Nippon Steel Corp. · TSE:5401

Nippon Steel — Q1 FY2010 Earnings Presentation

45 slides from Nippon Steel's earnings presentation, Jul 28, 2010

  1. Slide 1: Nippon Steel 1Q FY2010 Results Briefing

    2011 3 1 2010 7 28 www. nsc. co. jp Copyright C)2010 NIPPON STEEL Corporation All Rights Reserved. 1 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  2. Slide 2: Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

    2011 3 1 2011 3 2 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  3. Slide 3: 1. Results overview

    1. 2011 3 1 3 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  4. Slide 4: 1Q results summary

    2010 1 2008 2009 2010 47,698 34,877 1Q 3,361 1,550 118 -115 2008 2008 2009 2009 26,021 21,676 15,733 19,143 2,622 739 -869 987 1,616 -65 -718 603 4 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  5. Slide 5: 1Q vs 4Q consolidated results

    10 09 1Q 4Q A B A B 9,706 10,024 -318 510 636 -126 618 554 +64 422 218 +204 196 336 -140 -72 58 -130 268 343 -75 <4.3> <5.5> <-1.2> 13,744 13,837 -93 0.78 0.75 +0.03 5 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  6. Slide 6: Non-consolidated results 1Q vs 4Q

    10 09 1Q 4Q A B A B 9,706 10,024 -318 618 554 +64 422 218 +204 141 217 -76 90 161 -71 -35 -42 +7 ( ) -70 -50 +500 26 802 776 -70 +70 +230 +250 -20 -700 +450 6 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  7. Slide 7: Results by segment

    10 1Q 09 1Q A B 9,706 618 6.4% 7,450 -566 -7.6% +2,256 +1,184 8,245 564 6.8% 5,788 -658 -11.4% +2,457 +1,222 1,724 90 1,939 134 -215 -43 589 26 4.4% 888 81 9.1% -299 -55 187 19 10.2% 215 7 3.3% -28 +12 459 17 3.7% 379 25 6.6% +80 -8 147 7 4.8% 129 -0 -0.0% +18 +7 339 19 5.6% 326 20 6.1% +13 -1 -263

  8. Slide 8: Segment ordinary income changes

    10 1Q 589 -299 26 -55 187 -28 19 +12 459 +80 17 -8 147 +18 7 +7 339 +13 19 -1 1,724 -215 90 -43 8 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  9. Slide 9: Topics: technology and facilities

    500 <2010.7.20 > RHF <2010.6.8 > 600 <2011.9 2014.3 > <2010.6.10 > <2010.6.2 > <2010.6.2 > UV <2010.4.23 > EX < > < 1.5 > <2010.4.21 > DC PUE1.4 PUE Power Usage Effectiveness 9 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  10. Slide 10: Group company results

    2010 7 28 10 1Q 09 1Q 2010 637 N.A. 327 2010/7/29 76 N.A. [ ] 5449 62% 42 N.A. 253 349 N.A. 74 2010/7/30 5 N.A. [ ] 5657 66% -0 N.A. 2010 4 1,977 641 2010/7/28 19 -19 3 [ ] 80% 10 -12 9,196 N.A. 2010/7/30 78 N.A. 34% 52 N.A. 2010 4 [ ] 9810 1,676 N.A. 2010/8/6 143 N.A. [ ] 1819 37% 76 N.A. 828 N.A.

  11. Slide 11: Consolidated balance sheet

    (2010/3 6 10/06 10/03 10/06 10/03 16,288 16,421 -133 13,357 13,700 -343 815 781 +34 4,664 4,498 +166 4,065 4,578 -513 3,690 3,827 -137 9,013 8,547 +466 5,002 5,374 -372 2,394 2,514 -120 12,584 12,966 -382 9,962 9,918 +44 2,621 3,047 -426 32,275 33,602 -1,327 25,941 26,667 -726 18,680 18,783 -103 487

  12. Slide 12: Crude steel production and sales trends

    2010 2003 2004 2005 2006 2007 2008 2009 1,600 1,850 2,050 2,700 3,100 3,000 3,300 3,200 (1,200) (1,400) (1,650) (2,000) (2,300) (2,200) (2,700) (2,200) 1,840 1,805 1,833 1,925 2,440 2,737 2,840 3, 100 (1,340) (1,299) (1,306) (1,342) (1,749) (1,963) (2,136) (2,300) 4,000 4,000 5 13 3 600 3,500 2 12 5

  13. Slide 13: 2. Forecast

    2. 2011 3 13 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  14. Slide 14: FY2010 consolidated forecast

    10 09 1Q 2Q A B 9,706 10,794 20,500 19,143 +1,088 +1,357 510 540 1,050 1,034 +30 +16 618 632 1,250 987 +14 +263 2,500 422 178 600 349 -244 +251 1,000 196 454 650 638 +258 +12 -72 0 -72 58 +72 -130 268 332 600 603 +64 -3 <4.3> <5.3> <9.5> <9.6> <+0.9> <-0.1> 14 Copyright (C) 2010 NIPPON STEEL Corpora

  15. Slide 15: Forecast by segment

    10 09 A B 20,500 1,250 6.1% 15,733 -869 -5.5% +4,767 +2,119 17,500 1,100 6.3% 12,595 -1,052 -8.4% +4,905 +2,152 3,650 185 3,842 232 -192 -47 1,300 50 3.8% 1,548 119 7.7% -248 -69 400 30 7.5% 438 24 5.5% -38 +6 950 50 5.3% 865 47 5.4% +85 +3 300 10 3.3% 291 -1 -0.3% +9 +11 700 45 6.4% 698 42 6.0% +2

  16. Slide 16: Ordinary income forecast changes

    10 09 A B A B 20,500 19,143 +1,357 1,250 987 +263 600 349 +251 500 416 +84 185 284 -99 ( ) -35 -65 +30 +80 +1,650 -170 -100 +250 +800 +700 #3 +120 #2 -20 -2,250 16 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  17. Slide 17: Non-consolidated forecast factors

    10 A B A B 9,706 10,794 20,500 +1,088 618 632 1,250 +14 422 178 600 -244 141 358 500 +217 90 97 185 +7 -35 -0 -35 +35 ( ) +220 +650 +10 +50 -60 +50 -50 -160 +50 -750 -250 +40 17 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  18. Slide 18: Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

    18 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  19. Slide 19: 3. Topics

    3. 19 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  20. Slide 20: RHF rotary hearth furnace technology

    45%< > 25%> RHF<Rotary Hearth Furnace> (US$/dmt) (US$/wmt) 20 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  21. Slide 21: Super Coke Oven SCOPE21

    Super Coke Oven for Productivity and Environmental 2.4 16 Enhancement toward the 21st Century 21 x 30 10 50 SCOPE 250 CO2 (2000~2008 ) 320 -CO2 10 40 Dry-cleaned and Agglomerated Precompaction System 15 1.2 21 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  22. Slide 22: RHF joint venture with POSCO

    RHF POSCO ® NO.3 RHF 20 PNR JV 1 2 3 4 JV 20 20 20 20 2011 POSCO 20 HBI RHF 1 2 3 20 10 30 RHF 2011 140 RHF 140 80 22 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  23. Slide 23: Overseas business network

    Garphyttan 100 BlueScope Steel NSP 61 < > PATIN < > 25 ) NBC China < > 42 SAFAL STEEL 7 STP 16 POSCO Vietnam 15 SNP 60 LATINUSA 35 NBC Thailand 42 PEB STEEL 12 Nippon Steel Pipe Nippon EGalv Steel 10 Vietnam 51 YKGI 10 23 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  24. Slide 24: Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

    24 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  25. Slide 25: BlueScope Steel alliance

    BlueScope Steel Home Page Metal Bulletin, 25 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  26. Slide 26: Power generation and energy businesses

    CO2 125MW JV ( 25MW x 3 H25.4 LNG 110MW H22.4 5000t/ H22.11 * JV JV ( ) 145MW ( ) H27.2 (H24.10 152.9MW H24.6 (H22.3 26 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  27. Slide 27: Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

    - <2010.7.28 > ( 4 ) 2-5-2 Home Page 27 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  28. Slide 28: NSSC stainless steel product development

    - <2010.7.22 > NSSC (Sn) FW (Cr) NSSC®FW1( ) 14%Cr Sn NSSCFW1 18%Cr IH NSSCFW NSSC Sn Sn NSSCFW1 14%Cr 18%Cr 18%Cr (Cr ) 12 ( ) NSSC®FW2 NSSC 28 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  29. Slide 29: 4. Steel market

    4. 29 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  30. Slide 30: World steel demand outlook

    2007 08 09 10 11 13.2 13.3 12.2 12.4 13.1 WSA 10 7 09 11 10 4 11 07 2002 13.1 13.2 10 +5~7%/ 13.3 12.4 12.2 8.5 +1%/ 7 +5%/ 4.5 GDP 2001-2007 1.9X OECD 1.1X 1 1 / 30 / : world steel association 30 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  31. Slide 31: Raw material price trends

    $/t 10 7 POSCO 10 7 7/20 / 7/13 CIS 31 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  32. Slide 32: Economic growth forecasts by region

    2010 7 8 IMF 2010 2011 2003 2004 2005 2006 2007 2008 2009 (2010.4.21) 3.6 4.9 4.4 5.1 5.2 3.0 -0.6 4.2 4.6 4.3 1.9 3.2 2.6 3.0 2.7 0.5 -3.2 2.3 2.6 2.4 2.5 3.6 3.1 2.8 2.1 0.4 -2.4 3.1 3.3 2.9 0.8 2.1 1.6 2.8 2.7 0.6 -4.1 1.0 1.0 1.3 1.4 2.7 1.9 2.4 2.3 -1.2 -5.2 1.9 2.4 1.8 6.3 7.5 7.1 7.9 8.3 6.1

  33. Slide 33: World crude steel production

    ( ) 2010 2008 2009 1 2 3 4 5 6 1-6 (6 ) 1,329.7 1,226.5 113.4 108.2 122.2 121.7 124.2 118.8 795.8 1,591.6 118.7 87.5 8.7 8.4 9.3 9.0 9.7 9.4 54.6 109.1 91.5 58.1 6.2 6.2 7.1 6.8 7.2 7.2 41.0 82.0 198.6 139.1 13.6 13.3 15.5 15.4 16.3 15.3 90.0 180.0 68.5 60.0 5.2 5.0 5.6 5.6 5.8 5.4 32.7 65.4 33.7 26

  34. Slide 34: Quarterly data

    09 10 10 1Q 2Q 3Q 4Q 1Q 2Q 1,909 2,424 2,661 2,651 9,645 2,806 2,682 1 484 635 770 768 2,657 777 840 537 738 872 845 2,992 864 900 <482> <673> <810> <785> <2,750> <800> <840 473 674 760 802 2,709 776 790 88.4 72.7 72.5 72.7 75.4 79.1 87 33.1 38.9 38.8 41.3 38.4 42.5 40 \ 97 95 89 90 92 93 90 34 Copy

  35. Slide 35: Quarterly data: non-consolidated

    09 10 10 1Q 2Q 3Q 4Q 1Q 2Q 1,383 1,460 1,506 1,511 5,860 1,510 1,549 61.4% 65.3% 67.3% 67.5% 65.4% 67.4% 66.9% 1,106 1,159 1,202 1,221 4,688 1,202 1,242 491 473 471 462 1,897 460 481 615 686 731 759 2,791 742 761 153 151 149 148 601 147 144 205 252 280 289 1,026 284 291 277 301 304 290 1,172 308 307

  36. Slide 36: Quarterly data by segment

    09 10 1Q 2Q 3Q 4Q 1Q 20 18 20 19 77 20 - 1,019 1,027 1,008 1,084 4,138 1,120 +10% 171 215 247 254 887 231 +35% 76 101 117 115 409 120 +58% 152 197 227 203 779 203 +34% 3 4 8 11 26 12 +300% 35 36 43 59 173 65 +86% 14 19 20 24 77 26 +86% 455 445 440 440 1,780 440 ▼3% 36 Copyright (C) 2010 NIPPON STEEL

  37. Slide 37: Crude steel production history

    2010/6/29 10 98 99 00 01 02 03 04 05 06 07 08 09 9,098 9,800 10,690 10,206 10,979 11,100 11,290 11,272 11,774 12,151 10,550 9,645 5,488 +46. 8% FY10 2Q 2,320 2,562 2,784 2,614 2,990 3,015 2,988 3,120 3,160 3,311 2,861 2,750 37 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  38. Slide 38: Raw material prices

    US$/dmt US$/wmt 38 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  39. Slide 39: Energy and raw material prices

    (US$/bbl US$/MT) US$/ / 501 360 73.5 27.1 03 04 05 06 07 08 09 10 7 7 39 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  40. Slide 40: Iron ore and coal prices

    US /WMT, 170 t US$/T,CIF 450 18.2 6.1 03 04 05 06 07 08 09 10 7 7 40 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  41. Slide 41: H Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

    H 90.0 80.0 72.0 00 01 02 03 04 05 06 07 08 09 10 00 01 02 03 04 05 06 07 08 09 10 41 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  42. Slide 42: H Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

    H 42 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  43. Slide 43: Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

    43 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  44. Slide 44: Share price and investments

    2006 4 2006/04/01 =1.0 07/7/23 958 07/09/28 827 2010/07/27 08/03/31 295 505 9,497 08/09/30 06/04/01 387 455 17,333 17,963 09/09/30 10/03/31 09/03/31 328 367 16,127 263 12,526 10,129 11,090 11,260 8,110 44 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

  45. Slide 45: USIMINAS

    USIMINAS 5,000 6,000 ( ) 45 Copyright (C) 2010 NIPPON STEEL Corporation All Rights Reserved.

Nippon Steel — Q1 FY2010 Earnings Presentation on 6ix