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FORM 6-K

 

 

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of February 2019

Commission File Number: 333-228135

 

 

NIPPON STEEL & SUMITOMO METAL CORPORATION

(Translation of registrant’s name into English)

 

 

6-1, Marunouchi 2-chome

Chiyoda-ku, Tokyo 100-8071

Japan

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F   ☒             Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 

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Information furnished on this form:

EXHIBIT

 

Exhibit
Number

    
1.    Flash report, dated February 6, 2019, on the consolidated financial results for the third quarter of fiscal 2018 (April 1, 2018-December 31, 2018) < under Japanese GAAP >.
2.    Supplementary information on the financial results for the third quarter of fiscal 2018.
3.    Press release, dated February 6, 2019, announcing the revision in forecasts for dividend.
4.    Press release, dated February 6, 2019, announcing the execution of a basic integration agreement for the integration of the stainless steel sheet businesses of Nippon Steel  & Sumitomo Metal Corporation, Nisshin Steel Co., Ltd. and Nippon Steel & Sumikin Stainless Steel Corporation, and the execution of a company split (simplified absorption-type split) agreement between Nippon Steel  & Sumitomo Metal Corporation and Nippon Steel & Sumikin Stainless Steel Corporation.
5.    Press release, dated February 6, 2019, announcing conclusion of integrated basic agreement on integration of stainless steel sheet businesses.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

        NIPPON STEEL & SUMITOMO METAL CORPORATION
Date: February 7, 2019     By:  

/s/ Kazumasa Shinkai

      Kazumasa Shinkai
      Executive Officer, Head of General Administration Division

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Flash Report

Consolidated Basis

Results for the Third Quarter of Fiscal 2018

(April 1, 2018—December 31, 2018)

< under Japanese GAAP >

February 6, 2019

 

Company name:   Nippon Steel & Sumitomo Metal Corporation
Stock listing:   Tokyo, Nagoya, Sapporo, Fukuoka stock exchanges
Code number:   5401
URL:   http://www.nssmc.com/en/index.html
Representative:   Kosei Shindo, Representative Director and President
Contact:   Fumiaki Ohnishi, General Manager, Public Relations Center
Telephone:   +81-3-6867-2130
Scheduled date to submit Securities Report:   February 13, 2019
Scheduled date to pay dividends:   -
Preparation of supplemental explanatory materials:   Yes
Holding of quarterly financial results meeting:   Yes (for investment analysts)

(Figures of less than ¥1 million have been omitted.)

1. Consolidated Financial and Operating Results through the Third Quarter of Fiscal 2018

 

  

  (April 1, 2018—December 31, 2018)

(1) Consolidated Operating Results (Accumulated)

 

     (Percentage figures are changes from the same period of the previous fiscal year.)  
     Net sales      Operating profit      Ordinary profit      Profit attributable to
owners of parent 		 
   Millions of yen      %      Millions of yen      %      Millions of yen      %      Millions of yen      %  

Third quarter of Fiscal 2018

     4,519,103        8.5        150,717        9.2        253,284        12.3        231,639        48.4  

Third quarter of Fiscal 2017

     4,164,556        25.0        138,031        122.1        225,484        107.8        156,056        162.7  
(For reference) Comprehensive income:    Third quarter of Fiscal 2018    ¥ 26,410 million    (91.5)%   
   Third quarter of Fiscal 2017            ¥ 310,262 million            368.1%   

 

     Earnings per share      Earnings per share
after full dilution 		 
   Yen      Yen  

Third quarter of Fiscal 2018

     262.45        —    

Third quarter of Fiscal 2017

     176.81        —    

(2) Consolidated Financial Results

 

     Total assets      Net assets      Ratio of
shareholders’ equity
to total assets 		 
   Millions of yen      Millions of yen      %  

Third quarter of Fiscal 2018

     7,710,193        3,459,992        40.3  

Fiscal 2017

     7,526,351        3,515,501        41.8  
(For reference) Shareholders’ equity:   Third quarter of Fiscal 2018            ¥ 3,104,051 million                 
                             Fiscal 2017     ¥ 3,145,450 million      

2. Dividends

 

     Dividends per share  
   End of first quarter      End of second quarter      End of third quarter      End of fiscal year      Full fiscal year  
   Yen      Yen      Yen      Yen      Yen  

Fiscal 2017

     —          30.00        —          40.00        70.00  

Fiscal 2018

     —          40.00        —       

Fiscal 2018 (Forecasts)

              40.00        80.00  

Notes:     Whether the dividends forecasts under review have been revised: Yes

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3. Consolidated Financial Forecasts for Fiscal 2018 (April 1, 2018—March 31, 2019)

 

     (Percentage figures are changes from the same period of the previous fiscal year.)  
     Revenue      Business profit (*)      Profit attributable to
owners of parent 		     Earnings per share  
   Millions of yen      %      Millions of yen      %      Millions of yen      %      Yen  

Fiscal 2018(IFRS)

     6,200,000        —          330,000        —          230,000        —          258.00  

 

Notes:

Whether the consolidated financial forecasts for fiscal 2018 under review have been revised: Yes

  

For further details, please refer to page 4 , “1. Qualitative Information for the Third Quarter of Fiscal 2018 (2) Explanation of Information on Future Estimates, Including Consolidated Earnings Forecasts.”

 

  

As for the consolidated financial forecasts for fiscal 2018 (April 1, 2018—March 31, 2019), Nippon Steel & Sumitomo Metal Corporation (NSSMC or the Company) calculates the figures based on International Financial Reporting Standards(IFRS), as the Company has decided to apply IFRS voluntarily from the consolidated financial statements in the fiscal 2018.

[Additional Information]

Consolidated Operating Results (Rough figures based on IFRS) through the Third Quarter of Fiscal 2018(Accumulated)

(April 1, 2018—December 31, 2018)

 

     (Percentage figures are changes from the same period of the previous fiscal year.)  
     Revenue      Business profit (*)      Profit attributable to
owners of parent 		     Earnings per share  
   Millions of yen      %      Millions of yen      %      Millions of yen      %      Yen  

Third quarter of Fiscal 2018(IFRS)

     4,570,000        —          260,000        —          200,000        —          226.60  

 

  (*)

Business Profit on Consolidated Statements of Profit or Loss indicates the results of sustainable business activities, and is an important measure to compare and evaluate the Company’s consolidated performance continuously. It is defined as being deducted Cost of sales, Selling general and administrative expenses and Other operating expenses from Revenue, and added Equity in profit of unconsolidated subsidiaries and affiliates and Other operating income. Other operating income and expenses is composed mainly of Dividend income, Foreign exchange gains or losses, Loss on disposal of fixed assets.

 

*

Notes

(1) Changes in significant subsidiaries during the period: None

(2) Adoption of special accounting methods for preparation of quarterly consolidated financial statements: Yes

   Note:

For further details, please refer to page 9, “2. Quarterly Consolidated Financial Statements and Main Notes (3) Notes on Quarterly Consolidated Financial Statements (Adoption of Special Accounting Methods for Preparation of Quarterly Consolidated Financial Statements).”

(3) Changes in accounting principles, changes in accounting estimates, and retrospective restatements

 (a) Changes in accounting principles accompanying revisions in accounting standards: Yes

 (b) Changes other than those in (a) above: None

 (c) Changes in accounting estimates: None

 (d) Retrospective restatements: None

   Note:

For further details, please refer to page 9, “2. Quarterly Consolidated Financial Statements and Main Notes (3) Notes on Quarterly Consolidated Financial Statements (Changes in Accounting Principles, Changes in Accounting Estimates, and Retrospective Restatements).”

(4) Number of shares issued (common shares)

 (a) Number of shares issued at the end of the period (including treasury stock)

                

   Third quarter of Fiscal 2018    950,321,402 shares
   Fiscal 2017    950,321,402 shares

 (b) Number of treasury stock at the end of the period

                

   Third quarter of Fiscal 2018    67,727,862 shares
   Fiscal 2017    67,710,915 shares

 (c) Average number of shares issued during the term (accumulated)

                

   Third quarter of Fiscal 2018    882,602,690 shares
   Third quarter of Fiscal 2017    882,634,161 shares

 

*

This report is not subject to quarterly review by accounting auditor.

 

*

Explanation of the appropriate use of performance forecasts and other related items

  

(Explanation of the appropriate use of performance forecasts)

  

The forward-looking statements included in this flash report are based on the assumptions, forecasts, and plans of the Company as of the date on which this document is made public. The Company’s actual results may differ substantially from such statements due to various risks and uncertainties.

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Nippon Steel & Sumitomo Metal Corporation (5401)

The Third Quarter of Fiscal 2018

 

Index of Attached Documents

 

  1. Qualitative Information for the Third Quarter of Fiscal 2018      2  
       (1) Explanation of Operating Results      2  
       (2) Explanation of Information on Future Estimates, Including Consolidated Earnings Forecasts      4  
  2. Quarterly Consolidated Financial Statements and Main Notes      6  
       (1) Quarterly Consolidated Balance Sheets      6  
       (2) Quarterly Consolidated Statements of Operations and   
             Quarterly Consolidated Statements of Comprehensive Income      8  
       (3) Notes on Quarterly Consolidated Financial Statements   
           (Notes on Going Concern Assumption)      9  
           (Notes in Case of Significant Changes to Shareholders’ Equity)      9  
           (Adoption of Special Accounting Methods for Preparation of Quarterly Consolidated Financial Statements)      9  
           (Changes in Accounting Principles, Changes in Accounting Estimates, and Retrospective Restatements)      9  

 

1

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Nippon Steel & Sumitomo Metal Corporation (5401)

The Third Quarter of Fiscal 2018

 

1. Qualitative Information for the Third Quarter of Fiscal 2018

(1) Explanation of Operating Results

Global and Domestic Economic Conditions in the Third Quarter of Fiscal 2018

The global economy as a whole maintained modest growth. While China’s economic growth slowed down, the economy of the United States remained strong and the economies of emerging countries in general remained firm.

The Japanese economy continued to recover moderately, as indicated by further improvements in the employment and income environments and increased capital investment.

Operating Results by Business Segment in the Third Quarter of Fiscal 2018

Business segments of the Nippon Steel & Sumitomo Metal Corporation Group (the NSSMC Group) strived to respond to the changing business environment and to improve sales and earnings. An overview of operating results by business segment is shown below.

 

     (Billions of yen)  
     Net Sales      Ordinary Profit  
     3Q FY2018      3Q FY2017      3Q FY2018      3Q FY2017  

Steelmaking and Steel Fabrication

     3,987.0        3,699.8        212.5        189.7  

Engineering and Construction

     253.7        205.2        5.2        4.8  

Chemicals and Materials*

     191.0        179.4        20.6        14.5  

System Solutions

     187.2        168.2        18.0        14.7  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     4,619.2        4,252.8        256.4        223.9  
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjustment

     (100.1 )       (88.3 )       (3.1 )       1.5  
  

 

 

    

 

 

    

 

 

    

 

 

 

Consolidated total

     4,519.1        4,164.5        253.2        225.4  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  *

Nippon Steel & Sumikin Chemical Co., Ltd. and Nippon Steel & Sumikin Materials Co., Ltd. were integrated into Nippon Steel Chemical & Material Co., Ltd. in October 2018. Therefore the Chemicals segment and the New Materials segment were unified into the Chemicals and Materials segment.

Steelmaking and Steel Fabrication

In the Steelmaking and Steel Fabrication segment, domestic steel demand remained solid, especially for shipments to the automotive sector, and overseas steel demand as a whole was on a rising trend. In the domestic steel markets, prices were at a generally high level against a background of stable demand, while prices declined in the overseas markets in the third quarter of fiscal 2018, due to uncertainty over China’s economic outlook. Amid such operating conditions, although natural disasters, including heavy rainfall and typhoons, as well as a difference in inventory valuation by NSSMC and its Group companies somewhat affected performance, NSSMC continued to work on initiatives to secure appropriate sales prices to maintain continuity in supply. These efforts included adjusting steel product prices to reflect rises in prices of auxiliary materials, such as scrap and alloys, other material procurement costs, and distribution costs. The segment also made steady progress in cost improvement measures. As a result, compared to the same third quarter of fiscal 2017, the Steelmaking and Steel Fabrication segment recorded an increase in net sales to ¥3,987.0 billion, and an increase in ordinary profit to ¥212.5 billion.

 

2

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Nippon Steel & Sumitomo Metal Corporation (5401)

The Third Quarter of Fiscal 2018

 

Engineering and Construction

Nippon Steel & Sumikin Engineering Co., Ltd. experienced gradually improving business conditions due to the resumption of capital investments by some overseas steel manufacturers and other factors. In addition, the business environment in Japan surrounding the construction and environment-related sectors remained favorable, and steady progress toward project completions was made due to strict control of project execution. As a result, compared to the same third quarter of fiscal 2017, the Engineering and Construction segment recorded an increase in net sales to ¥253.7 billion, and an increase in ordinary profit to ¥5.2 billion.

Chemicals and Materials

Nippon Steel Chemical & Material Co., Ltd. (which was established in October 2018 following the merger of Nippon Steel & Sumikin Chemical Co., Ltd. and Nippon Steel & Sumikin Materials Co., Ltd.) experienced a high level of market prices for mainstay needle coke in the coal tar chemicals business against a background of tight supply and demand conditions. In the functional materials business, overall sales remained firm based on favorable sales of resists for LCDs and metal foils for suspension materials despite signs of weakness seen in sales of circuit board materials for smartphones and other devices. The composite materials business continued to generate robust sales of both epoxy resins for electronic materials and carbon fiber composite materials for the civil engineering and construction sectors. In the chemicals business, prices for styrene monomer declined against the backdrop of lower crude oil prices and a weakening supply and demand balance. As a result, compared to the same third quarter of fiscal 2017, the Chemicals and Materials segment posted an increase in net sales to ¥191.0 billion, and an increase in ordinary profit to ¥20.6 billion.

System Solutions

NS Solutions Corporation provides advanced solution services and other comprehensive solutions in the planning, configuration, operation, and maintenance of IT systems for clients in a wide range of business fields. During the period under review, against the backdrop of robust system investments stemming mainly from customers’ advanced operational needs, the company’s business environment continued to be favorable. In addition, NS Solutions proceeded proactively in developing safe, protective solutions at factories and other work sites that make use of IoT technology, and developed platforms to analyze data based on AI technology. As a result, compared to the same third quarter of fiscal 2017, the System Solutions segment recorded an increase in net sales to ¥187.2 billion, and an increase in ordinary profit to ¥18.0 billion.

Sales and Profit for the Third Quarter of Fiscal 2018

Compared to the same period of fiscal 2017, NSSMC posted growth in both sales and profit: net sales increased to ¥4,519.1 billion; operating profit to ¥150.7 billion; ordinary profit to ¥253.2 billion; and profit attributable to owners of parent to ¥231.6 billion. Please note that the NSSMC Group will voluntarily apply International Financial Reporting Standards (IFRS) beginning with the fiscal year ending March 31, 2019. Based on IFRS, NSSMC’s consolidated revenue is estimated to amount to ¥4,570.0 billion, business profit to ¥260.0 billion, and profit attributable to owners of parent to ¥200.0 billion for the third-quarter of this fiscal year.

 

3

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Nippon Steel & Sumitomo Metal Corporation (5401)

The Third Quarter of Fiscal 2018

 

(2) Explanation of Information on Future Estimates, Including Consolidated Earnings Forecasts

Consolidated Earnings Forecasts

NSSMC anticipates that the overall global economy will continue to grow moderately despite concerns about a slowdown in China’s economy, as the United States is likely to sustain stable economic conditions and the government in China has been focusing on implementing various measures to support its economy.

The Japanese economy is also expected to maintain its recovery, supported by further improvements in the employment and income environments.

In Japan, demand for steel and steel market prices are forecast to remain firm. While overseas steel demand and market conditions are becoming more uncertain mainly due to intensifying US-China trade friction and the slowdown in the Chinese economy, which partly stems from the former, market prices have recently appeared to stop declining and some impacts can be anticipated from the Chinese government’s economic stimulus measures. Developments will require close monitoring.

Amid such operating conditions, the consolidated business performance for the full year of fiscal 2018 will be substantially affected by a decline in production and shipment caused by operation and equipment troubles, including deterioration in the No. 5 blast furnace operation at the Wakayama Works, as well as by the decline in overseas steel prices in the third quarter of fiscal 2018. The Company is now expecting business profit of ¥330.0 billion (based on IFRS), which is ¥20.0 billion less than the amount forecasted at the second-quarter earnings announcement (November 2, 2018). NSSMC plans to switch from Wakayama’s No. 5 blast furnace to No. 2 blast furnace and will strive to ensure the smooth start-up, scheduled to start in the middle of February. NSSMC will continue to maximize group-wide management initiatives through initiatives including (a) implementing measures to stabilize equipment use and operations; (b) securing appropriate sales prices to maintain continuity in supply, which includes adjusting steel product prices to take account of surges in prices of auxiliary materials, such as scrap and alloys, other material procurement costs, and distribution costs; and (c) making steady progress in cost improvement measures.

Basic Profit Distribution Policy and the Year-End Dividend Distribution

NSSMC’s basic profit distribution policy is to pay dividends from distributable funds at the end of the first half (interim) and second half (year-end) of the fiscal year, in consideration of the consolidated operating results and such factors as capital requirements for investment and other activities aimed at raising corporate value and performance prospects while also considering the financial structure of the Company on both consolidated and non-consolidated bases. The Company has adopted a consolidated annual payout ratio target of around 30% as the benchmark for the “payment of dividends from distributable funds in consideration of the consolidated operating results.” The level of the first-half dividend is determined based on consideration of interim performance figures and forecasts for the full fiscal year performance.

 

4

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Nippon Steel & Sumitomo Metal Corporation (5401)

The Third Quarter of Fiscal 2018

 

Regarding the dividend from retained earnings for the end of the fiscal year, the Company had not determined a dividend distribution plan at the second quarter earnings announcement (November 2, 2018). However, in accordance with the policy described above and after giving due consideration to full-year forecasts, the Company now plans to pay a dividend of ¥40 per share (bringing the dividend for the full year to ¥80 per share and representing a consolidated payout ratio of approximately 31% (based on IFRS)).

 

5

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Nippon Steel & Sumitomo Metal Corporation (5401)

The Third Quarter of Fiscal 2018

 

2. Quarterly Consolidated Financial Statements and Main Notes

(1) Quarterly Consolidated Balance Sheets

 

     Millions of yen  

ASSETS

   March 31, 2018     December 31, 2018  

Current assets :

    

Cash and bank deposits

     108,782       133,303  

Notes and accounts receivable

     678,579       684,135  

Inventories

     1,380,003       1,513,322  

Other

     233,902       279,873  

Less: Allowance for doubtful accounts

     (1,766 )      (1,546 ) 

Total current assets

     2,399,500       2,609,088  
  

 

 

   

 

 

 

Fixed assets :

    

Tangible fixed assets :

    

Buildings and structures

     759,716       772,163  

Machinery, equipment and vehicles

     1,131,993       1,194,570  

Other

     983,250       998,142  
  

 

 

   

 

 

 
     2,874,959       2,964,876  

Intangible assets :

     84,972       111,636  

Investments and others :

    

Investments in securities

     871,399       668,443  

Shares of subsidiaries and affiliates

     1,069,688       1,047,722  

Net defined benefit assets

     116,573       106,319  

Other

     112,982       206,765  

Less: Allowance for doubtful accounts

     (3,726 )      (4,659 ) 
  

 

 

   

 

 

 
     2,166,917       2,024,591  

Total fixed assets

     5,126,850       5,101,104  
  

 

 

   

 

 

 

Total assets

     7,526,351       7,710,193  
  

 

 

   

 

 

 

 

6

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Nippon Steel & Sumitomo Metal Corporation (5401)

The Third Quarter of Fiscal 2018

 

 

     Millions of yen  

LIABILITIES

   March 31, 2018     December 31, 2018  

Current liabilities :

    

Notes and accounts payable

     775,126       805,271  

Short-term loans payable

     300,632       312,462  

Commercial paper

     76,000       211,000  

Bonds due within one year

     85,700       50,700  

Income taxes payable

     43,916       47,369  

Provision for loss on construction contracts

     1,508       3,561  

Other

     803,197       703,444  

Total current liabilities

     2,086,080       2,133,809  
  

 

 

   

 

 

 

Long-term liabilities :

    

Bonds and notes

     209,996       229,999  

Long-term loans payable

     1,380,660       1,557,483  

Allowance and reserve

     4,991       4,788  

Net defined benefit liabilities

     166,152       182,075  

Other

     162,967       142,044  

Total long-term liabilities

     1,924,768       2,116,391  
  

 

 

   

 

 

 

Total liabilities

     4,010,849       4,250,201  
  

 

 

   

 

 

 

NET ASSETS

    

Shareholders’ equity :

    

Common stock

     419,524       419,524  

Capital surplus

     386,865       384,414  

Retained earnings

     2,076,769       2,237,734  

Less: Treasury stock, at cost

     (132,162 )      (132,202 ) 
  

 

 

   

 

 

 
     2,750,997       2,909,471  

Accumulated other comprehensive income:

    

Unrealized gains on available-for-sale securities

     313,116       180,884  

Deferred hedge income (loss)

     (2,107 )      (2,020 ) 

Unrealized gains on revaluation of land

     3,001       2,966  

Foreign currency translation adjustments

     (4,898 )      (54,064 ) 

Remeasurements of defined benefit plans

     85,341       66,814  
  

 

 

   

 

 

 
     394,453       194,580  

Non-controlling interests in consolidated subsidiaries

     370,050       355,940  
  

 

 

   

 

 

 

Total net assets

     3,515,501       3,459,992  
  

 

 

   

 

 

 

Total liabilities and net assets

     7,526,351       7,710,193  
  

 

 

   

 

 

 

 

7

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Nippon Steel & Sumitomo Metal Corporation (5401)

The Third Quarter of Fiscal 2018

 

(2) Quarterly Consolidated Statements of Operations and

  Quarterly Consolidated Statements of Comprehensive Income

 

Quarterly Consolidated Statements of Operations

   Millions of yen  
     Third quarter of
Fiscal 2017 		     Third quarter of
Fiscal 2018 		 

Operating revenues :

     

Net sales

     4,164,556        4,519,103  

Cost of sales

     3,641,588        3,962,839  
  

 

 

    

 

 

 

Gross profit

     522,968        556,264  
  

 

 

    

 

 

 

Selling, general and administrative expenses

     384,936        405,547  
  

 

 

    

 

 

 

Operating profit

     138,031        150,717  
  

 

 

    

 

 

 

Non-operating profit and loss :

     

Non-operating profit :

     

Interest income

     3,891        4,135  

Dividend income

     15,574        17,667  

Equity in profit of unconsolidated subsidiaries and affiliates

     93,896        105,725  

Other

     29,442        30,368  
  

 

 

    

 

 

 
     142,804        157,897  
  

 

 

    

 

 

 

Non-operating loss :

     

Interest expense

     15,486        13,570  

Other

     39,865        41,759  
  

 

 

    

 

 

 
     55,352        55,329  
  

 

 

    

 

 

 

Ordinary profit

     225,484        253,284  
  

 

 

    

 

 

 

Extraordinary profit :

     

Gain on sales of investment in securities

     24,572        30,339  
  

 

 

    

 

 

 
     24,572        30,339  
  

 

 

    

 

 

 

Extraordinary loss :

     

Loss on inactive facilities

     5,969        —    

Loss on disaster

     —          22,349  

Restructuring loss

     6,200        —    
  

 

 

    

 

 

 
     12,169        22,349  
  

 

 

    

 

 

 

Profit before income taxes

     237,887        261,274  
  

 

 

    

 

 

 

Income taxes - current and deferred

     62,501        30,037  
  

 

 

    

 

 

 

Profit

     175,385        231,237  
  

 

 

    

 

 

 

Profit(loss) attributable to non-controlling interests

     19,329        (402 ) 
  

 

 

    

 

 

 

Profit attributable to owners of parent

     156,056        231,639  
  

 

 

    

 

 

 

 

Quarterly Consolidated Statements of Comprehensive Income

   Millions of yen  
     Third quarter of
Fiscal 2017 		    Third quarter of
Fiscal 2018 		 

Profit

     175,385       231,237  

Other comprehensive income

    

Unrealized gains on available-for-sale securities

     96,021       (131,657 ) 

Deferred hedge income

     (1,111 )      (274 ) 

Foreign currency translation adjustments

     9,290       (25,544 ) 

Remeasurements of defined benefit plans

     24,869       (18,512 ) 

Share of other comprehensive income of affiliates accounted for using equity method

     5,805       (28,837 ) 
  

 

 

   

 

 

 

Total other comprehensive income

     134,876       (204,826 ) 
  

 

 

   

 

 

 

Comprehensive income

     310,262       26,410  
  

 

 

   

 

 

 

(breakdown)

    

Comprehensive income attributable to owners of parent

     284,116       31,802  

Comprehensive income attributable to non-controlling interests

     26,146       (5,391 ) 
  

 

 

   

 

 

 

 

8

Table of Contents

Nippon Steel & Sumitomo Metal Corporation (5401)

The Third Quarter of Fiscal 2018

 

(3) Notes on Quarterly Consolidated Financial Statements

(Notes on Going Concern Assumption)

None

(Notes in Case of Significant Changes to Shareholders’ Equity)

None

(Adoption of Special Accounting Methods for the Preparation of Quarterly Consolidated Financial Statements)

The Company reasonably estimated the effective tax rate following application of tax-effect accounting on profit before income taxes for the consolidated fiscal year, which includes the quarterly period under review, and applied this percentage to quarterly profit before income taxes to determine income taxes.

(Changes in Accounting Principles, Changes in Accounting Estimates, and Retrospective Restatements)

At the beginning of the first quarter of fiscal 2018, the Company adopted the “Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No.28, February 16, 2018) and “Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No.26, February 16, 2018)

The application of this practical solution had no effect on the quarterly consolidated financial statements for the first half of fiscal 2018.

 

9

Table of Contents

Nippon Steel & Sumitomo Metal Corporation (5401)

February 6, 2019

 

 

Nippon Steel & Sumitomo Metal Corporation

Code Number: 5401

Listings: Tokyo, Nagoya, Sapporo and Fukuoka Stock Exchanges

Contact: Fumiaki Ohnishi, General Manager, Public Relations Center-Tel: +81-3-6867-2130

Supplementary Information on the Financial Results

for the Third Quarter of Fiscal 2018

Japanese Steel Industry

1. Crude Steel Production

 

     (million tons)  
     1st quarter      2nd quarter      1st half      3rd quarter      4th quarter      2nd half      total  

2017FY

     26.09        25.94        52.04        26.39        26.41        52.80        104.84  

2018FY

     26.56        25.65        52.22        25.70        ( * ) Approx.26.31        Approx.52.01        Approx.104.23  

 

( * )  

METI forecast

2. Inventory Volume

 

At the end of:

     Inventory at
manufacturers
and distributors 		     Inventory
/shipment ratio 		    Rolled sheets* 1      H-flange beams* 2  
            (million tons)      (%)     (million tons)      (million tons)  

Jan.

     2017        5.60        (148.6 )      3.89        0.186  

Feb.

     2017        5.64        (151.9 )      3.88        0.200  

Mar.

     2017        5.37        (124.8 )      3.80        0.201  

Apr.

     2017        5.54        (151.7 )      3.88        0.197  

May

     2017        5.78        (155.9 )      4.09        0.197  

June

     2017        5.56        (139.9 )      4.01        0.193  

July

     2017        5.42        (142.0 )      3.95        0.189  

Aug.

     2017        5.66        (158.4 )      4.14        0.179  

Sep.

     2017        5.70        (145.4 )      4.16        0.182  

Oct.

     2017        5.83        (150.1 )      4.11        0.176  

Nov.

     2017        5.66        (139.2 )      4.00        0.173  

Dec.

     2017        5.67        (149.2 )      4.04        0.175  

Jan.

     2018        5.86        (157.5 )      4.15        0.185  

Feb.

     2018        5.81        (154.4 )      4.12        0.196  

Mar.

     2018        5.83        (140.8 )      4.21        0.200  

Apr.

     2018        5.79        (145.8 )      4.15        0.196  

May

     2018        5.87        (150.1 )      4.34        0.200  

June

     2018        5.92        (149.3 )      4.41        0.207  

July

     2018        5.68        (143.1 )      4.20        0.208  

Aug.

     2018        6.01        (170.5 )      4.39        0.204  

Sep.

     2018        6.23        (176.6 )      4.40        0.198  

Oct.

     2018        5.87        (132.0 )      4.26        0.184  

Nov.

     2018        5.59        (133.8 )      4.14        0.184  

Dec.* 3

     2018        5.71        (149.2 )      4.17        0.187  

 

*1

Hot-rolled, cold-rolled and coated sheets

*2

Inventories of distributors dealing with H-flange beams manufactured by Nippon Steel & Sumitomo Metal Corporation

*3

Preliminary report

 

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Table of Contents

Nippon Steel & Sumitomo Metal Corporation

NSSMC

3. Pig Iron Production

 

                                                                                                               
     (million tons)  
     1st quarter      2nd quarter      1st half      3rd quarter      4th quarter      2nd half      total  

2017FY

     9.92        10.13        20.05        10.08        10.49        20.57        40.61  

2018FY

     10.25        10.24        20.49        10.24        Approx.10.50        Approx.20.70        Approx.41.20  

Including Hokkai Iron & Coke Co., Ltd. and Nippon Steel & Sumikin Koutetsu Wakayama Corporation* 1

4. Crude Steel Production

(Consolidated basis (The Company and its consolidated subsidiaries))

 

                                                                                                               
     (million tons)  
     1st quarter      2nd quarter      1st half      3rd quarter      4th quarter      2nd half      total  

2017FY

     11.49        11.74        23.23        11.72        12.07        23.79        47.02  

2018FY

     11.89        11.76        23.65        12.13        Approx.12.40        Approx.24.50        Approx.48.20  

(Non-consolidated basis)

 

                                                                                                               
     (million tons)  
     1st quarter      2nd quarter      1st half      3rd quarter      4th quarter      2nd half      total  

2017FY

     9.90        10.19        20.09        10.08        10.50        20.58        40.67  

2018FY

     10.29        10.21        20.50        10.29        Approx.10.50        Approx.20.80        Approx.41.30  

Including Nippon Steel & Sumikin Koutetsu Wakayama Corporation* 1

5. Steel Products Shipment

 

                                                                                                               
     (million tons)  
     1st quarter      2nd quarter      1st half      3rd quarter      4th quarter      2nd half      total  

2017FY

     9.34        9.39        18.72        9.39        9.67        19.07        37.79  

2018FY

       9.57          8.99        18.56          9.92          Approx.9.70        Approx.19.60        Approx.38.10  

Including Nippon Steel & Sumikin Koutetsu Wakayama Corporation* 1

6. Average Price of Steel Products

 

                                                                                                               
     (thousands of yen / ton)  
     1st quarter      2nd quarter      1st half      3rd quarter      4th quarter      2nd half      total  

2017FY

       84.0          83.0          83.5        86.0        85.7        85.8        84.7  

2018FY

     87.2        90.2        88.7        91.5             Approx.90             Approx.90             Approx.89  

Weighted average of the Company and Nippon Steel & Sumikin Koutetsu Wakayama Corporation* 1

 

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Table of Contents

Nippon Steel & Sumitomo Metal Corporation

 

7. Export Ratio of Steel Products (Value basis)

 

                                                                                                               
     (%)  
     1st quarter      2nd quarter      1st half      3rd quarter      4th quarter      2nd half      total  

2017FY

        42           41           42           41        41        41        41  

2018FY

     41        41        41        40             Approx.37             Approx.39             Approx.40  

Weighted average of the Company and Nippon Steel & Sumikin Koutetsu Wakayama Corporation* 1

8. Foreign Exchange Rate

 

                                                                                                               
     (¥/$)  
     1st quarter      2nd quarter      1st half      3rd quarter      4th quarter      2nd half      total  

2017FY

      111         111         111         113        110        111        111  

2018FY

     108        111        109        113           Approx.110           Approx.112           Approx.111  

9. Amount of Capital Expenditure and Depreciation

(Consolidated basis)

 

     (billions of yen)                           
     Capital Expenditure      Depreciation                                                                                                            

2017FY

     411.9        340.7  

2018FY* 2

     Approx.440.0        Approx.420.0  

 

*1

Nippon Steel & Sumikin Koutetsu Wakayama Corporation was merged into NSSMC on April 1, 2018.

*2

included for impacts of transition to IFRS and other impacts

 

- 3 -

Table of Contents

For Immediate Release

February 6, 2019

 

Company name:

   Nippon Steel & Sumitomo Metal Corporation

Representative:

   Kosei Shindo, Representative Director and President

Code number:

   5401

Contact:

   Fumiaki Ohnishi, General Manager, Public Relations Center

Telephone:

   +81-3-6867-2130

Announcement of Revision in Forecasts for Dividend

The Board of Directors of Nippon Steel & Sumitomo Metal Corporation (“the Company”) held on February 6, 2019 has decided to revise the forecasts for year-end dividend from retained earnings as follows.

1. Reason for the Revision

When the first half results were announced on November 2, the Company had not determined a year-end dividend distribution amount for the current fiscal year ending March 31 2019. In accordance with the basic profit distribution policy described previously announced, after due consideration of the earnings forecasts for the year and other factors, the Company intends to distribute a dividend of ¥40 per share at the end of the second half (year-end). This would bring the full-year dividend distribution amount to ¥80 per share, representing a consolidated dividend payout ratio of approximately 31% (based on IFRS).

2. Details for the Revision

 

     (yen)  
     Dividends per share  
     End of the first half      End of the second half      Full fiscal year  
Previous forecasts
(Data released on November 2, 2018) 		        Undecided        Undecided  

Revised forecasts

        40        80  
Actual for the current fiscal year ending March 31, 2019      40        
Actual for the previous fiscal year ended March 31, 2018      30        40        70  

Table of Contents

February 6, 2019

To Whom It May Concern,

 

Listed Company’s Name:

   Nippon Steel & Sumitomo Metal Corporation

Representative:

   Kosei Shindo, Representative Director and President

(Code Number:

   5401, First Section of the TSE, First Section of the
NSE, FSE, and SSE)

Contact:

  

Fumiaki Onishi, General Manager,

Public Relations Center

(Telephone:

   +81-3-6867-2135, 2146, 2977, 3419)

Company’s Name:

   Nisshin Steel Co., Ltd.

Representative:

   Kinya Yanagawa, President & CEO,
and Representative Director

Contact:

   Hirokazu Kuwasako, Executive Officer,
General Manager, General Administration Dept.

(Telephone:

   +81-3-3216-5566)

Company’s Name:

   Nippon Steel & Sumikin Stainless Steel Corporation

Representative:

   Hitoshi Ito, Representative Director and President

Contact:

  

Manabu Tani, Executive Officer, General Manager,

Corporate Planning Div.

(Telephone:

   +81-3-6841-4853)

Notice Regarding the Execution of a Basic Integration Agreement for the Integration of the Stainless Steel Sheet Businesses of Nippon Steel & Sumitomo Metal Corporation, Nisshin Steel Co., Ltd. and Nippon Steel & Sumikin Stainless Steel Corporation, and the Execution of a Company Split (Simplified Absorption-Type Split) Agreement Between Nippon Steel & Sumitomo Metal Corporation and Nippon Steel & Sumikin Stainless Steel Corporation

Nippon Steel & Sumitomo Metal Corporation (“ NSSMC ”) and its group companies, Nisshin Steel Co., Ltd. (“ Nisshin Steel ”) and Nippon Steel & Sumikin Stainless Steel Corporation (“ NSSC ”), pursuant to the Basic Agreement regarding the Integration of the Stainless Steel Sheet Business executed as of May 16, 2018, resolved at their respective board of directors’ meetings held today to integrate the stainless steel sheet business of the NSSMC Group (the “ Integration ”) in order to maximize synergies in the NSSMC Group’s stainless steel business at an early stage, by having NSSC succeed a part of the special stainless steel strip business of NSSMC and the stainless steel sheet business of Nisshin Steel, effective April 1, 2019, and entered into the Basic Integration Agreement regarding the Integration as of today.

Additionally, NSSMC and NSSC, at their respective board of directors’ meetings, resolved to have NSSC succeed a part of NSSMC’s special stainless steel strip business (excluding pure nickel, nickel alloy and clad steel business) (the “ Subject of Business Succession ”) by way of an absorption-type company split (the “ Company Split ”), effective April 1, 2019, wherein NSSMC will be the split company and NSSC will be the successor company, and entered into the Company Split Agreement (the “ Company Split Agreement ”) as of today.

 

1

Table of Contents

As the Company Split is a company split wherein NSSC, a wholly owned subsidiary of NSSMC is the successor company, some disclosure details have been omitted.

The details of the foregoing resolutions are announced as follows.

 

I.

Regarding the Integration

 

1.

Purpose of the Integration

NSSMC, Nisshin Steel and NSSC, since Nisshin Steel became a subsidiary of NSSMC in March 2017, have proceeded to develop their alliance and complement each other’s respective stainless steel businesses in the areas of production, sale and procurement. However, in order to respond to harsh business circumstances such as the substantial over-supply in Asian markets and future changes in social and industrial structure, and to further develop and grow, NSSMC, Nisshin Steel and NSSC reached the conclusion that it is imperative that they work toward the maximization of synergies by uniting forces in the stainless steel sheet business of the NSSMC Group, sharing and expanding the respective strengths of the three companies, and addressing their weaknesses.

NSSMC, Nisshin Steel and NSSC have, at this time, agreed to integrate the stainless steel sheet business of each company, effective April 1, 2019, aiming for future growth and development by creating further synergies as follows: by bringing together management resources for the stainless steel sheet business cultivated so far by each company, integrating respective business strategies, creating value for customers not only through more efficient organizational and operational systems but also by providing optimal products and processing technology/services, facilitating world-leading technical developments, thoroughly pursuing best practices, and building a framework of optimal production systems.

 

2.

Details of the Integration

The three companies, namely NSSMC, Nisshin Steel and NSSC, have agreed to have NSSC succeed a part of the special stainless steel strip business (excluding pure nickel, nickel alloy and clad steel business) contained within NSSMC’s special stainless steel business (steel sheets and shaped steel), by way of an absorption-type company split wherein NSSMC will be the split company and NSSC will be the successor company; and have NSSC succeed the stainless steel sheet business (including the strip and steel plate businesses) contained within Nisshin Steel’s stainless steel business (steel sheets, steel pipes and tubes), by way of an absorption-type company split wherein Nisshin Steel will be the split company and NSSC will be the successor company, effective April 1, 2019.

 

2

Table of Contents
II.

Regarding the Company Split

 

1.

Outline of the Company Split

 

(1)

Schedule of the Company Split

 

Board of directors’ meeting to approve execution of the Company Split Agreement

(NSSMC and NSSC)

 

February 6, 2019

Execution of the Company Split Agreement

(NSSMC and NSSC)

 

February 6, 2019

Date of the Company Split (the effective date)

 

April 1, 2019 (planned)

 

  (Note)

With regard to NSSMC, the Company Split will be conducted through simplified absorption-type split procedures which do not require the approval at a shareholders’ meeting pursuant to Article 784, Paragraph 2 of the Companies Act, and with regard to NSSC, the Company Split will be conducted through short-form absorption-type split procedures which do not require the approval at a shareholders’ meeting pursuant to Article 796, Paragraph 1 of the Companies Act.

 

(2)

Method of the Company Split

An absorption-type split wherein NSSMC will be the split company and NSSC will be the successor company.

 

(3)

Allotment Details Regarding the Company Split

As NSSC is a wholly-owned subsidiary of NSSMC, there will be no allocation of the shares or other assets to NSSMC in conjunction with the Company Split.

 

(4)

Treatment of Stock Acquisition Rights and Bonds with Stock Acquisition Rights upon the Company Split

Not applicable.

 

(5)

Stated Capital to Be Increased or Decreased as a Result of the Company Split

There will be no change in NSSMC’s stated capital as a result of the Company Split.

 

(6)

Rights and Obligations Succeeded by the Successor Company

NSSC will succeed from NSSMC the contractual positions and intellectual property rights relating to the Subject of Business Succession and the rights and obligations attached thereto (however, excluding the receivables and payables incurred for causes occurring prior to the effective date).

 

(7)

Performance Prospects of the Liabilities

NSSMC believes that all liabilities incurred by NSSMC and NSSC can be performed even on and after the effective date of the Company Split.

 

3

Table of Contents
2.

Outline of the Companies Involved in the Company Split

 

         

Split Company in

an Absorption-Type Split

    

Successor Company in

an Absorption-Type Split

 
(1)    Name    Nippon Steel & Sumitomo Metal Corporation

 

   Nippon Steel & Sumikin Stainless Steel Corporation

 

(2)    Location    2-6-1 Marunouchi, Chiyoda-ku, Tokyo

 

   1-8-2 Marunouchi, Chiyoda-ku, Tokyo

 

(3)    Name and Title of Representative    Kosei Shindo, Representative Director and President

 

   Hitoshi Ito, Representative Director and President

 

(4)    Description of Business Activities    Steelmaking and steel fabrication, Engineering, Chemical and Material, and System solutions

 

   Production and sale of stainless steel products

 

(5)    Capital    419,524 million yen

 

   5,000 million yen

 

(6)    Date of Establishment    April 1, 1950

 

   October 1, 2003

 

(7)    Number of Outstanding Shares    950,321,402 shares

 

   100,000 shares

 

(8)    Fiscal Year End    March 31

 

   March 31

 

(9)   

Major Shareholders and Shareholding Ratio

(as of September 30, 2018)

   The Master Trust Bank of Japan, Ltd. (Trust Account)      4.7%      Nippon Steel & Sumitomo Metal Corporation      100%  
   Japan Trustee Services Bank, Ltd.
(Trust Account) 		     4.6%        
   Nippon Life Insurance Company      2.8%        
   Sumitomo Corporation      2.1%        
   Japan Trustee Services Bank, Ltd.
(Trust Account 5) 		     2.0%        
   Mizuho Bank, Ltd.      1.8%        
   Sumitomo Mitsui Banking Corporation      1.7%        
   Japan Trustee Services Bank, Ltd.
(Trust Account 9) 		     1.6%        
   Meiji Yasuda Life Insurance Company      1.6%        
   MUFG Bank, Ltd.      1.5%        
(10)    Financial Condition and Operating Results of the Immediately Preceding Fiscal Year

 

  

FY ended March 2018

(consolidated)

 

 

  

FY ended March 2018

(consolidated)

 

 

Net Assets

     3,515,501      102,422

 

Total Assets

     7,592,413      168,127

 

Net Assets per Share (yen)

     3,563.80      1,024,220

 

Sales

     5,668,663      258,804

 

Operating Profit

     182,382      22,927

 

Ordinary Profit

     297,541      22,212

 

Net Income Attributable to Owners of Parent for the Period      195,061      16,075

 

Net Income per Share for the Period (yen)      221.00      160,750

 

(In millions of yen unless otherwise specified)

 

4

Table of Contents
3.

Outline of the Business Division to be Split

 

(1)

Business Description of the Division to be Split

Sales of special stainless steel strip products (excluding pure nickel, nickel alloy and clad steel)

 

(2)

Operating Results of the Division to be Split (fiscal year ended March 2018)

 

     NSSMC (Special SUS)     

Consolidated Net Sales

(Billions of yen)

   4.4

 

(3)

Items of Asset and Liabilities to be Split and the Amount Thereof

Contractual positions (commercial rights, intellectual property rights, etc.) relating to the special stainless steel strip business (excluding pure nickel, nickel alloy and clad steel business)

 

4.

Status of the Companies After the Company Split

 

         

Split Company in

an Absorption-Type Split

  

Successor Company in

an Absorption-Type Split

(1)    Name   

NIPPON STEEL CORPORATION

(*Scheduled to change the company name on April 1, 2019, as stated above)

  

NIPPON STEEL Stainless Steel Corporation

(*Scheduled to change the company name on April 1, 2019, as stated above)

(2)    Location    6-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo    8-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo
(3)    Name and Title of Representative   

Eiji Hashimoto, Representative Director and President

(*Scheduled to assume office on April 1, 2019)

   Hitoshi Ito, Representative Director and President
(4)    Description of Business Activities    Steelmaking and steel fabrication, Engineering, Chemical and Material, and System solutions    Production and sale of stainless steel products
(5)    Capital    419,524 million yen                 5,000 million yen              
(6)    Fiscal Year End    March 31       March 31   

 

5.

Future Prospects

Given that the Company Split is a company split between NSSMC and NSSC, a wholly owned subsidiary of NSSMC, the effects of the Company Split on the results of NSSMC are expected to be negligible.

End

 

5

Table of Contents
(Reference) 

Consolidated financial forecast for the current fiscal year (announced on February 6, 2019) and consolidated operating results for the previous fiscal year (IFRS)

 

    

Revenue

  

Business Profit

  

Profit Attributable to

Owners of Parent

Financial Forecast for the Current Fiscal Year (FY ending March 2019)    6,200,000 million yen    330,000 million yen    230,000 million yen
Operating Results for the Previous Fiscal Year (FY ended March 2018)    5,712,965 million yen    288,700 million yen    180,832 million yen

 

6

Table of Contents

February 6, 2019

Nippon Steel & Sumitomo Metal Corporation

Nisshin Steel Co., Ltd.

Nippon Steel & Sumikin Stainless Steel Corporation

Conclusion of integrated basic agreement on integration of stainless steel sheet businesses

To achieve the timely and utmost synergy of the stainless steel business of the NSSMC Group, Nippon Steel & Sumitomo Metal Corporation (hereinafter referred to as “NSSMC”), Nisshin Steel Co., Ltd. (hereinafter referred to as “Nisshin Steel”) and Nippon Steel & Sumikin Stainless Steel Corporation (hereinafter referred to as “NSSC”) concluded a basic agreement on May 16, 2018 to enable NSSC to succeed a part of the steel sheet business among NSSC special stainless steel business (steel sheets, shaped steel) and the steel sheet business among Nisshin Steel stainless steel business (steel sheets, steel pipes and tubes) (hereinafter referred to as “this integration”), and have been proceeding with the investigation to date based on the said basic agreement.

Then on January 1, 2019, since Nisshin Steel became a wholly-owned subsidiary of NSSMC (hereinafter “wholly-owned subsidiary of NSSMC”), we today concluded an integrated basic agreement between the three companies concerning this integration on April 1, 2019, and thus hereby report the details below.

1.       Purpose of this integration

Since Nisshin Steel became a wholly-owned subsidiary of NSSMC in March 2017, NSSMC, Nisshin Steel and NSSC have been promoting cooperation and mutual understanding in each field of manufacturing, sales, procurement, etc. of the stainless steel business. However, in order to deal with the harsh business environment such as significant oversupply in Asian markets and future changes in social and industrial structures, and achieve development and growth, we have concluded that there is an urgent need to handle the maximization of synergy through assembling the collective efforts of the stainless steel business of the NSSMC Group, sharing and expanding the strengths of the three companies, and reinforcing the weaknesses.

NSSMC, Nisshin Steel and NSSC have now decided to integrate each stainless steel business on April 1, 2019 by gathering the management resources for the stainless steel business fostered by each company, integrating the corporate strategy, and through not only the promotion of efficiency of the organizational and operating structure, but the creation of customer values by providing on-target products, application processing technology and services, the promotion of our world-leading technical development, the thorough pursuit of best practices and the building of an optimum production facility system, thereby constructing further synergy and promoting future growth and development.

Table of Contents
2.       Contents

of this integration

 

  (1)

Business integration method

Setting April 1, 2019 as the date of entry into force, the three companies, NSSMC, Nisshin Steel and NSSC, use the company split method to make NSSMC a split company and NSSC a succeeding company, and have NSSC succeed part of the special stainless steel sheet business (excluding pure nickel/nickel alloy and clad steel sheet business) of NSSMC special stainless steel businesses (steel sheets, shaped steel). They also use the company split method of making Nisshin Steel a split company and NSSC as a succeeding company, and have NSSC succeed the stainless steel sheet business (including steel sheet and steel plate business) of Nisshin Steel stainless steel businesses (steel sheets, steel pipes and tubes).

 

  (2)

Overview of integrated company

 

Trade name:

   NIPPON STEEL Stainless Steel Corporation

Location of head office:

   1-8-2, Marunouchi, Chiyoda-ku, Tokyo

Description of business:

   Manufacturing and sales of stainless steel (product type: steel sheet, steel plate, bar and wire rod, billet), etc.

Number of employees:

   About 3,200

Sales volume:

   About 1.5 million t/year

Sales amount:

   About 460 billion yen, consolidated

Manufacturing sites:

   Kashima, Kinuura, Hikari, Shunan, Yawata

Group companies:

   11 domestic and 9 overseas consolidated subsidiaries and companies accounted for using the equity method

 

3.       Schedules

for this integration

 

February 6, 2019

  Integrated basic agreement concluded

April 1, 2019 (planned)

  Execution date of this integration (date of entry into force)

 

*

Reference: Overview of companies involved in this integration (as of March 31, 2018)

 

(1)   Name  

Nippon Steel & Sumitomo

Metal Corporation

   Nisshin Steel Co., Ltd.   

Nippon Steel & Sumikin

Stainless Steel Corporation

(2)   Location  

2-6-1, Marunouchi,

Chiyoda-ku, Tokyo

  

3-4-1, Marunouchi,

Chiyoda-ku, Tokyo

  

1-8-2, Marunouchi,

Chiyoda-ku, Tokyo

(3)  

Title and name

of representative

 

Kosei Shindo, Representative

Director and President

  

Kinya Yanagawa, President &

Chief Executive Officer and

Representative Director

  

Hitoshi Ito, Representative

Director and President

(4)  

Description of

business

 

Steelmaking, engineering,

chemical and material, system

solutions

  

Steelmaking business

(manufacturing and sales of

steel products)

  

Manufacturing and sales of

stainless steel

(5)   Capital fund   419.524 billion yen    30 billion yen    5 billion yen
(6)  

Date of

foundation

  April 1, 1950    October 1, 2012    October 1, 2003
(7)  

Amount of sales

(2017 FY)

  5,668.663 billion yen    614.196 billion yen    258.804 billion yen

(8)

 

Number of

employees

  (consolidated) 93,557    (consolidated) 7,859    (consolidated) 2,302

(Contacts for inquiries)

         NSSMC Public Relations Center       Tel.03-6867-2135, 2146, 2977, 3419

         Nisshin Steel, General Administration Dept., Secretary/ Public Relations Team       Tel.03-3216-5566

         NSSC Planning Dept.                         Tel.03-6841-4853

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