Nippon Steel Corp. · TSE:5401
Nippon Steel — Investor Presentation (June 2025)
31 slides from Nippon Steel's investor presentation, Jun 24, 2025
Slide 1: Overview of Nippon Steel Business Performance and Future Initiatives
1 Overview of Nippon Steel Business Performance and Future Initiatives
Slide 2: Business Environment
2 Business Performance Business Environment Overview Strategy
Slide 3: Global steel demand leveled off after continuous increase
Global steel demand leveled off after continuous increase 3 Steel exports from China surged Supply-demand Global steel demand for steel in China India Widened demand gap Continues at high level 15 Steadily growing India Massive exports of but at a slow pace (Billion tons/year) surplus steel 10 1.1 C
Slide 4: Decline in steel and raw material prices leads to decline in spread
Decline in steel and raw material prices leads to decline in both steel 4 spread and raw material business profit (A) Steel market price Chinese hot coil market price 1,000 ($/t-Steel) ASEAN CFR equivalent 900 Decline in Decline in raw Decline in spread of steel prices material prices 400 main raw m
Slide 5: Steel demand in Japan has been more sluggish than expected
5 Steel demand in Japan has been more sluggish than expected Continuing population decline (Millions) (Million tons/year) 94 Steel demand in Japan 100- Age composition 140 Population trend 90- 80- 120 1990 70- 100 (Bubble economy) Halved from 60- 80 50- 60 72 its peak 40- 30- 40 69 20- 20 10- 0- 0 6
Slide 6: Business Performance
6 Business Performance Business Environment Overview Strategy
Slide 7: Underlying business profit: FY2024 results and FY2025 forecast
Underlying business profit: 7 FY2024: ¥793.7 bn in the harsh environment FY2025: ¥600.0 bn or more under any environment + U. S. Steel Already secured a profit structure that ensures ¥600 bn or more Over ¥900 bn U. S. Steel regardless of the external environment 935.0 consolidation effect 793.7 Over
Slide 8: Outstanding earnings power among global steelmakers
8 Outstanding earnings power among global steelmakers (Thousand yen/ton) 70 Change in profit per ton of crude steel Profit per ton of crude steel in CY2024 Numerator: Operating profit or EBIT, etc. (Thousand yen/ton) NCS and JFE: Business profit (including inventory valuation -10.0 -5.0 0.0 5.0 10.0
Slide 9: Overview Strategy
9 Business Performance Business Environment Summary Strategy
Slide 10: Continued pursuit of the current growth strategy
Continued pursuit of the current growth strategy 10 in the next mid- to long-term management plan Vertical Raw Rebuild material business steel business in Japan Deepen and expand Overseas overseas business Operational support business Stainless steel Steel business Horizontal EAFs in Japan ASEAN (St
Slide 11: Started to formulate the next mid- to long-term management plan
Started to formulate the next mid- to long-term management plan for 11 achieving further growth Early realization of the “¥1 trillion and 100 million tons” vision Business Further strengthen the steel business in Japan; growth continue the overseas growth strategy strategy Underlying business profit
Slide 12: Growth Strategy Roadmap
12 Growth Strategy Roadmap Blue text in a red frame indicates measures taken FY2023 FY2024 FY2025 FY2026 and onwards since the initial mid- to long-term management plan FY2024-end: Shutdown of Kashima One FY2024-2025: Cost reduction ¥40 bn Facility structural measures series of upstream facilities,
Slide 13: Reduced large-scale capacity to realize an optimal production system
(Review of the current mid- to long-term plan) 13 Reduced large-scale capacity to realize an optimal production system • Facility structural measures in anticipation of a decline in demand in Japan to improve the supply/demand balance • Capacity reduction to reduce fixed costs and improve spread for
Slide 14: Enhance market-oriented competitiveness
14 (Next mid- to long-term plan) Enhance market-oriented competitiveness Global steel Automobiles 12% demand Construction Civil engineering & 1.74 bn tons/year machinery 16% construction 52% 2024 Other manufacturing industry 20% (High-grade steel) (Commodity steel) NSC’s sales mix Direct contract sa
Slide 15: Overseas steel business and raw materials business
15 Overseas steel business and raw materials business USA and Europe: Largest high-grade steel markets Markets with affinity Markets with to Nippon Steel’s Overseas promising steel technologies and steel- demand growth From 2025 products making business 2019 From 2022 India: growing ASEAN: Expand in
Slide 16: Acquired land for a new integrated steelworks in India
Acquired land for a new integrated steelworks to further expand 16 capacity in India AM/NS India reached an agreement with the state government to acquire land for the construction of an integrated steel works in Rajayyapeta, Southern India. Considering an Steel demand in India AM/NS India productio
Slide 17: Completion of U. S. Steel transaction for more growth
17 Completion of U. S. Steel transaction for more growth Fully enter U.S. and European markets which have Make U. S. Steel more competitive and increase demand growth potential mainly in high-grade its corporate value through investment and steel technology sharing We will move forward together as t
Slide 18: Initiatives towards achieving carbon neutrality
18 Initiatives towards achieving carbon neutrality Steady efforts to develop and implement GX innovative technologies and to promote and standardize GX Steel Gov’t support in • Use of Green Innovation (GI) Fund To develop and implement GX technologies Technology development Established a test hydrog
Slide 19: Achieve carbon neutral production process
19 GX innovative technologies: Development and implementation 2025>>>>>>>>2030 >>>>2040 >>>2050 2022 2025 Achieve carbon neutral production process Hirohata No.1 EAF Decided to invest Hirohata: High-grade Started operation in shift to EAF Expand an EAF steel EAF production 2025 production in expansi
Slide 20: Decided EAF investments in Yawata, Hirohata, and Shunan
20 [Topic] Decided EAF investments in Yawata, Hirohata, and Shunan Kyushu Works Yawata Area: Yawata : Hirohata : Construction Expansion Conversion of a BF to an EAF of new large EAF of EAF A major project to renovate the birthplace of modern steelmaking Need investment to reconstruct about 50% of th
Slide 21: Maintain a sound financial structure
21 Maintain a sound financial structure Asset ¥2.1 tn in FY13-FY24 Financial 0.9 streamlining Of which, ¥0.34 tn in FY24 position Hybrid financing, etc. Value as of 0.8 0.74 3/31/2013 D/E ratio Consolidated strategic shareholding After equity adjustment 0.7level Current (incl. deemed holding of shar
Slide 22: Strengthen human resource competitiveness
22 Strengthen human resource competitiveness Human capital-related changing social Promoting diverse management conditions strategies Declining working population and increasing HR mobility Growth strategy, global expansion Diversity, equity & inclusion (DEI) Carbon neutrality Ensuring HR Improving
Slide 23: We ask you, our shareholders, for your continued support
23 We ask you, our shareholders, for your continued support Thank you very much.
Slide 24: Speaker script: business environment and global steel demand
P1. Overview of Nippon Steel Business Performance and Future Initiatives I am Tadashi Imai, President and COO. Here, I would like to give a brief explanation of our business and future initiatives. P2. Business Environment First, let us discuss the business environment. P3. Global Steel Demand The g
Slide 25: Speaker script: steel spread and Japan demand
steel prices and raw material costs is referred to as the main raw material spread, and after deducting manufacturing costs, this spread constitutes the profit for steelmakers. However, as the main raw material spread shrinks, this has resulted in a decline in profitability for steelmakers. The grap
Slide 26: Speaker script: underlying business profit and outlook
that ensures consolidated underlying business profit of ¥600 billion or more, regardless of the external conditions. Despite a significant deterioration in business environments during fiscal 2024, we achieved an underlying business profit of ¥793.7 billion. Regarding the outlook for the current fis
Slide 27: Speaker script: growth strategy and next management plan
P10. Continued Pursuit of a Business Structure with Breadth and Depth First, here is an overview of our growth strategy. Our basic strategy is to achieve stable profitability by restructuring the steel business in Japan and to deepen and expand the overseas business, while establishing a supply chai
Slide 28: Speaker script: steel business in Japan
P13. Steel Business in Japan This section reviews the current management plan for steel operations in Japan. In response to the anticipated decline in steel demand in Japan, we have put in place restructuring initiatives such as shutting down five blast furnaces ahead of the industry. By reducing pr
Slide 29: Speaker script: India expansion and U. S. Steel
P16. Capacity Expansion in India In India, with its robust growth in steel demand, we are advancing our efforts to expand production capacity. At AM/NS India, the acquisition of new land in Rajayyapeta, Southern India, has been completed. Currently, we are considering plans for a new integrated stee
Slide 30: Speaker script: carbon neutrality and innovative technologies
requires the establishment and standardization of international rules that correctly value CO2 reductions. We are actively engaging through Worldsteel to promote global standardization. Fourth is the development of infrastructure. Carbon-neutral steel production processes require that industrial inf
Slide 31: Speaker script: financial structure and human resources
they can be recovered and that sufficient capital efficiency can be retained. However, maintaining a healthy financial structure is required in order to cover initial investment expenses. As shown in the graph on the left, we have already reduced our assets by approximately 2 trillion yen over the p