Nippon Steel Corp. · TSE:5401
Nippon Steel — Shareholder Meeting (June 2022)
15 slides from Nippon Steel's shareholder meeting presentation, Jun 23, 2022
Slide 1: Nippon Steel's Business Challenges and Measures to Be Taken
Nippon Steel’s Business Challenges and Measures to Be Taken 1
Slide 2: Fiscal 2021 financial results and Fiscal 2022 strategy
Fiscal 2021 financial results and Fiscal 2022 strategy 2
Slide 3: FY2021: Highest post-integration business profit
FY2021: Highest post-integration business profit 48.23 93.81 Crude steel production (Non-consolidated; Million tons/year) 38.68 47.13 Consolidated business profit (Billion yen/year) 1H 2H ’14 ’15 ’16 ’17 ’18 ’19 (Annualized) (Annualized) ’21 result ’20 3
Slide 4: Business profit by Breakdown
Business profit by Breakdown 938.1 690.0 Underlying Profit, excl. inventory valuation, etc. Three non-steel segments 62.0 600 Other steel group 129.0 (50) companies 471.3 (100) Raw material interests 45.0 119.0 (100) 122.0 Overseas steel business 135.0 (100) 56.0 13.0 Domestic steel business Non-con
Slide 5: Uncertain external environment for FY2022
Uncertain external environment for FY2022 Very sluggish Chinese Supply constraints of Soaring energy/material economy semiconductors, etc. prices Situation in Russia and Ukraine Rapid depreciation of the yen Aim to achieve 600 billion yen or more in business profit in fiscal 2022 even in an uncertai
Slide 6: Progress of the Nippon Steel Group's Medium- to Long-Term Management Plan
Progress of the Nippon Steel Group’s Medium- to Long-Term Management Plan 6
Slide 7: Medium- to Long-Term Management Plan: Four Pillars
Medium- to Long-Term Management Plan: Four Pillars 1. Rebuilding our domestic steel business 2. Deepening and expanding overseas business 3. Taking on the challenge of carbon neutrality 4. Promoting DX strategies 7
Slide 8: 1. Rebuilding our domestic steel business
1. Rebuilding our domestic steel business Complete the production facility structural measures Flexibly respond to changes in the environment (Shortened business cycles) Steadily improve base operation performance Improve direct contract prices and review contracts and business practices 8
Slide 9: 2. Deepening and expanding overseas business through selective concentration
2. Deepening and expanding overseas business through selective concentration: Raise profitability in growing overseas markets Overseas business EBITDA (US$ million) EBITDA (US$ million) Contribution to consolidated business profit 1,010 628 985 940 135 466 ▲32 326 255 440 '20. '20. '21. '21. '22. '2
Slide 10: 3. Road map to carbon neutrality
3. Road map to carbon neutrality Provision of high-performance steel Contributing to lower CO2 products emission by society Provision of solutions Hydrogen injection into blast furnace Decarbonization in High-grade steel production in large-sized electric arc furnace steelmaking processes 100% hydro
Slide 11: 4. Promoting DX strategies
4. Promoting DX strategies Aiming to become a digital advanced company in the steel industry Maximum use of our rich and sophisticated proprietary data Drastic enhancement of Faster decision making problem-solving ability 11
Slide 12: Thank you, our shareholders, for your continued understanding and support
Thank you, our shareholders, for your continued understanding and support 12
Slide 13: English translation of presenter's script, June 23, 2022
English translation from the original Japanese-language presentation for reference purpose only June 23, 2022 Nippon Steel Corporation The 98th General Meeting of Shareholders Nippon Steel’s Business Challenges and Measures to Be Taken Presenter: Eiji Hashimoto, President I would like to explain Nip
Slide 14: Presenter's script: production and sales measures
In addition, with the suspension of four blast furnaces, we have streamlined the capacity, which has then enabled us to carefully choose order intake and to make progress concerning the longstanding issue of improving direct contract-based prices for customers. The implementation of these fundamenta
Slide 15: Presenter's script: overseas business and carbon neutrality
With regard to deepening and expanding our overseas business, we have significantly renewed our highest earnings levels, as we made progress in selectively concentrated operation. We believe that these factors have led to higher than planned earnings in fiscal 2021, the first year of the medium- to