Nippon Steel Corp. · TSE:5401

Nippon Steel — Q1 FY2009 Earnings Presentation

37 slides from Nippon Steel's earnings presentation, Jul 29, 2009

  1. Slide 1: Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

    2010 3 2009 7 29 1 Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

  2. Slide 2: Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

    2010 3 2 Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

  3. Slide 3: World economic growth forecasts (IMF)

    2009 7 8 IMF 2009 2010 2003 2004 2005 2006 2007 2008 (09.04.22) (09.04.22) 3.6 4.9 4.4 5.1 5.0 3.2 -1.3 -1.4 1.9 2.5 1.9 3.2 2.6 3.0 2.6 0.9 -3.8 -3.8 0.0 0.6 2.5 3.6 3.1 2.8 2.0 1.1 -2.8 -2.6 0.0 0.8 0.8 2.1 1.6 2.8 2.6 0.9 -4.2 -4.8 -0.4 -0.3 1.4 2.7 1.9 2.4 2.4 -0.6 -6.2 -6.0 0.5 1.7 6.3 7.5 7.1

  4. Slide 4: World crude steel production (world steel association)

    08 Q 2Q 3Q 10 11 12 09 1 2 3 4 5 6 ( ) 1,028 1,035 1,015 1,010 882 748 637 548 574 572 649 689 3 3,084 3,106 3,045 4.4% 3.9% 1.8% 2.7% 12.9% 27.9% 37.9% 44.2% 46.7% 43.6% 38.5% 33.6% 849 849 834 676 470 392 409 395 395 390 431 445 2,547 2,548 2,503 8.4% 2.0% 1.9% 20.3% 42.7% 53.6% 52.7% 51.9% 54.1%

  5. Slide 5: Crude steel production trend

    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 4,081 6/29 3,106 3,045 98 1-3 2,640 2,159 28.7% 13.7% 2,171 830 826 1,910 ( ) 7371,760 98 1-3 668 535 482 467 09 2,320 2,562 2,784 2,614 2,990 3,015 2,988 3,120 3,160 3,311 2,861 1,150 1Q 1

  6. Slide 6: 1Q 2Q 3Q

    08 09 1Q 2Q 3Q 4Q 1Q 104 29 29 26 20 20 31% 5,956 1,597 1,654 1,465 1,240 1,000 37% 999 288 291 259 161 171 41% 560 171 173 149 67 80 53% 705 216 198 193 98 148 31% 66 22 22 16 6 4 80% 423 123 129 103 68 49 60% 146 47 46 35 18 14 70% 1,850 465 465 480 440 435 7% 6 Copyright (C) 2009 NIPPON STEEL Cor

  7. Slide 7: 1Q 2Q 1Q

    08 09 09 1Q 2Q 3Q 4Q 1Q 2Q 6,995 1,914 1,909 1,704 1,468 1,381 1,477 61.2% 65.2% 62.5% 58.4% 57.2% 63.2% 63.5% 5,829 1,556 1,572 1,472 1,229 1,117 1,186 2,557 625 670 668 594 476 501 3,272 931 902 804 635 641 685 622 156 158 157 151 146 144 1,187 357 345 286 199 219 251 1,166 358 337 232 239 264 291

  8. Slide 8: 1Q 2Q 3Q

    08 09 09 1Q 2Q 3Q 4Q 1Q 2Q 08 08 09 6,151 4,400 4,081 10,550 3,106 3,045 2,640 1,760 1,910 2,171 1,607 1,241 1,130 2,849 804 804 747 495 484 646 1,823 1,301 1,270 1 3,124 916 906 797 504 538 732 <1,657> <1,204> <1,150 > <2,861> <830> <826> <737> <467> <482> <668> 1,637 1,183 1,130 2,820 808 829 712

  9. Slide 9: 1Q 1Q Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

    09 08 1Q 1Q 7,450 11,985 -4,535 -534 1,197 -1,731 -566 1,440 -2,006 -64 35 -99 -422 827 -1,249 <-6.7> <13.2> <-19.9> ( ) 2,000 1,500 +1,000 ( ) -210 1,600 1,000 08 Q 800 -150 09 Q 800 500 +270 +40 -250 0 335 808 473 -500 -1,100 -1,000 9 Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved

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

    09 1 08 1 (A B) (A) (B) 7,450 -534 -7.2% 11,985 1,197 10.0% -4,535 -1,731 5,788 -649 -11.2% 10,302 1,116 10.8% -4,514 -1,765 1,939 131 2,023 83 -83 +48 888 77 8.7% 724 22 3.0% +164 +55 215 10 4.7% 110 10 9.1% +105 379 25 6.6% 647 34 5.3% -268 -9 129 -1 -0.0% 192 -0 -0.0% -63 -1 326 19 5.8% 348 15 4.

  11. Slide 11: Balance sheet and D/E ratio

    2009/3 6 09/03 09/06 09/03 09/06 48,706 49,624 48,706 49,624 -1,015 +379 17,790 - 847 18,805 - 434 -742 26,958 27,337 +1,104 14,542 15,646 D/E 0.87 0.91 +1,933 +506 +538 +1,429 -484 29,901 31,834 8,110 9,958 +852 21,748 22,286 226 1,078 +144 11 Copyright (C) 2009 NIPPON STEEL Corporation All Rights

  12. Slide 12: Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

    ( ) 5,775 5,775 3,273 4,822 5,555 4,250 2,902 5,443 4,300 12 Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

  13. Slide 13: Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

    2010 3 13 Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

  14. Slide 14: Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

    09 08 ( ) 35,000 15,500 47,698 26,021 -12,698 -10,521 0 -1,000 3,429 2,484 -3,429 -3,484 0 -1,100 3,361 2,622 -3,361 -3,722 -500 -1,300 2,036 1,621 -2,536 -2,921 0 -800 1,550 1,616 -1,550 -2,416 < > <0.0> <-12.7> <24.6> <25.7> <-24.6> <-38.4> 14 Copyright (C) 2009 NIPPON STEEL Corporation All Rights

  15. Slide 15: A C C A

    09 08 A B A B C A C 15,500 21,676 -6,176 15,000 +500 -1,000 945 -1,945 -1,000 -1,100 739 -1,839 -1,000 -100 -1,300 415 -1,715 -950 -350 -800 -65 -735 -600 -200 < > <-12.7> <-1.0> <-11.7> <-9.5> <-3.2> ( ) 1,000 739 500 –1,250 50 +400 08 +530 1,183 1,130 0 -200 +2,000 +50 -500 -70 720 -50 -1,000 -450

  16. Slide 16: Q Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

    09 09 Q < > 888 +164 1,600 +200 77 +55 100 +40 215 +105 400 10 30 379 -268 800 25 -9 30 -10 129 -63 250 -1 -1 -10 326 -22 700 19 +4 30 1,939 -83 3,750 +200 131 +48 180 +30 16 Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

  17. Slide 17: Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

    09 08 35,000 15,500 47,698 26,021 -12,698 -10,521 0 -1,000 3,429 2,484 -3,429 -3,484 28,000 12,500 40,386 22,337 -12,386 -9,837 -300 -1,100 3,070 2,296 -3,370 -3,396 8,100 3,750 8,904 4,435 -804 -685 410 180 385 209 +25 -29 3,600 1,600 3,866 1,687 -266 -87 200 100 246 59 -46 +41 800 400 701 255 +99

  18. Slide 18: Group company results

    1,265 154 300 630 2009/7/29 208 34 37 50 [ ] 5449 (61% 120 19 21 28 366 N.A. 130 350 (2009/8/5) 0.95 N.A. -9 2 2009 [ ] 5657 (67%) -1.7 N.A. -5 0 331 3,036 352 N.A. N.A. 2009/7/29 258 -343 -26 N.A. N.A. 73 [ ] (80%) -214 -18 N.A. N.A. 1,627 164 380 1,000 2009 6 15 2009/7/27 48 -65 -82 5 ( ) [ ] 5481

  19. Slide 19: Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

    19 Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

  20. Slide 20: Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

    20 Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

  21. Slide 21: Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

    21 Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

  22. Slide 22: Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

    22 Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

  23. Slide 23: Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

    2009 2003 2004 2005 2006 2007 2008 ( ) 1,600 1,850 2,050 2,700 3,100 3,000 3,800 (1,840) (1,805) (1,833) (1,925) (2,440) (2,737) (2,900) 1,200 1,400 1,650 2,000 2,300 2,200 3,000 (1,340) (1,299) (1,306) (1,342) (1,749) (1,963) (2,200) 4,000 4,000 3,500 3,500 460 200 800 3,000 100 3,000 2,900 2,500 2

  24. Slide 24: 4Q 3Q 2Q

    500 3.0 1.71 1.65 1.66 1.60 1.55 700 1.51 2.482.482.46 2.35 2.5 1.5 2.29 2.31 400 1.36 2.23 2.20 2.15 2.16 2.19 2.14 2.18 1.20 1.16 1.14 1.12 1.87 1.85 2.0 600 1.10 1.83 1.07 1.05 1.04 1.03 1.71 300 1.01 1.01 585588 1.63 1.61 0.96 572 577 1.58 0.94 1.50 561566562 0.90 558 1.0 277 279 1.47 270267 264

  25. Slide 25: Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

    3.0 3.0 2.9 2.9 2.9 1,000 2.8 3.0 2.7 2.7 2.7 2.7 2.7 2.5 2.5 2.5 2.5 2.5 2.4 2.4 2.4 2.3 2.3 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 800 2.1 743 740 702 2.0 676 682 621 608 619 626 598 607 584 584 582 571 600 553 561 542 542 544 565 554 498 468 454 445 423 1.0 400 372 337 303 200 0.0 07 01 02 03 04 05 06 0

  26. Slide 26: H (1.0xS) 19mm

    H 140 140 120 120 101 (1.0xS) 100 100 19mm 80 80 70 72 60 H 60 63 (200mm 100mm) (2.3xS) 40 40 20 20 0 0 00 01 02 03 04 05 06 07 08 09 00 01 02 03 04 05 06 07 08 09 26 Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

  27. Slide 27: CIS

    1,200 1,000 800 8 $599 600 CIS 400 200 0 07.1 4 7 10 08.1 4 7 10 09.1 4 6 27 Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

  28. Slide 28: Iron ore and coal prices

    140 350 US$/dmt US$/wmt 120 300 100 250 80 Rio Tinto 200 08 44 $71 60 150 BMA Rio Tinto 08 57 40 08 33 100 $128 $60 20 50 0 0 03 04 05 06 07 08 09 03 04 05 06 07 08 09 28 Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

  29. Slide 29: US$/t US$/MT -(JAPAN)

    140 160 1,200 US$/t 170 T US$/bbl US$/MT -(JAPAN) 140 120 1,000 120 100 800 100 80 80 600 60 66.5 60 473 400 40 35.9 40 20 200 20 12.9 0 0 0 03 04 05 06 07 08 09 7 03 04 05 06 07 08 09 7 29 Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

  30. Slide 30: Scrap prices

    1,000 800 80,000 US$/T,CIF US$/T, CIF /MT 800 600 60,000 600 10 400 40,000 400 295 335 26,761 200 (No.1HMS) 20,000 200 0 0 0 03 04 05 06 07 08 09 7 03 04 05 06 07 08 09 7 30 Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

  31. Slide 31: Ferroalloy and nickel prices

    30.0 6.0 4,000 7,000 Fe Mn LME US$/lb US /lb-Cr MB US$/T US$/T CIF 3,500 6,000 25.0 5.0 3,000 5,000 20.0 4.0 2,500 4,000 15.0 3.0 2,000 Fe Mn 3,000 1,500 10.0 HCFeCr 2.0 2,460 1.94 2,000 7.54 1,000 1,049 5.0 1.0 0.97 1,000 500 LCFeCr RN 0.1% US 0.0 0.0 0 0 03 04 05 06 07 08 09 7 03 04 05 06 07 08 09

  32. Slide 32: 2005 =100) 2005 =100 05 1 06 1 07 1 08 1 09 1

    160 150 2005 =100) 2005 =100 140 130 130 120 100 110 70 100 05 1 06 1 07 1 08 1 09 1 5 130 90 (2005 =100) 110 80 70 90 EU 60 70 50 50 40 05 1 06 1 07 1 08 1 09 1 4 1 1 1 1 1 1 1 1 1 1 5 00 01 02 03 04 05 06 07 08 09 32 Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

  33. Slide 33: Fourin

    200 150 138 121 105 114 100 86 86 50 38 38 0 10 11 12 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 08 09 20 20 Fourin 33 Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

  34. Slide 34: Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

    6,000 2,000 5,759 5,729 5,000 1,500 4,000 3,000 1,000 897 2,000 500 1,000 0 - 4 5 6 7 8 9 2 3 4 5 6 7 8 9 2 3 4 5 6 7 8 9 2 3 4 5 6 10 11 20 12 10 11 20 12 10 11 20 12 3 1 1 1 06 07 08 09 20 34 Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

  35. Slide 35: Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

    6,000 600 5,529 5,000 500 463 4,000 400 3,062 3,000 300 2,000 200 1,000 100 34 0 0 08 10 11 12 09 1 2 3 4 5 6 35 Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

  36. Slide 36: Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

    9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,346 2,000 1,000 1,212 0 2004 1 4 7 10 05 1 4 7 10 06 1 4 7 10 07 1 4 7 10 08 1 4 7 10 09 1 4 250 228 235 807 725 750 670 200 173 78 540 144 504 142 150 135 134 453 127 128 500 134 116 51 33 103 103 101 11 300 100 280 37 250 175 57 146 155 127 121 50 25 69

  37. Slide 37: Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

    37 Copyright (C) 2009 NIPPON STEEL Corporation All Rights Reserved.

Nippon Steel — Q1 FY2009 Earnings Presentation on 6ix