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Nippon Steel CorporationIR Material for 1st Half of FY2011          October 26, 2011                   Copyright (C) 2011 ...
Contents   Ⅰ Financial Results Overview   Ⅱ Financial Forecast of FY2011   Ⅲ Reference                    Katsuhiko Ota   ...
Ⅰ. Financial Results Overview                 Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved.   3        ...
Consolidated Financial Highlights   FY2009 (April 1, 2009 –March 31, 2010)                                        )       ...
Financial Highlights for 1st Half of FY2011   Net Sales ¥2,027.8bn (NSC Steel Sale Price 87.8 thousand yen/ton (1Q/85.8→2Q...
Financial Highlights for 1st Half(E) and 1st Half of FY2011  【 Profit Decline ¥-15.8bn                                    ...
Financial Highlights for 1st Half of FY2011& 2nd Half of FY2010  【Increased Profit ¥+2.8bn                                ...
Non-Steel Operations Results -1st Half of FY2011Non-Steel Business Total : Net Sales ¥330.5bn, Operating Profit ¥17.4bnYet...
Consolidated Balance Sheets(3E, CY2011→ 9E, CY2011)    Total Assets : ¥4,881.4bn, Decline ¥-119.4bn from Mar. 2011 to Sep....
CAPEX and Investment     Consolidated                                                                                     ...
Ⅱ. Financial Forecast of FY2011                 Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved.          ...
Consolidated Financial Forecast of FY2011 FY2011 forecast   Net Sales ¥4,200bn (Steel Price ¥ approx.88 thousand yen/ton (...
Financial Highlights for 1st Half and 2nd Half Outlook, FY2011                                                            ...
Financial Highlights for FY2011 outlook & FY2010 【Profit Decline ¥-46.3bn Y to Y outlook】                                 ...
Non-Steel Operations Outlook -FY2011 Total of Non-Steel Business : Net Sales ¥765bn, Ordinary Profit ¥47.5bn              ...
Year-end Dividends for FY2011 The level of the first-half (interim) dividend is set based on consideration of the  interim...
Ⅲ. Reference        Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved.        Copyright (C) 2011 Nippon Stee...
1) The Past Financial Results                 Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved.   18
Financial Results                                                                                        FY2010           ...
Financial Results by Business Segments   (billion yen)                                                            FY2010  ...
2) Steel Market          Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved.   21
Trend of Worldwide Steel Demand – Back to Growth                                                                         (...
GDP Trend                                                                               <Released on September 20,2011 by ...
Prospect of Steel Supply Capacity in ChinaEnhanced Plan of BF Production Capacity in China after 2007                     ...
New/Expanded Project Forecast of Raw Materials                                Iron Ore                                    ...
Market Trend of Price of Hot Rolled Sheets(Price of Hot Rolled Sheets in local currency, Jan. 2010=1.0)         cf1) Recen...
Domestic Steel Market Trend               Plates ・ H-flange beams                                                      Hot...
World Crude Steel Production (million ton)                                                                                ...
Japan/China Monthly Data of Crude Steel Production and       Steel Export/Import volume(million ton)                      ...
Japanese Crude Steel Production (Quarterly Trend)All Japan(million tons)                                       (Japanese C...
NSC Activities Overview – Steel Sector                                                 FY2010                             ...
Domestic Steel Consumption by Industrial Sectors                                                          FY2010          ...
Nippon Steel 1H 2012
Nippon Steel 1H 2012
Nippon Steel 1H 2012
Nippon Steel 1H 2012
Nippon Steel 1H 2012
Nippon Steel 1H 2012
Nippon Steel 1H 2012
Nippon Steel 1H 2012
Nippon Steel 1H 2012
Nippon Steel 1H 2012
Nippon Steel 1H 2012
Nippon Steel 1H 2012
Nippon Steel 1H 2012
Nippon Steel 1H 2012
Nippon Steel 1H 2012
Nippon Steel 1H 2012
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Transcript of "Nippon Steel 1H 2012 "

  1. 1. Nippon Steel CorporationIR Material for 1st Half of FY2011 October 26, 2011 Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 1
  2. 2. Contents Ⅰ Financial Results Overview Ⅱ Financial Forecast of FY2011 Ⅲ Reference Katsuhiko Ota Managing Director Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 2
  3. 3. Ⅰ. Financial Results Overview Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 3 3
  4. 4. Consolidated Financial Highlights FY2009 (April 1, 2009 –March 31, 2010) ) FY2010 (April 1, 2010 –March 31, 2011) ) 1st Half of (billion yen) Sales 3,487.7 Sales 4,109.7 FY2011 Ordinary Profit 11.8 Net Income -11.5 Ordinary Profit 226.3 Net Income 93.1NSC Steel Shipments (million metric tons) 4.73 6.74 7.60 8.02 7.76 7.84 7.66 8.10 7.40 7.28 1,051.4 , 1,084.5 1,042.2 1,002.4 1 002 4 970.6 970 6 1,003.1 1 003 1 985.5 985 5 Sales 911.8 828.2 745.0 72.9 55.4 61.8 61 8 53.5 57.0 43.3 44.2 37.9 37.1 25.9 34.3 26.8 33.4 29.0 Ordinary Profit 19.6 Net Income -11.2 -29.5 -30.2 -42.2 -56.6 Apr. Jun. Apr.-Jun. Jul. Sep. Jul.-Sep. Oct. Dec. Oct.-Dec. Jan. Mar. Jan.-Mar. Apr. Jun. Apr.-Jun. Jul. Sep. Jul.-Sep. Oct. Dec. Oct.-Dec. Jan. Mar. Jan.-Mar. Apr. Jun. Apr.-Jun. Jul. Sep. Jul.-Sep. 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 1st Half of FY2009 2nd Half of FY2009 1st Half of FY2010 2nd Half of FY2010 1st Half of FY2011 Sales 1,573.3 Sales 1,914.3 Sales 2,022.0 Sales 2,087.6 Sales 2,027.8 Ordinary Profit -86.9 Ordinary Profit 98.7 Ordinary Profit 134.8 Ordinary Profit 91.4 Ordinary Profit 94.2 Net Income -71.8 Net Income 60.3 Net Income 71.0 Net Income 22.1 Net Income 48.7 Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 4
  5. 5. Financial Highlights for 1st Half of FY2011 Net Sales ¥2,027.8bn (NSC Steel Sale Price 87.8 thousand yen/ton (1Q/85.8→2Q/89.8)) Ordinary Profit ¥94.2bn , Net Income ¥48.7bn, EPS 7.8 yen/share Debt ¥1,365.4bn, Equity ¥1,811.0bn, D/E 0.75 Difference FY2011 1st Half 1st Half, FY2011 1st Half, FY2011 (billion yen) 1Q 2Q ←1st Half(E), FY2011 ←2nd Half, FY2010 N e t S a l e s 985.5 1,042.2 2,027.8 -72.2 -59.8 Operating Profit 38.5 25.8 64.4 -25.6 +17.0 Ordinary Profit 57.0 37.1 94.2 -15.8 15.8 +2.8 NSC 33.8 9.0 42.9 -17.1 +23.6 Others 23.1 28.0 51.2 +1.2 -20.9 Special P fi /L S i l Profit/Loss -7.4 74 - -7.4 74 ~ +26.3 26 3 Loss on securities sold -7.4 - -7.4 ~ -7.4 Others - - - ~ +33.7 Net Income/Loss 29.0 19.6 48.7 -6.3 +26.6 <EPS (yen) > < 4.6 > < 3.1 > < 7.8 > < -0.9 > < +4.2 > Interest bearing Interest-bearing Debt 1,357.6 1 357 6 1,365.4 1 365 4 +27.6 +27 6 Debt -to-equity ratio 0.73 0.75 +0.03 ※ As the past financial results, please refer to P19-20. Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 5
  6. 6. Financial Highlights for 1st Half(E) and 1st Half of FY2011 【 Profit Decline ¥-15.8bn 1st Half of 1st Half(E) of FY2011 FY2011 Difference (1st Half(E) → 1st Half of FY2011)】 (Release on Jul. 27) (A←B) (billion yen) (A) (B) ・Volume ¥-10bn Volume ¥ 10bn (volume influence -0.32mn ton) N e t S a l e s 2,027.8 2,100.0 -72.2 Trouble on plates line in Oita, and typhoon influence in Sep. O r d i n a r y P ro f i t 94.2 110.0 -15.8 ・Steel Price & Product Mix ¥-50 bn Steel N S C 42.9 .9 60.0 -17.1 7. (weak price , mainly market products in abroad) Steel Group c o m p a n i e s 31.3 40.0 -8.7 Non-Steel Business 17.4 15.5 +1.9 (Release on Jul. 27) E l i mi na t i on 2.4 -5.5 +7.9(billion yen) 110.0 110 1,100 Others Raw ※ Materials +6 ~ Cost Non-Steel 100 1,000 Reduction Volume ~ Business 94.2 +2 10 -10 -0.32MT Steel Price & (approx.15.0→14.68MT) Product Mix 90 900 Steel Group -5 Companies -9 80 800 1st Half(E) of FY2011 1st Half of FY2011 ※included in carry over influence Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 6
  7. 7. Financial Highlights for 1st Half of FY2011& 2nd Half of FY2010 【Increased Profit ¥+2.8bn 1st Half of 2nd Half of Difference (2nd Half of FY2011→1st Half of FY2011】 FY2011 FY2011 (billion yen) (A←B) (A) (B) ・Volume decline ¥-25bn N e t S a l e s 2,027.8 2,087.6 -59.8 59.8 (-1.08mt dropped due to earthquake disaster and trouble etc) Ordinary Profit 94.2 91.4 +2.8 ・Raw Materials/Steel Price & Product N S C 42.9 19.3 +23.6 Mix ¥ 45bn ¥-45bn Steel Group companies 31.3 45.0 -13.7 ・Cost Reduction ¥+25bn(annual ¥+100bn) Non-Steel 17.4 28.6 -11.2 ・Inventory valuation ¥+40bn B u s i n e s s Elimination 2.4 -1.6 +4.0(billion yen) 1000 91.4 Others 94.2 100 +33 Non-Steel (DEP etc) Business Cost -11 700 70 Reduction Volume +25 Steel Group 400 40 -25 companies Inventory (-1.08MT valuation :15.76→14.68) ) -14 +40 100 10 Steel Price & Product Mix 2nd Half of FY2010 +145 1st Half of FY2011 -200 -20 Non-Steel Business -11 Engineering -7.7(including seasonal/project E i i 7 7(i l di l/ j t ※included in carry over influence difference), System solutions -1.6, -50 -500 Raw ※ and Queensland floods influence materials Urban Development/Chemical each-1.0 etc -190 Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 7
  8. 8. Non-Steel Operations Results -1st Half of FY2011Non-Steel Business Total : Net Sales ¥330.5bn, Operating Profit ¥17.4bnYet decrease both in sales & profit compared to 1st half of FY2010, higher profit above the former outlook Ordinary 1st Half (E) on Jul. 27 (billion yen) Net Sales P r o f i t Review (1st Half ←1st Half(E)) Net Sales Ordinary Profit 1stHalf of Engineering F Y 2 01 1 96.7 0.1 110.0 1.0 Decline both in sales and profit due to (compared to difference of sales –size ,etc 1st Half FY2010) (-26.9) (-6.9) ( -13.3) (-0.9 ) 1 s t Half of Urban Development F Y 2 01 1 27.9 4.0 Fall in sales and profit due to mainly 30.0 3.5 reaction of big property(condo) (compared to 1st completion last year Half FY2010) (-10.8) (-0.2) (-2.1 ) (+0.5 ) 1 s t Half of C h e m i c a l F Y 2 01 1 101.0 7.3 Net Sales: chemical market price risen. 100.0 5.5 Operating Profit : Increased profit (compared to 1st due to market and cost reduction, etc Half FY2010) (+6.6) (+2.4) (+1.0 ) (+1.8 ) 1 s t Half of New Materials F Y 2 01 1 28.6 28 6 0.5 05 Dropped sales / profit because of 30.0 30 0 1.0 10 influence of inventory adjustment, (compared to 1st strong yen, depreciation cost up for Half FY2010) (-2.3) (-1.0) facility of carbon fiber (-1.4 ) (-0.5 ) 1 s t Half of System Solutions F Y2 01 1 76.2 5.3 Due to a steady increase in sales 75.0 4.5 mainly system solutions for (compared to 1st hardware ,etc Half FY2010) (+2.5) (+0.9) (+1.2 ) (+ 0.8) 1 s t Half of Total of Non-Steel F Y 2 01 1 330.5 330 5 17.4 17 4 345.0 345 0 15.5 15 5 B u s i n e s s (compared to 1st Half FY2010) (-31.0) (-4.6) (-14.5 ) ( +1.9) Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 8
  9. 9. Consolidated Balance Sheets(3E, CY2011→ 9E, CY2011) Total Assets : ¥4,881.4bn, Decline ¥-119.4bn from Mar. 2011 to Sep. 2011 for investment account Year ended Sep. 2011 : D/E 0.75 (billion yen) Sep. 30, Mar. 31, Sep. 30, Mar. 31,ASSETS 2011 2011 Difference LIABILITIES 2011 2011 DifferenceCurrentC rrent assets : 1,712.4 1 712 4 1,710.5 1 710 5 +1.9 +1 9 Current C rrent liabilities : 1,309.2 1 309 2 1,358.3 1 358 3 -49.1 49 1 Cash and bank deposits 71.8 72.7 -0.9 Notes and accounts payable 463.4 476.5 -13.1 Notes and accouts receivable 403.5 459.9 -56.4 Short-term loans 365.5 342.1 +23.4 Inventories 993.7 929.2 +64.5 Other 480.1 539.5 -59.4 Other 243.2 248.6 -5.4 Long-term liabilities : 1,243.1 1,261.5 -18.4 Long-term loans 992.5 987.5 +5.0Fixed assets : 3,168.9 3,290.2 -121.3 Other 250.5 274.0 -23.5 Tangible fixed assets 1,826.9 1,818.3 +8.6 Total liabilities 2,552.3 2,619.9 -67.6 Intangible fixed assets 68.0 62.6 +5.4 Shareholders equity 1,824.3 1,794.3 +30.0 Investments in securities 1,274.0 1 274 0 1,409.2 1 409 2 -135.2 -135 2 Other comprehensive income -13 3 13.3 66.4 66 4 -79.7 -79 7 (including market Minority interest in valuation difference) (32.8) (175.8) (-143.0) consolidated subsidiaries 517.9 520.1 -2.2 NET ASSETS 2,329.0 2,380.9 -51.9Total assets 4,881.4 5,000.8 -119.4 Total liabilities and net assets 4,881.4 5,000.8 -119.4 Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 9
  10. 10. CAPEX and Investment Consolidated FY2011 ( N S C ) FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 Outlook 185 205 270 310 300 330 290 265 C A P E X (140) (165) (200) (230) (220) (270) (210) (180) 181 183 193 244 274 284 292 285 Depreciation (130) (131) (134) (175) (196) (214) (220) (215)(billion yen) Recent Completed Projects CAPEX down within the range of DEP from FY2011 4,000 Nagoya:No.5 coke-oven new construction Mar. 2013 (¥60bn) 400 Depreciation Kimitsu:No.2 BF Revamp 1Q FY2012 (¥40bn) (consolidated) CAPEX(NSC) 285 CAPEX( (consolidated) i ) 3,000 300 CAPEX(Group companies) Depreciation(NSC) 265 Depreciation(Group companies) 2,000 2 000 200 180 215 1,000 100 0 2004年度 FY2004 2005年度 FY2005 2006年度 FY2006 2007年度 FY2007 2008年度 FY2008 2009年度 FY2009 2010年度 FY2010 2011年見 FY2011 outlook Measures to use more Low Price Raw Materials, High-Quality Steel Producing Capacity increase, Cost Reducing measures, etc Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 10
  11. 11. Ⅱ. Financial Forecast of FY2011 Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 11
  12. 12. Consolidated Financial Forecast of FY2011 FY2011 forecast Net Sales ¥4,200bn (Steel Price ¥ approx.88 thousand yen/ton (1st Half/ 87.8, 2nd Half/ approx. 88)) Ordinary Profit ¥180bn, Net Income ¥85bn Difference FY2011 2nd Half Outlook FY2011 Outlook FY2011 Outlook Outlook ←Former Outlook (billion yen) 1st Half 2nd Half outlook ←1st Half ←FY2010 (Released on July 27) (R l d J lN e t S a l e s 2,027.8 2,172.2 4,200.0 +144.4 +90.3Operating Profit 64.4 65.6 130.0 +1.2 -35.6Ordinary P fitO di Profit 94.2 94 2 85.8 85 8 180.0 180 0 -8.4 84 -46.3 46 3 -50.0 50 0 N S C 42.9 17.1 60.0 -25.8 -20.1 -40.0 O t h e r s 51.2 68.8 120.0 +17.6 -26.2S p e c i a lProfit(Loss) -7.4 - -7.4 +7.4 +33.5N e tIncome(Loss) 48.7 48 7 36.3 36 3 85.0 85 0 -12.4 12 4 -8.1 81Dropped ¥-50bn (FY2011 outlook ¥180bn ← Former outlook (July 27,2011) ¥230bn)1) NSC ¥-40bn 2) Group companies etc ¥-10bn・Volume down ¥-30bn Volume ¥ 30bn consideration for influences of macroeconomic instability, flood in Thailand, strong yen, inventory adjustment, etc・Steel Price & Product Mix ¥-10bn (mainly due to the stagnation of market products in abroad) ※ As the past financial results, please refer to P19-20. Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 12
  13. 13. Financial Highlights for 1st Half and 2nd Half Outlook, FY2011 2nd Half 1st Half 【 Profit Decline ¥-8.4bn Outlook, FY2011 Difference (1st Half, FY2011 → 2nd Half , FY2011)】 (billion yen) FY2011 (A←B) (A) (B) ・Volume ¥+10bn(+0 32 t) (+0.32mt) (recovery of domestic demand ,as not good as N e t S a l e s 2,172.2 2,027.8 +144.4 the situation in Thailand floods ) Ordinary Profit 85.8 94.2 -8.4 ・Raw Materials/ Steel Price & Product Mix Mi ¥±0bn N S C 17.1 17 1 42.9 42 9 -25 8 25.8 ・Cost Reduction ¥+25bn (annual ¥+100bn) Steel Group 43.7 31.3 +12.4 ・Non-Steel Business ¥+13bn companies ,etc N o n - S t e e l B u s i n e s s 30.1 17.4 +12.7(billion yen) Elimination -4.9 2.4 -7.3 1,600 160 Non-Steel Non-Steel Business +13 Cost Business Engineering +12 Reduction Steel Group +13 System Solutions +2, New 1,400 140 Materials +1, Urban +25 companies Development/Chemical +13 Volume Each per-1 120 1,200 , +10 Steel Price & (+0.32mt ;14.68 Product Mix →approx.15.00) Inventory ~ Others Valuation, etc 94.2 ※ -14 1,000 100 Raw materials -55 85.8 ~ 80 800 Inventory Valuation, etc -55 1st Half of FY2011 ・Inventory Valuation -50 2nd Half of FY2011 ・Kimitsu/ No.2 BF repair cost influence -5 ※ included in carry over influence Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 13
  14. 14. Financial Highlights for FY2011 outlook & FY2010 【Profit Decline ¥-46.3bn Y to Y outlook】 FY2011 FY2010 【10年度実績→11年度見通し -463億円】 outlook Difference (billion yen) (A←B) ・Volume ¥-35bn(influence -1.65mt) ・生産出荷 -350億円(出荷影響-165万㌧) (A) (B) ・Raw Materials/Steel Price & Product i /S i N e t S a l e s 4,200.0 4 200 0 4,109.7 4 109 7 +90.3 +90 3 ・原料価格/販売価格品種構成 Mix ¥-150bn -1,500億円 Ordinary Profit 180.0 226.3 -46.3 (原料価格-16千円/㌧、販売価格+11千円/㌧) ・Cost Reduction ¥+100bn N S C 60.0 80.1 -20.1 ・コスト改善推進 +1 000億円 コスト改善推進 +1,000億円 ,etc Steel Group 等 Companies 75.0 101.8 -26.8 N o n - S t e e l B u s i n e s s 47.5 50.6 -3.1 Elimination -2.5 -6.4 +3.9(billion yen) 226.3 Others Non-Steel2,000200 +55 (DEP, etc) Business 180.0 Volume -3 -35 Steel Group Inventory (approx.-1.65mt companies valuation, etc : 31.35→29.70) Cost1,000100 -27 +14 reduction +100 Raw ※ materials 0 -465 FY2010 FY2011 outlook Steel Price & Product Mix Inventory valuation, etc +14 y -100-1,000 +315 ・Inventory valuation +15 ・ Kimitsu/ No.2 BF repair cost influence -5 ※included in carry over influence and ・Oita/ BF trouble cost influence(FY2010) +4 Queensland floods influence Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 14
  15. 15. Non-Steel Operations Outlook -FY2011 Total of Non-Steel Business : Net Sales ¥765bn, Ordinary Profit ¥47.5bn Ordinary Former (billion yen) Net Sales Outlook outlook Prof it (Oct.26 ←Jul.27) (Oct 26 ←Jul 27) F Y 2 0 1 1 Engine er ing o u t l o o k 250.0 12.5 Decline prospect both in sales and 12.0 ordinary profit due to dropped sales and ( Y - o n - Y ) ( -4.9) (-2.3 ) strong yen, etc ( +0.5) F Y 2 0 1 1 Urban Development O u t l o o k 75.0 7.0 Dropped both in sales and profit due to 7.0 decline of condo sales (Y –on- Y) ( -11.5) (-2.2 ) ( ~) F Y 2 0 1 1 Net Sales: chemical market price risen risen. C h e m i c a l O u t l o o k 210.0 210 0 13.5 13 5 As Ordinary profit, slightly increased 13.0 13 0 profit taking into consideration risk of ( Y - o n - Y ) (+16.2 ) ( +0.3) sagging profits ( +0.5) F Y 2 0 1 1 New Materials O u t l o o k 65.0 2.0 Almost same level of profit to FY2010 2.0 although net sales is expected higher than last year, because of strong yen, ( Y - o n - Y ) ( +4.2) ( -0.1) inventory adjustment, etc. ( ~) F Y 2 0 1 1 System Solutions O u t l o o k 165.0 12.5 A steady increase in sales mainly system 11.5 solutions for hardware ,etc ( Y - o n - Y ) ( +5.3) ( +1.2) ( +1.0) F Y 2 0 1 1 cf) Engineering Total of Non Steel Non-Steel o u t l o o k 765.0 47.5 FY10 FY11(E) FY10 FY11(E) 45.5 B u s i n e s s Orders Received 33.45 27.00 ( Y - o n - Y ) ( +9.3) ( -3.1) Order Backlog 31.00 33.00 ( +2.0) Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 15
  16. 16. Year-end Dividends for FY2011 The level of the first-half (interim) dividend is set based on consideration of the interim performance and the forecast for the full fiscal year performance performance. The Company has set a first-half(interim) dividend payment of ¥1.5 per share, representing a consolidated payout ratio of 19.3%. The Company plans to announce its plan for the year end dividend when year-end announcing its results for the third quarter of the fiscal year. Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 16
  17. 17. Ⅲ. Reference Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 17
  18. 18. 1) The Past Financial Results Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 18
  19. 19. Financial Results FY2010 FY2011 (billion yen) 1st t 1Q 2Q 1st Half 3Q 4Q 2nd Half 1Q 2Q HalfNet Sales 970.6 1,051.4 2,022.0 1,003.1 1,084.5 2,087.6 4,109.7 985.5 1,042.2 20,278Operating Profit 51.0 51 0 67.0 67 0 118.1 118 1 33.9 33 9 13.5 13 5 47.4 47 4 165.6 165 6 38.5 38 5 25.8 25 8 64.4 64 4Ordinary Profit 61.8 72.9 134.8 53.5 37.9 91.4 226.3 57.0 37.1 94.2 N S C 42.2 18.5 60.8 12.4 6.8 19.3 80.1 33.8 9.0 42.9 O t h e r s 19.6 19 6 54.4 54 4 74.0 74 0 41.1 41 1 31.1 31 1 72.1 72 1 146.2 146 2 23.1 23 1 28.0 28 0 51.2 51 2Special Profit(Loss) -7.2 - -7.2 -0.1 -33.5 -33.7 -40.9 -7.4 - -7.4 L o s s o n securities sold - - - - - - - -7.4 - -7.4 Loss on disaster - - - - -23.7 -23.7 -23.7 - - - O t h e r s -7.2 - -7.2 -0.1 -9.8 -9.9 -17.1 - - -Net Income(Loss) 26.8 44.2 71.0 33,4 -11.2 22.1 93.1 29.0 19.6 48.7<EPS(yen)> <4.3> <7.0> <11.3> <5.3> <-1.8> <3.5> <14.8> <4.6> <3.1> <7.8>Interest-bearing Debt 1,374.4 1,382.1 1,399.8 1,337.8 1,357.6 1,365.4Debt-to-equity ratio 0.78 0.77 0.75 0.72 0.73 0.75 Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 19
  20. 20. Financial Results by Business Segments (billion yen) FY2010 FY2011Net SalesOrdinary Profit 1Q 2Q 1st Half 3Q 4Q 2nd Half 1Q 2Q 1st Half 824.5 894.0 1,718.6 859.4 895.4 1,754.8 3,473.4 851.9 899.6 1,751.6Steel Business 56.4 61.2 117.6 43.5 20.7 64.3 181.9 48.5 25.6 74.2 58.9 64.6 123.6 55.2 76.0 131.2 254.9 44,0 52.6 96.7Engineering 2.6 4.3 7.0 2.1 5.7 7.8 14.8 0.2 -0.1 0.1U r b a n 18.7 18 7 19.9 19 9 38.7 38 7 15.9 15 9 31.8 31 8 47.7 47 7 86.5 86 5 12.7 12 7 15.1 15 1 27.9 27 9Development 1.9 2.2 4.2 2.5 2.5 5.0 9.2 2.3 1.7 4.0 45.9 48.4 94.4 50.2 49.1 99.4 193.8 48.3 52.7 101.0Chemical 1.7 17 3.1 31 4.9 49 4.4 44 3.8 38 8.3 83 13.2 13 2 3.6 36 3.6 36 7.3 73 14.7 16.2 30.9 15.1 14.8 29.9 60.8 14.2 14.3 28.6New Materials 0.7 0.7 1.5 0.0 0.5 0.6 2.1 0.2 0.2 0.5S y s t e m 33.9 33 9 39.7 39 7 73.7 73 7 35.4 35 4 50.5 50 5 85.9 85 9 159.7 159 7 36.2 36 2 39.9 39 9 76.2 76 2Solutions 1.9 2.4 4.4 2.7 4.2 6.9 11.3 2.9 2.4 5.3Total of Non-steel 172.4 172 4 189.1 189 1 361.5 361 5 172.0 172 0 222.3 222 3 394.4 394 4 755.7 755 7 155.6 155 6 174.9 174 9 330.5 330 5B u s i n e s s 9.0 13.0 22.0 11.7 16.7 28.6 50.6 9.3 8.0 17.4 Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 20
  21. 21. 2) Steel Market Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 21
  22. 22. Trend of Worldwide Steel Demand – Back to Growth (* A Apparent fi i h d steel consumption (Released on Oct., 2011 b WSA) finished l i (R l d O by <CY2008> < CY2009> <CY2010> <CY2011(E)> <CY2012(E)>Worldwide total 1.31bn/t 1.22bn/t 1.39bn/t 1.40bn/t* 1.47bn/t *(billion(billi ton) ) From CY2011 +5 6%/ +5~6%/year CY2012 China Other than China 1.47 CY2007 ‘11 1.39 1.33 1.4 CY2002~CY2007 1.31 ave +8%/year ave. 1.22 0.85bn/t +1%/year 0.7bn/t +5%/year0.45bn/t GDP elasticity (2001-2007) China 1.9X OECD 1.1X +0.1bm +0.1bn ton/ 30years ton/ year (source: world steel association ) Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 22
  23. 23. GDP Trend <Released on September 20,2011 by IMF> Former Projection F P j ti*Inflation, average consumer prices(%) (2011.6.17) 2004 2005 2006 2007 2008 2009 2010 2011 2012 Outlook Outlook 4.0 6.0 2.5 3.7 5.0 3.7World Total 4.9 4.4 5.1 5.2 3.0 -0.5 5.1 (4.3) 4.0 (4.5) 4.0 Developed 2.2 3.4 0.1 1.6 2.6 1.4 3.2 2.6 3.0 2.7 0.5 -3.4 3.0 (2.2) 1.6 (2.6) 1.9 countries 2.9 3.8 -0.3 1.6 3.0 (2.5) 1.2 (2.7) USA 3.6 3.1 2.8 2.1 0.4 -2.6 2.9 1.5 1.8 2.1 3.3 0.3 1.6 2.5 1.5 (1.7) EU25 2.1 1.6 2.8 2.7 0.6 -4.1 1.8 (2.0) 1.6 1.1 0.0 1.4 -1.4 -0.7 -0.4 -0.5 (2.9) Japan 2.7 1.9 2.4 2.3 -1.2 -6.3 4.0 (-0.7) -0.5 2.3 Developing 6.5 9.2 5.2 6.1 7.5 5.9 7.5 7.1 7.9 8.3 6.1 2.7 7.4 (6.6) 6.4 (6.4) 6.1 countries 4.8 5.9 -0.7 3.3 5.5 3.3 China 10.1 10.4 11.6 13.0 9.6 9.2 10.3 (9.6) 9.5 (9.5) 9.0 6.4 8.3 India 7.9 9.1 9.8 9.4 7.3 10.9 6.8 12.0 10.4 10.6 (8.2) 7.8 8.6 (7.8) 7.5 * ASEAN5 6.1 5.5 5.7 4.3 43 6.3 9.3 93 4.7 2.9 29 1.7 4.4 44 6.9 6.1 (5.4) 5.3 5.6 (5.7) 5.6 9.0 14.1 11.7 6.9 8.9 (4.8) 7.3 (4.5) Russia 7.2 6.4 7.4 8.1 5.6 -7.8 4.0 4.3 4.1 3.6 5.7 4.9 5.0 6.6 (4.1) 6 6 (4 1) 5.2 (3.6) 5 2 (3 6) Brazil B il 5.7 57 3.2 32 3.8 38 5.7 57 5.1 51 -0.6 06 7.5 75 3.8 38 3.6 36 * Thailand, Malaysia, Indonesia, Philippines, Vietnam (Source: IMF ) Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 23
  24. 24. Prospect of Steel Supply Capacity in ChinaEnhanced Plan of BF Production Capacity in China after 2007 Monthly Crude Steel Production in China (numbers of BF) (million tons) 6.5 2013 2007 2008 2009 2010 2011 2012 ~ Not Less 3,000m3 3 4 10 3 2 3 0 5.5 2,001m3~ 5 6 6 7 6 2 2 3,000m3 4.5 1,000m3~ 14 18 23 24 24 6 1 2,000m3 Under 1,000m3 47 16 13 7 1 2 0 3.5 Unknown 4 3 3 8 1 2 1 Volume 2006 2007 2008 2009 2010 2011 2.5Total 73 47 55 49 34 15 4 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. ・After 2004, Chinese authorities implemented stringent policy in order to control the construction of steel equipment on superheated. On J l 2010 They O July 2010, Th announced the guideline of Steelmaking production and management. In addition, th d th id li f St l ki d ti d t I dditi they indicated their policy not admitting company’s existence cf) Until 2010, Shakeout volumes ; Ironmaking -0.12bn ton, Steelmaking -0.072bn ton ・The enhanced capacity plan of approx. 3,000m3 BF after 2010 have been drastically decreasing since 2009. The (Source: NSC , Metal Bulletin, China e Steel, ITC, China-News, Japan Metal News) Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 24
  25. 25. New/Expanded Project Forecast of Raw Materials Iron Ore Coking Coal(MT/year) *Accounting for the max production volume of each project (MT/year) *Accounting for the max production volume of each project in the year of production start in the year of production start 1,000 80 Samarco South Africa Botswana CSN New Zealand Fortes cue Metals Mongolia Angro American Brazil Mozambique 750 60 Kumba Indonesia Russia BHP Biliton Canada RIO Ti t Tinto Aurtralia Vale 500 40 250 20 0 0 2011 2012 2013 2014 2015~ 2011 2012 2013 2014 2015~ (Source:Data of Daiwa Securities Capital Markets Co., Ltd) Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 25
  26. 26. Market Trend of Price of Hot Rolled Sheets(Price of Hot Rolled Sheets in local currency, Jan. 2010=1.0) cf1) Recent Spot Price of Hot Rolled Sheets USA Oct-19 Guangzhou/China Oct 19 Oct-19 1/4 2/4 3/4 4/4 5/4 6/4 7/4 8/4 9/4 10/41.6 Europe POSCO List Price Bao Steel List Price USA1.21.0 Japan J0.808 2010 2 3 4 5 6 7 8 9 10 11 12 2011 2 3 4 5 6 7 8 9 10 11 .01 .01 (Source: The Japan Iron and Steel Federation) Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 26
  27. 27. Domestic Steel Market Trend Plates ・ H-flange beams Hot-rolled Sheets ・ Cold-rolled Sheets(thousand yen/ton) (thousand yen/ ton) 140 140 Plates(19mm) Hot-rolled sheets (2.3xS) H-flange beams (200×100) Cold-rolled sheets(1.0xS) 120 120 100 Sep.-’11 100 Sep.-’11 87.0 85.0 80 77.0 80 69.0 60 60 cf1) Recent Market Price(Jan. 2011~) cf2) Recent Market Price(Jan. 2011~) 90 90 40 87.0 40 85.0 Oct. 24 80 80 77.0 70.0 20 20 70 Oct.24 70 60 Jan-11 Apr-11 Jul-11 Oct-1 Jan-11 Apr-11 Jul-11 Oct-11 0 0 (Source:Japan Metal Daily/Monthly/Tokyo low price, Wholesaler quoted market price) Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 27
  28. 28. World Crude Steel Production (million ton) 2011CY Jan.- Apr.- l Jul.- annual rate l 2008CY 2009CY 2010CY Jul. Aug. Sep. Jan.-Sep. Mar. Jun. Sep. conversionWorld total * 1,327.2 1,229.4 1,413.6 373.2 384.6 127.5 124.6 123.6 375.6 1,133.8 1,511.7 ( Y-over-Y basis ) (▼1.4%) (▼7.4%) (+15.0%) (+9.3%) (+5.7%) (+11.5%) (+9.8%) (+9.7%) (+10.3%) (+8.2%) (+6.9%)Japan 118.7 87.5 109.6 27.7 26.4 9.1 8.9 8.9 26.9 81.0 108.0 ( Y-over-Y basis ) (▼1.2%) (▼26.3%) (+25.2%) (+4.4%) (▼6.1%) (▼1.2%) (+0.1%) (▼3.8%) (▼1.7%) (▼1.1%) (▼1.4%)USA 91.4 58.2 80.5 21.1 21.6 7.5 7.5 7.2 22.2 64.7 86.2EU27 198.2 198 2 139.4 139 4 172.6 172 6 45.6 45 6 47.8 47 8 14.6 14 6 12.7 12 7 15.0 15 0 42.3 42 3 135.7 135 7 180.9 180 9Russia 68.5 60.0 66.9 17.3 17.3 6.0 5.9 5.8 17.6 51.9 69.2Brazil 33.7 26.5 32.9 8.5 9.2 3.1 3.0 2.8 8.9 26.7 35.6India 57.8 63.5 68.3 17.7 18.0 6.2 6.2 6.0 18.3 53.9 71.9China 500.3 573.6 626.7 171.3 179.2 59.3 58.8 56.7 174.8 525.7 701.0 ( Y-over-Y basis ) (+2.3%) (+14.6%) (+9.3%) (+9.4%) (+8.9%) (+15.5%) (+13.8%) (+16.5%) (+15.2%) (+10.7%) (+11.9%) * The total of 64 countries (Source:World Steel Association) Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 28
  29. 29. Japan/China Monthly Data of Crude Steel Production and Steel Export/Import volume(million ton) Japan (million ton) China 65 Aug. 12.0 Aug. 59 8.9 57 Crude Steel Production C d S lP d i 8.9 89 9.0 55 Crude Steel Production 6.0 45 3.0 35 5.0 6.0 Imports Steel Exports Exports Steel Exports Aug. Net Imports/Exports Aug. A 4.2 42 3.5 Net Imports/Exports 4.0 2.8 Exports Net Imports/Exports Exports 2.8 2.0 2.0 Net Imports/Exports 0.0 00 0 Imports 1.4 -1.0 0.68 -2.0 Imports 100 200 (Source: The Japan Iron and Steel Federation) Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 29
  30. 30. Japanese Crude Steel Production (Quarterly Trend)All Japan(million tons) (Japanese C d St l Production of 3Q outlook FY2011 was released by METI on Sep.29) (J Crude Steel P d ti f tl k l d b S 29) FY’00 FY’01 FY’02 FY’03 FY’04 FY’05 FY’06 FY’07 FY’08 FY’09 FY’10 FY’11 106.90 102.06 109.79 111.00 112.90 112.72 117.74 121.51 105.50 96.45 110.79 1st Half 53.31 28.1 27.7 27.4 26.9 27.7 27.2 26.4 FY11 3Q outlook 8.2 8.3 8.0 8.0 7.8NSC non-consolidated 7.8 17.6 4.7 FY’11 outlook 27.84 26.14 29.90 30.15 29.88 31.20 31.60 33.11 28.61 27.50 32.47 Approx. 31.00 Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 30
  31. 31. NSC Activities Overview – Steel Sector FY2010 FY2011 2nd Half 1st Half 2nd Half 1Q 2Q 1st Half outlook outlookMT = Metric tons Japan Crude Steel Production Million MT 55.42 55.37 110.79 26.37 26.94 53.31 NSC pig-iron *1 Production Million MT 15.92 16.26 32.18 7.76 8.03 15.79 approx.15.80 approx.31.60 NSC ConsolidatedCrude Steel Production 17.35 17.57 34.92 8.30 8.31 16.61 approx.16.70 approx.33.30 Million MT< Non-consolidated > <16.17> <16.30> <32.47> <7.75> <7.78> <15.53> <approx.15.50> <approx.31.00> NSC Steel Shipments Million MT 15.59 15.76 31.35 7.40 7.28 14.68 approx. 15.00 approx. 29.70 Thousand NSC Steel Sale Price yen/ton 82.8 80.6 81.7 85.8 89.8 87.8 approx.88 approx.88 NSC Export Ratio ( Value basis ) % 40.5 40.4 40.4 41.9 40.1 41.0 approx.38 approx.39 Exchange Rate /$ 90 82 86 82 78 80 approx.80 approx.80*1 included in Hokkai Iron&Coke Corporation ‘s pig-iron production Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 31
  32. 32. Domestic Steel Consumption by Industrial Sectors FY2010 FY2011 1st Half 1Q 2Q 1st Half 3Q 4Q 2nd Half 1Q(E) 2Q(E) (E)Domestic steel consumption 14.77 15.40 30.17 15.65 14.37 30.01 60.18 13.40 15.19 28.59 Manufactures Share % 67.8% 67.3% 67.6% 66.4% 65.6% 66.0% 66.8% 66.0% 69.1% 67.7%Ordinary steel consumption 11.75 12.26 24.00 12.47 11.50 23.97 47.97 10.58 11.91 22.48 Construction 4.43 4.71 9.14 4.92 4.65 9.57 18.71 4.28 4.40 8.67 Manufacturing 7.32 7.55 14.86 7.55 6.85 14.40 29.26 6.30 7.51 13.81 Shipbulding Sector 1.47 1 47 1.47 1 47 2.94 2 94 1.46 1 46 1.41 1 41 2.87 2 87 5.81 5 81 1.40 1 40 1.38 1 38 2.78 2 78 Automotive Sector 2.75 2.81 5.55 2.69 2.25 4.94 10.49 1.83 2.82 4.66 Industrial Machine Sector 1.00 1.13 2.13 1.22 1.11 2.32 4.45 1.14 1.19 2.33 Electric Machine Sector 0.79 0.86 1.65 0.85 0.82 1.67 3.32 0.78 0.84 1.61 Spec a ty Steel Specialty Stee Consumption 3.02 3 02 3.14 3 14 6.17 6 17 3.18 3 18 2.86 2 86 6.04 6 04 12.21 12 21 2.82 2 82 3.29 3 29 6.11 6 11 (Source : Various data, NSC estimates) Copyright (C) 2011 Nippon Steel Corporation All Rights Reserved. 32
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