriorated, and idle assets in Tsu, Mie Prefecture, were reduced to recoverable amounts, the resulting reduction of ¥11,220 million was recorded as an impairment loss in the consolidated statement of income.」

「Primarily because the carrying amounts of idle assets in the Engineering Business and other assets were reduced to recoverable amounts, the resulting reduction of ¥4,372 million was recorded as an impairment loss in the condensed quarterly consolidated statement of income.」

「Impairment losses　25　2,441」

「During the consolidated fiscal year, primarily because the carrying amounts of idle assets and other assets were reduced to recoverable amounts, the resulting reduction of ¥3,542 million was recorded as an impairment loss in the consolidated statement of income.」

「Primarily because the business environment had deteriorated for operating assets in Myanmar, the carrying amounts were reduced to recoverable amounts and the resulting reduction of ¥11,355 million was recorded as an impairment loss in the consolidated statement of income.」

「Primarily because the business environment had deteriorated for operating assets in Myanmar, the carrying amounts were reduced to recoverable amounts and the resulting reduction of ¥5,830 million was recorded as an impairment loss in the condensed quarterly consolidated statement of income.」

「During the consolidated fiscal year, primarily because the carrying amounts of idle assets and other assets were reduced to recoverable amounts, the resulting reduction of ¥7,544 million was recorded as an impairment loss in the consolidated statement of income.」

「For both the Chiba and Keihin districts of the East Japan Works, future cash flows were calculated based on the restructuring plan and in light of the current challenging environment. As the recoverable amount was lower than the carrying amount of the operating assets held at the works, the carrying amount was reduced to ¥350,983 million, the present value of future cash flows, and the resulting reduction of ¥232,418 million was recorded as an impairment loss.」

「Primarily because the business environment had deteriorated for operating assets in Indonesia, the carrying amounts were reduced to recoverable amounts and the resulting reduction was recorded as an impairment loss of ¥10,252 million in the consolidated statement of income.」

「In the Steel Business segment, the Group recorded an impairment loss of ¥5,752 million.」

「Primarily because the business environment had deteriorated for operating assets, including JFE Steel Corporation's Chita Works, the carrying amounts were reduced to recoverable amounts and the resulting reduction of ¥28,496 million was recorded as an impairment loss under extraordinary losses.」

「Primarily because the originally projected earnings could no longer be expected from goodwill and intangible assets recognised mainly in connection with the acquisition of a German plant engineering company, the carrying amounts were reduced in full and the resulting reduction of ¥9,408 million was recorded as an impairment loss under extraordinary losses.」

「In the Engineering Business segment, the Group recorded an impairment loss of ¥7,399 million on fixed assets, including goodwill.」

「If the value of fixed assets held by the Group declines due to a fall in market value, lower profitability or other factors, this could affect the Group's operating performance and financial condition.」