Nippon Steel Corp. · TSE:5401

Nippon Steel — FY2006 Earnings Presentation

38 slides from Nippon Steel's earnings presentation, Apr 27, 2007

1. Slide 1: Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

   2007 3 2007 4 27 0 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

2. Slide 2: Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

   1 2007 3 2 2008 3 3 1 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

3. Slide 3: I. FY2006 results (March 2007)

   I 2007 3 1 2 3 4 5 6 7 * 2007.3.1 2 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

4. Slide 4: Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

   06 05 43,021 39,063 3,958 42,800 221 25,628 25,913 285 *1 25,400 228 17,393 13,150 4,243 *1 17,400 7 5,800 5,763 37 5,700 100 4,022 4,339 317 4,100 78 1,778 1,424 354 1,600 178 5,976 5,474 502 5,800 176 3,897 3,887 10 3,950 53 2,079 1,587 492 1,850 229 237 *2 182 55 220 17 3,511 3,439 72 3,450 61 2,

5. Slide 5: Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

   06 43,021 42,800 221 25,628 25,400 228 17,393 17,400 7 5,800 5,700 100 4,022 4,100 78 1,778 1,600 178 5,976 5,800 176 3,897 3,950 53 2,079 1,850 229 237 220 17 3,511 3,450 61 2,488 2,500 12 1,023 950 73 4 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

6. Slide 6: Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

   1,070 +50 *3 05 10 *1 +200 *2 + 360 350 350 830* 5,770 +190 520 + 210 #1 150 4,600 1,170 +360 *1; 100 70 100 80 *2; *3 100 20 10 40 10 20 * 2005 200, 580, 150, 80, 120 5 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

7. Slide 7: A B Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

   A B 43,021 5,800 13.5% 39,063 5,763 14.8% + 3,958 37 42,800 5,700 *1 34,823 5,145 14.8% 31,438 5,176 16.5% + 3,385 31 34,750 5,100 3,679 130 3.5% 3,361 95 2.8% + 318 + 35 3,600 110 943 143 15.2% 1,040 130 12.5% 97 + 13 950 140 *2 *2 3,187 236 7.4% 2,984 193 6.5% + 203 + 43 3,200 230 656 31 4.8% 549

8. Slide 8: (A) (B) (A

   06 06 (A) 06 (B) (A B) 43,021 19,834 23,187 3,353 25,628 12,527 13,101 574 17,393 7,307 10,086 2,779 5,800 2,663 3,137 474 4,022 1,992 2,030 38 1,778 670 1,108 438 5,976 2,689 3,287 598 3,897 1,964 1,933 31 2,079 725 1,354 629 3,511 1,641 1,870 229 2,488 1,272 1,216 56 1,023 368 655 287 7 Copyright

9. Slide 9: Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

   580 +110 +140*3 250 150 80 3,180 170 #1 150 2,689 230 *1 230*2 +260 490 *1; *2; 130 *3 150 80 40 15 5 15 8 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

10. Slide 10: (A) (A B)

    (A) ( ) (A B) 43,021 5,800 19,834 2,663 23,187 3,137 + 3,353 474 *1 34,823 5,145 16,184 2,419 18,639 2,726 + 2,455 307 3,679 130 1,593 12 2,086 118 + 493 106 943 143 328 43 615 100 + 287 57 3,187 *2 236 1,580 *2 111 1,607 *2 125 + 27 14 656 31 318 18 338 13 + 20 5 1,565 139 701 51 864 88 + 163 37 1,

11. Slide 11: D/E (Debt Equity ratio)

    05 05 06 06 05 05 06 06 12,238 12,200 12,130 108 D/E D/E (Debt (Debt Equity Equity ratio) ratio) 0.73 0.7 0.64 0.09 D/E 21,000 2.37 2.5 18,719 05 06 07/3 19,000 108 2 17,000 15,612 3,576 15,000 1.5 5,976 1.66 12,822 2,400 13,000 12,238 12,130 3,000 11,000 1 2,250 1.08 860 9,000 0.73 1,100 0.64 0.5 2

12. Slide 12: Cash flow

    06 05 C F A 4,784 3,929 6,214 5,656 2,451 2,117 1,924 1,833 903 1,443 C F B 3,746 2,268 FCF( ) A+B 1,037 1,661 1,230 300 C F 193 1,361 ( ) 108 584 ( ) 855 337 ( ) 1,097 501 ( ) 3,000 11 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

13. Slide 13: (07/3E) (06/3E) 07/3E 06/3E

    06 (07/3E) 05 (06/3E) 07/3E 06/3E 53,449 37,139 45,427 34,465 8,022 2,674 1 1 +818 +435 2 2 +330 3 +2,694 +3,511 860 3 ( )+488 4 1,103 4 +3,000 12 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

14. Slide 14: Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

    13 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

15. Slide 15: II

    II 14 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

16. Slide 16: Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

    15 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

17. Slide 17: Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

    16 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

18. Slide 18: Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

    20 30 15 20 20 30 17 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

19. Slide 19: III. FY2007 forecast (March 2008)

    III 2008 3 1 2 3 4 18 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

20. Slide 20: Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

    47,600 22,900 43,021 19,834 4,579 3,066 26,600 13,100 25,628 12,527 972 573 21,000 9,800 17,393 7,307 3,607 2,493 5,800 2,650 5,800 2,663 13 4,200 1,900 4,022 1,992 178 92 1,600 750 1,778 671 178 79 6,000 2,700 5,976 2,689 24 11 4,000 1,800 3,897 1,964 103 164 2,000 900 2,079 725 79 175 237 185 237

21. Slide 21: Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

    700 350 +150 350 220 *1 +320 *2 6,350 450 200 360* +30 *3 5,600 750 *1; 200 30 *2; *3 50 80 25 25 10 10 * 360 20 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

22. Slide 22: A B Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

    A B 47,600 5,800 12.2% 43,021 5,800 13.5% + 4,579 39,200 5,150 13.1% 34,823 5,145 14.8% + 4,377 + 5 3,600 180 5.0% 3,679 130 3.5% 79 + 50 1,100 140 12.7% 943 143 15.2% + 157 3 *1 *1 2,600 200 7.7% 3,187 236 7.4% 587 36 700 35 5.0% 656 31 4.7% + 44 + 4 1,650 145 8.8% 1,565 139 8.9% + 85 + 6 1,250 50

23. Slide 23: D/E (Debt Equity ratio)

    05 05 06 06 07 07 06 06 07 07 12,238 12,130 12,000 130 D/E D/E (Debt (Debt Equity Equity ratio) ratio) 0.73 0.64 0.6 0.04 D/E 21,000 2.37 2.5 18,719 19,000 06 07 08/3 2 130 17,000 15,612 15,000 6,000 1.66 1.5 2,400 12,822 13,000 12,238 12,130 12,000 1,400 930 11,000 1 1.08 1,140 9,000 0.73 0.64 0.5

24. Slide 24: IV

    IV 23 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

25. Slide 25: Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

    11,775 5,805 5,969 11,272 5,680 5,591 3,547 1,804 1,743 3,190 1,638 1,552 1 3,064 1,541 1,522 3,132 1,581 1,552 3,452 1,716 1,737 3,395 1,708 1,688 <3,160> <1,571> <1,589> <3,120> <1,573> <1,547> 3,151 1,542 1,609 2,959 1,476 1,484 75.3 73.4 77.1 74.3 73.4 75.2 32.3 32.3 32.4 30.8 31.6 30.1 117 115

26. Slide 26: Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

    7,948 7,930 7,762 5,061(64%) 5,000(63%) 4,818(62%) 6,427 6,426 6,319 2,733 2,772 2,782 3,694 3,654 3,537 586 569 561 1,418 1,408 1,341 1,521 1,504 1,443 125 127 125 7,236 7,371 7,222 1,800 1,750 1,634 1,160 1,150 1,089 800 766 771 25 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserv

27. Slide 27: Raw material prices

    2007.4 (US$/t, CIF ) (US$/t, FOB) (US$/t FOB) US$/t 170 t 26 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

28. Slide 28: Commodity market prices

    2007.4 (MWM US$/lb-Mo) (MBM US$/kg-V) (US$/t LME ) (OPEC , US$/ , ) PLATT'S JAPAN 380CST, US$/ 27 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

29. Slide 29: Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

    623 615 572 573 559 567 555 548 554 542 531 537 536 533 533 520 524 528 526 536 536 537 512 503 464 463 458 429 421 426 413 414 404 406 393 398 393 389 398 376 371 376 377 374 386 384 393 360 28 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

30. Slide 30: Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

    03 04 05 06 07 1,600 1,840 1,850 1,805 2,050 1,833 2,700 1,925 3,100 2,500 1,200 1,340 1,400 1,299 1,650 1,306 2,000 1,342 2,300 1,900 29 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

31. Slide 31: (Gr) + 325 + 5 320 329 332 344 2005 2006 2006 7 6

    (Gr) 06 05 04 03 02 258 + 7 251 258 259 258 67 2 69 71 73 86 325 + 5 320 329 332 344 2005 2006 2006 7 6 2002 2006 30 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

32. Slide 32: Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

    ( ) 31 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

33. Slide 33: Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

    10 07.3 6,806,981 / 412,484 60 50 40 30 20 10 0 32 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

34. Slide 34: Key financial indicators

    03 04 05 06 29,258 33,893 39,063 43,021 47,600 1,728 3,714 5,474 5,976 6,000 ) 4,600 5,600 6,350 ROS 5.9 11.0 14.0% 13.9% 12.6 ) 11.8 13.0 13.3 ROA 5.3 10.1 12.4% 11.5% N.A. EBITDA 2,758 5,586 7,491 8,074 8,500 9,385 11,884 16,778 18,928 N.A. 15,612 12,822 12,238 12,130 12,000 D/E 1.66 1.08 0.73 0.6

35. Slide 35: V

    V 34 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

36. Slide 36: Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

    . 2007 3 1 2007 4 13 35 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

37. Slide 37: Nippon Steel Bar & Wire (Thailand)

    2006 4 100 2006 6 15 NS 2006 7 2006 10 2006 12 / 1.7 / 44.7 36.3 Nippon Steel Bar & CH Wire (Thailand) 2007 2 5 (1) (2) (3) 2007 1 2007 4 3 2007 1 2007 7 2006 5 2006 11 2007 3 36 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

38. Slide 38: Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

    37 Copyright (C) 2006-2007 NIPPON STEEL Corporation All Rights Reserved.

Nippon Steel — FY2006 Earnings Presentation on 6ix