Table of Contents
FORM 6-K
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant toRule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of May 2019
Commission FileNumber: 333-228135
NIPPON STEEL CORPORATION
(Translation of registrant’s name into English)
6-1, Marunouchi2-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 coverForm 20-F orForm 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting theForm 6-K in paper as permitted byRegulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting theForm 6-K in paper as permitted byRegulation S-T Rule 101(b)(7): ☐
Table of Contents
Information furnished on this form:
Table of Contents
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 CORPORATION | ||||||
Date: May 9, 2019 | By: | /s/ Kazumasa Shinkai | ||||
Kazumasa Shinkai | ||||||
Executive Officer, Head of General Administration Division |
Table of Contents
Nippon Steel Corporation
Notice of Changes in Audit & Supervisory Board Members
This is to announce that, at the meeting of the Board of Directors held today, the candidate for the Audit & Supervisory Board Member to be submitted to the 95th Annual Shareholders Meeting scheduled to be held in late June 2019 was decided as follows.
○ | Candidate for Audit & Supervisory Board Member to be Submitted to the 95th Annual Shareholders Meeting (scheduled to be held in late June 2019) |
<Name> | <Current position> | |
Hiroshi YOSHIKAWA | President of Rissho University Professor Emeritus, The University of Tokyo |
Notes: | Mr. Yoshikawa, a new candidate for the Audit & Supervisory Board, meets the requirements of an outside Audit & Supervisory Board Member as set forth in Article 2, Item 16 of the Companies Act. |
Katsunori Nagayasu, the Audit & Supervisory Board Member, will retire at the end of the 95th Annual Shareholders Meeting scheduled to be held in late June 2019.
Table of Contents
To Whom It May Concern
Company Name: | Nippon Steel Corporation | |
Representative: | Eiji Hashimoto | |
Representative Director and President | ||
(Code Number: | 5401, First Section of the TSE, First Section of the NSE, FSE, and SSE) | |
Contact: | Fumiaki Ohnishi | |
General Manager, Public Relations Center | ||
(Telephone: | +81-3-6867-2135, 2146, 2977, 3419) |
Notice RegardingNon-Renewal of the Fair Rules for the Acquisition of Substantial
Shareholdings (Takeover Defense Measures for the Protection and Enhancement of
Shareholders’ Common Interests)
Nippon Steel Corporation (the “Company”) has resolved, at the meeting of its Board of Directors held today, not to renew the Fair Rules for the Acquisition of Substantial Shareholdings (Takeover Defense Measures for the Protection and Enhancement of Shareholders’ Common Interests) (the “Plan”), whose effective term expires at the closing of the ordinary general meeting of shareholders to be held in June 2019 (the “General Meeting of Shareholders”).
The Company adopted the Plan in March 2006, in order to protect and enhance the common interests of its shareholders, and since that time has continued the Plan to date through several revisions and renewals.
In the meantime, the Company has been striving to enhance its corporate value through implementing the business integration of Nippon Steel Corporation and Sumitomo Metal Industries, Ltd., making Nisshin Steel Co., Ltd. a wholly owned subsidiary, making Ovako AB and Sanyo Special Steel Co., Ltd. a subsidiary, executing the joint acquisition of Essar Steel India Limited in cooperation with ArcelorMittal (planned) and other efforts. The Company intends to further enhance its corporate value by steadily implementing the 2020Mid-Term Management Plan launched in March 2018, further improving its capabilities in terms of technology, cost and being global, and continuously advancing towards becoming “the best steelmaker with world-leading capabilities.”
While implementing these measures, the Company has decided not to renew the Plan, whose effective term expires at the closing of the General Meeting of Shareholders, as a result of deliberation considering recent situations, as well as opinions raised by shareholders including domestic and overseas institutional investors, regarding takeover defense measures.
Even after the termination of the Plan, in the event a third party proposes the acquisition of substantial shareholdings in the Company or other related activities, the Company will make efforts to enable its shareholders to make an appropriate informed judgment based on sufficient information and with a reasonable time period to consider such proposal, and if the proposal is reasonably judged to damage the Company’s corporate value, which could result in harm to the common interests of the Company’s shareholders, the Company will aim to protect its corporate value and the common interests of its shareholders by taking prompt and appropriate measures to the extent permitted under the then applicable laws and regulations.
Table of Contents
Consolidated Basis
Results for Fiscal 2018
(April 1, 2018—March 31, 2019)
<under IFRS>
May 9, 2019
Company name: | Nippon Steel Corporation | |
Stock listing: | Tokyo, Nagoya, Sapporo, Fukuoka stock exchanges | |
Code number: | 5401 | |
URL: | https://www.nipponsteel.com/en/index.html | |
Representative: | Eiji Hashimoto, Representative Director and President | |
Contact: | Fumiaki Ohnishi, General Manager, Public Relations Center | |
Telephone: | +81-3-6867-2130 | |
Scheduled date to Ordinary General Meeting of Shareholders: | June 25, 2019 | |
Scheduled date to pay dividends: | June 26, 2019 | |
Scheduled date to submit Securities Report: | June 25, 2019 | |
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 Operating Results, Financial Position and Cash-Flows for Fiscal 2018
(April 1, 2018—March 31, 2019) |
(1) Consolidated Operating Results
(Percentage figures are changes from the same period of the previous fiscal year.) | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Business profit (*) | Operating profit | Profit before income taxes | Profit for the year | Profit for the year attributable to owners of the parent | |||||||||||||||||||||||||||||||||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||||||||||||||||||||||||||||||||||
Fiscal 2018 | 6,177,947 | 8.1 | 336,941 | 16.7 | 265,111 | (8.2 | ) | 248,769 | (8.5 | ) | 257,579 | 21.4 | 251,169 | 38.9 | ||||||||||||||||||||||||||||||||||
Fiscal 2017 | 5,712,965 | 21.6 | 288,700 | 69.9 | 288,700 | 37.4 | 271,760 | 39.5 | 212,210 | 37.4 | 180,832 | 31.8 |
Total comprehensive income for the year | Basic earnings per share | Diluted earnings per share | Ratio of profit to total equity attributable to owners of the parent | Ratio of profit before income taxes to total assets | Ratio of business profit to revenue | Ratio of operating profit to revenue | ||||||||||||||||||||||||||
Millions of yen | % | Yen | Yen | % | % | % | % | |||||||||||||||||||||||||
Fiscal 2018 | 85,114 | (72.7 | ) | 281.77 | — | 7.9 | 3.1 | 5.5 | 4.3 | |||||||||||||||||||||||
Fiscal 2017 | 311,759 | 20.2 | 204.87 | — | 6.0 | 3.6 | 5.1 | 5.1 |
(For reference) Share of profit in investments accounted for using the equity method: | Fiscal 2018 | ¥86,411 million | ||
Fiscal 2017 | ¥65,657 million |
(*) | 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. |
(2) Consolidated Financial Position
Total assets | Total equity | Total equity attributable to owners of the parent | Ratio of total equity attributable to owners of the parent to total assets | Total equity attributable to owners of the parent per share | ||||||||||||||||
Millions of yen | Millions of yen | Millions of yen | % | Yen | ||||||||||||||||
Fiscal 2018 | 8,049,528 | 3,607,367 | 3,230,788 | 40.1 | 3,509.72 | |||||||||||||||
Fiscal 2017 | 7,756,134 | 3,524,896 | 3,136,991 | 40.4 | 3,554.21 |
(3) Consolidated Statements of Cash-Flows
Cash flows from operating activities | Cash flows from investing activities | Cash flows from financing activities | Cash and cash equivalents at end of the year | |||||||||||||
Millions of yen | Millions of yen | Millions of yen | Millions of yen | |||||||||||||
Fiscal 2018 | 452,341 | (381,805 | ) | (42,900 | ) | 163,176 | ||||||||||
Fiscal 2017 | 485,539 | (363,170 | ) | (104,969 | ) | 142,869 |
Table of Contents
2. Dividends
Dividends per share | ||||||||||||||||||||
End of first quarter | End of second quarter | End of third quarter | End of fiscal year | Fiscal year | ||||||||||||||||
Yen | Yen | Yen | Yen | Yen | ||||||||||||||||
Fiscal 2017 | — | 30.00 | — | 40.00 | 70.00 | |||||||||||||||
Fiscal 2018 | — | 40.00 | — | 40.00 | 80.00 | |||||||||||||||
Fiscal 2019 (Forecasts) | — | — | — | — | — |
Cash dividends | Ratio of cash dividends to profit | Ratio of cash dividends to total equity attributable to owners of the parent | ||||||||||
Millions of yen | % | % | ||||||||||
Fiscal 2017 | 61,872 | 34.2 | 2.0 | |||||||||
Fiscal 2018 | 72,236 | 28.4 | 2.3 | |||||||||
Fiscal 2019 (Forecasts) | — |
Notes: | The Company has not determined a dividend distribution plan for fiscal 2019 due to the inability to establish reasonable earnings forecasts. The dividend distribution plan will be disclosed when it becomes available. |
3. Consolidated Financial Forecasts for Fiscal 2019 (April 1, 2019—March 31, 2020)
The earnings forecasts for fiscal 2019 are not presented because the outlook has not been determined due to the difficulty formulating reasonably accurate estimates at this time. For further details, please refer to page 7,“(2) Outlook for Fiscal 2019” of “1. Summary of Results of Operations.”
* Notes
(1) Changes in significant subsidiaries during the period: Yes
Number of newly consolidated: 1 Company name: Sanyo Special Steel Co., Ltd.
Number of excluded from consolidation: 0
(2) Changes in accounting policies and changes in accounting estimates
(a) Changes in accounting policies required by the IFRS: Yes
(b) Changes other than those in (a) above: None
(c) Changes in accounting estimates: None
(3) Number of shares issued (common shares)
(a) Number of shares issued at the end of the period (including treasury stock)
| Fiscal 2018 | 950,321,402 shares | ||
Fiscal 2017 | 950,321,402 shares |
(b) Number of treasury stock at the end of the period
| Fiscal 2018 | 29,797,955 shares | ||
Fiscal 2017 | 67,710,915 shares |
(c) Average number of shares issued during the term
| Fiscal 2018 | �� | 891,387,729 shares | |
Fiscal 2017 | 882,629,157 shares |
Table of Contents
(For Reference) A Summary ofNon-Consolidated Operating Results and Financial Position for Fiscal 2018
(April 1, 2018—March 31, 2019)
(1) Non-Consolidated Operating Results
(Percentage figures are changes from the same period of the previous fiscal year.) | ||||||||||||||||||||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit for the year | |||||||||||||||||||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||||||||||||||||||||||||
Fiscal 2018 | 3,562,226 | 9.0 | 25,114 | 291.9 | 112,319 | 4.8 | 145,319 | 22.9 | ||||||||||||||||||||||||
Fiscal 2017 | 3,266,686 | 9.8 | 6,408 | — | 107,213 | 122.7 | 118,275 | 184.7 |
Earnings per share | Diluted earnings per share | |||||||
Yen | Yen | |||||||
Fiscal 2018 | 162.79 | — | ||||||
Fiscal 2017 | 133.81 | — |
(2) Non-Consolidated Financial Position
Total assets | Net assets | Ratio of shareholders’ equity to total assets | Net assets per share | |||||||||||||
Millions of yen | Millions of yen | % | Yen | |||||||||||||
Fiscal 2018 | 5,462,897 | 2,072,452 | 37.9 | 2,247.72 | ||||||||||||
Fiscal 2017 | 5,194,163 | 2,024,648 | 39.0 | 2,290.62 |
(For reference) Shareholders’ equity: | Fiscal 2018 | ¥ 2,072,452 million | ||||
Fiscal 2017 | ¥ 2,024,648 million |
(Note) | The company adopted “Partial Amendments to Accounting Standard for Tax Effect Accounting” (Accounting Standards Board of Japan (“ASBJ”) Guidance No. 28, February 16, 2018) in the beginning of the fiscal year, and reclassified differed tax asset/ liability into fixed asset/ liability retrospectively. Accordingly, Ratio of shareholders’ equity to total assets for fiscal 2017 was recalculated. |
* | This flash report is exempt from the audit procedures. |
* | Explanation of the appropriate use of performance forecasts and other related items |
(Adoption of IFRS) |
The Company has disclosed its consolidated financial results based on International Financial Reporting Standards (IFRS) since fiscal 2018 onwards. Therefore, the financial results for fiscal 2017are reclassified based on IFRS. |
For further details, please refer to page 9,“2. Basic Rationale for Selection of Accounting Standards” |
(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. |
Table of Contents
Index of Attached Documents
1
Table of Contents
1. Summary of Results of Operations
(1) Summary of Results of Operations and Financial Position for Fiscal Year Ended March 31, 2019 (Fiscal 2018)
Overview of Conditions in Fiscal 2018
The global economy as a whole showed gradual growth during fiscal 2018, with ongoing economic growth in the United States and a continued stable economic trend in emerging countries in general, while China’s economy showed some signs of a slowdown. The Japanese economy continued its modest recovery, with ongoing improvement in the employment environment and an increase in capital investment.
Domestic demand for steel remained solid in areas such as the automotive industry, and the overall demand for steel overseas increased. The domestic market remained strong in general on the back of solid demand and, the overseas market as a whole also remained firm despite a temporary decline in the third quarter.
In this business environment, the Nippon Steel & Sumitomo Metal (NSSMC) Group carried out various measures that were devised in its 2020Mid-Term Management Plan established in March 2018. These measures were in line with the following five initiatives that were identified as activities to be tackled in the medium to long term: delivering materials and solutions responsive to changes in society and industry; strengthening and expanding the global business; continuing to strengthen the “manufacturing capabilities” of domestic mother mills; utilizing advanced IT in steelmaking processes; and contributing to the achievement of a sustainable society (SDGs).
Operating Results by Business Segment in the Fiscal 2018
The NSSMC Group’s business segments 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.
The Chemicals segment and New Materials segment were merged to form the Chemicals and Materials segment after Nippon Steel Chemical & Material Co., Ltd. was established in October 2018 following the merger of Nippon Steel & Sumikin Chemical Co., Ltd. and Nippon Steel & Sumikin Materials Co., Ltd.
(Billions of yen) | ||||||||||||||||
Revenue | Business Profit | |||||||||||||||
Fiscal 2018 | Fiscal 2017 | Fiscal 2018 | Fiscal 2017 | |||||||||||||
Steelmaking and Steel Fabrication | 5,454.5 | 5,017.2 | 274.6 | 245.7 | ||||||||||||
Engineering and Construction | 356.7 | 294.2 | 9.4 | 9.1 | ||||||||||||
Chemicals and Materials1 | 247.0 | 237.8 | 25.0 | 17.3 | ||||||||||||
System Solutions | 267.5 | 244.2 | 26.5 | 23.2 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 6,325.8 | 5,793.5 | 335.8 | 295.5 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Adjustments2 | (147.8 | ) | (80.5 | ) | 1.1 | (6.8 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Consolidated total | 6,177.9 | 5,712.9 | 336.9 | 288.7 | ||||||||||||
|
|
|
|
|
|
|
|
1 | The numbers of Chemicals and Materials segment for Fiscal 2017 are totaled the Chemicals segment and the New Materials segment. |
2 | Including the amount of adjustment for IFRS |
2
Table of Contents
Steelmaking and Steel Fabrication
The Steelmaking and Steel Fabrication segment strived to rebuild its “strength in manufacturing” and “strength in sales and marketing” and restore its profit base, with safety as the foremost priority. In Japan, NSSMC continued to work on building optimal production frameworks, which included Wakayama Works’ shift to advanced blast furnace and Yawata Works’ construction of new continuous casting facilities. NSSMC also carried out ongoing initiatives to maintain and increase the soundness of facilities through the introduction of the latest facilities and refurbishing of existing facilities. Relining of a blast furnace at Hokkai Iron & Coke Corporation, which handles the Muroran Works’ upstream processes, and of a coke oven at the Nagoya Works are among these initiatives. The decline in Japan’s working population was also addressed with activities to secure enough workers and to ensure succession to the next generation. They included promotion of diversity in hiring, succession of technical skills from a long-term perspective, personnel development measures, labor-saving measures (use of IT and automation) to cope with the worker shortage caused by the decline in the population, more stable production, and an increase in productivity.
Concerning overseas operations, NSSMC focused on deploying management resources in markets showing steady growth in demand and fields where it can apply the strengths of its technology and products, seeking to contribute to self-sufficient production in the countries concerned and increasing the profitability of its own overseas businesses at the same time. Since fiscal 2018, NSSMC has carried out and still continues proceedings for the joint acquisition of EssarSteel India Limited, an integrated blast furnace steelmaker in India, with ArcelorMittal to secure an integrated steelworks base in the growing Asian market. Upon completion of the acquisition, NSSMC and AcelorMittal will be able to capitalize on India’s growing steel demand in the medium- to long-term as a steel manufacturer with an integrated steelworks facility in India.
Ongoing initiatives were also carried out to strengthen the group’s business structure. Nisshin Steel Co., Ltd. was made a wholly-owned subsidiary in January 2019 and the NSSMC Group’s stainless steel business was restructured in April by reorganizing and integrating the stainless steel sheet business and the welded stainless steel pipe business, with the aim of further enhancing the competitiveness of these businesses. In the special steel business, Sanyo Special Steel Co., Ltd. became a subsidiary of NSSMC in March and Ovako AB, a Swedish special steel manufacturer that became a wholly-owned subsidiary of NSSMC last June, was again made into a wholly-owned subsidiary of Sanyo Special Steel. These changes are intended to enhance the technological strength and cost competitiveness of our bearing steel and other special steel products.
The Steelmaking and Steel Fabrication segment expanded the provision of solutions, such as in material development and processing technology, to address increasingly diversified, advanced changes in society and industries. In addition to the development of advanced materials, NSSMC has proposed new potentials for steel in a variety of fields. Examples include NSafeTM-AutoConcept, a new concept for next-generation vehicle structures that realizes a reduction in automobile body weight and the enhancement in collision safety by combining parts structure with processing technologies;COR-TENTM, a material with four to eight times the weather resistance of conventional steel, which was adopted in the Second Torii Gate of Izumo Taisha Grand Shrine; and SMart BEAMTM, a lightweight welded steelH-beam that achieves a significant reduction in the weight of steel materials, adoption of which is increasing in construction of roadside convenience stores.
3
Table of Contents
Concerning the promotion of world-leading technology development, at the 65th Okochi Awards, which recognizes outstanding achievements in fields such as production engineering, NSSMC won the Okochi Memorial Production Award for its “development of an ultra-high-tensile material for bridge cables that will reduce impact on the environment.” NSSMC also received two awards at the traditional and prestigious 51st Ichimura Awards, which recognize technical developers who have contributed to progress in science and technology and advancements in industries. Specifically, they were the Ichimura Prize in Industry for Distinguished Achievement for the “development of thick, high-ductility steel plates to improve safety in collisions between boats,” and the Ichimura Prize in Industry against Global Warming for Distinguished Achievement for the “development of high-strength stainless steel for high-pressure hydrogen to accelerate initiatives to achieve a hydrogen society.”
With regard to environmental initiatives, NSSMC has been contributing to the conservation of energy, the reduction of CO2 emissions, and the building of a recycling-oriented society. In fiscal 2018 NSSMC achieved a total of three million tons on an accumulated basis of plastic recycling using its method of converting raw chemical materials in coke ovens that was launched in 2000. This has resulted in a reduction of around 9.6 million tons of CO2 emissions and prevention of around 12 million cubic meters of waste that would otherwise have been sent to landfills.
Furthermore, NSSMC also continued to strive to reduce raw material and fuel costs and improve production yield, from the perspective of cost reduction, and to seek the understanding and cooperation of its customers in adjusting steel product prices, given the surge in raw material prices and other factors. The Steelmaking and Steel Fabrication segment recorded revenue of ¥5,454.5 billion and business profit of ¥274.6 billion.
Engineering and Construction
Nippon Steel & Sumikin Engineering Co., Ltd. (renamed Nippon Steel Engineering Co., Ltd. as of April 1, 2019) builds and operates plants in the steelworks, environmental and energy fields, and provides total engineering technology worldwide in a variety of fields such as large-scale steel structures in buildings, ultra-high-rise buildings and pipelines. In fiscal 2018, due to a steady stream of orders received in the domestic energy field and the continued solid business environment in the domestic construction and environment-related sectors, the company achieved a high-level of orders similar to that in fiscal 2017. Strict control of project execution led to steady progress toward project completions. As a result, the Engineering and Construction segment recorded revenue of ¥356.7 billion and business profit of ¥9.4 billion.
Chemicals and Materials
Nippon Steel Chemical & Material Co., Ltd. was formed through a merger of two group companies in October 2018. The company continued to perform well in both the domestic and overseas markets with its needle coke, the mainstay of its coal tar chemicals business, due to ongoing demand for graphite electrode materials. In the chemicals business, styrene monomer prices fell briefly due to a price decrease and a weaker supply and demand balance for crude oil, but prices are now on a recovery trend. In the functional materials business, some signs of weakness were seen in sales of materials for smartphones and semiconductors, but steady sales were achieved in resists for LCDs, organic EL materials and metal foils. The composite materials business achieved its record-high sales due to a growth in sales of carbon fiber composite materials for the civil engineering and construction fields, primarily in the areas of repairs and reinforcements. The Chemicals and Materials segment posted revenue of ¥247.0 billion and business profit of ¥25.0 billion.
4
Table of Contents
System Solutions
NS Solutions Corporation (renamed Nippon Steel Solutions Co., Ltd. as of April 1, 2019) 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 fiscal 2018, 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 to developing safe, protective solutions at factories and other work sites that make use of IoT technology and developing platforms to analyze data based on AI technology, NS Solutions proceeded proactively in making changings to the company’s systems following the corporate name change to Nippon Steel Corporation and the reorganization of the group. The System Solutions segment recorded revenue of ¥267.5 billion and business profit of ¥26.5 billion.
Revenue and Profit
Consolidated results for fiscal 2018 were mainly affected by natural disasters such as heavy rains and typhoons, an overall cost increase, stemming from a surge in prices of primary raw materials, rises in costs of commodity materials, other material procurement costs, and distribution costs, and by the negative impact of differences in inventory evaluations by NSSMC and its group companies. Meanwhile, in addition to corporate-wide efforts to implement measures to stabilize facilities and operations and the steady execution of cost reduction measures, positive factors included an improvement in steel product prices, driven mainly by a rise in overseas markets, especially in the first half of fiscal 2018, and profit improvement in business segments other than Steelmaking and Steel Fabrication. As a result, NSSMC posted revenue of ¥6,177.9 billion, business profit of ¥336.9 billion and profit for the year attributable to owners of the parent of ¥251.1 billion.
Assets, Liabilities, Equity, and Cash Flows
Consolidated total assets as of March 31, 2019 were ¥8,049.5 billion, an increase of ¥293.3 billion as compared to as of March 31, 2018. This increase was primarily due to a rise in trade and other receivables of ¥136.2 billion, the inventories of ¥167.2 billion and property, plant and equipment of ¥122.8 billion mainly resulting from acquisition of Sanyo Special Steel Co., Ltd. and Ovako AB, which offset a decrease in other financial assets(non-current) of ¥194.9 billion caused by a fair value decrease and sales of investment securities.
Consolidated total liabilities as of March 31, 2019 were ¥4,442.1 billion, an increase of ¥210.9 billion as compared to as of March 31, 2018. This increase was primarily due to a rise in interest-bearing liabilities of ¥211.4 billion, from ¥2,157.7 billion as of March 31, 2018 to ¥2,369.2 billion as of March 31, 2019.
5
Table of Contents
Consolidated total equity as of March 31, 2019 was ¥3,607.3 billion, an increase of ¥82.4 billion as compared to as of March 31, 2018. This increase was primarily due to profit for the year attributable to owners of the parent of ¥251.1 billion and disposals of treasury stock of 73.3 billion, which offset a decrease in fair value of financial assets measured at fair value through other comprehensive income of ¥86.6 billion, foreign exchange differences on translation of foreign operations of 60.5 billion and dividends of ¥70.7 billion.
As a result, total equity attributable to owners of the parent at the end of fiscal 2018 amounted to ¥3,230.7 billion, and the ratio of interest-bearing debt to total equity attributable to owners of the parent (D/E ratio) was 0.73 times.
Cash flows from operating activities in fiscal 2018 amounted to an inflow of ¥452.3 billion. The main factors were inflows of ¥248.7 billion from profit before income taxes, depreciation and amortization of ¥408.6 billion and adjustment of ¥49.4 billion from losses from reorganization, as well as outflows from an increase in inventories of ¥129.4 billion and income taxes payment of ¥80.8 billion.
Cash flows from investing activities amounted to an outflow of ¥381.8 billion, as outflows from capital investments of ¥438.7 billion, investments in subsidiaries and associates of 38.4 billion such as Sanyo Special Steel Co., Ltd. and Ovako AB, and other items exceeded inflows which included proceeds of ¥87.6 billion from sales of investment securities.
The result was a free cash inflow of ¥70.5 billion in fiscal 2018 (compared to an inflow of ¥122.3 billion in fiscal 2017).
Cash flows from financing activities amounted to an outflow of ¥42.9 billion (compared to an outflow of ¥104.9 billion in fiscal 2017), largely due to the effective increase of interest-bearing debt of ¥134.7 billion after deducting the impact of increase in interest-bearing debt of ¥76.7 billion with the effect of acquisition of Sanyo Special Steel Co., Ltd. and Ovako AB. Other factors included the payment of cash dividends of ¥70.7 billion for the end of fiscal 2017 and 1st half of fiscal 2018.
As a result of these cash flows, cash and cash equivalents at the end of the fiscal year stood at ¥163.1 billion.
6
Table of Contents
Basic Profit Distribution Policy and theYear-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 andnon-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.
Concerning dividend distribution, in accordance with the basic profit distribution policy described above, NSSMC paid a dividend of ¥40 per share for the end of the first half (interim). Regarding the fiscalyear-end dividend, following the previously stated policy and as announced at the time of third quarter performance result (February 6, 2019), the Company now plans to request the approval of the General Meeting of Shareholders to distribute ayear-end dividend payment of ¥40 per share (bringing the dividend for the full year to ¥80 per share and representing a consolidated payout ratio of 28.4%).
(2) Outlook for the Fiscal Year Ending March 31, 2020 (Fiscal 2019)
Outlook for Operations in Fiscal 2019
NSSMC anticipates that the overall global economy will continue to grow moderately, as the government in China has been focusing on implementing various measures to support its economy and the United States is likely to sustain stable economic conditions. The Japanese economy is also expected to maintain its recovery, supported by further improvements in the employment environments.
In Japan, demand for steel and steel market prices are forecast to remain firm. While overseas steel demand and market conditions remain strong at present, there is a risk of economic downturn depending on the success or failure of economic measures by the Chinese government and the direction taken regarding theUS-China trade issues. Developments will require close monitoring.
NSSMC is unable at this time to establish reasonably accurate earnings estimates for fiscal 2019. This is due to ongoing initiatives to secure appropriate margins that enable us to sustain business, and the fact that NSSMC is under negotiation with customers regarding possible improvement of steel product prices, in light of the impacts of increased costs, stemming from a rise in prices of primary raw materials as well as rises in costs of commodity materials, other material procurement, and distribution. We will disclose earnings forecasts when reasonable estimates become possible.
7
Table of Contents
Through the execution of the 2020Mid-Term Management Plan, the NSSMC Group will continue to forge manufacturing capabilities in its Japanese mother mills while addressing megatrends sparked by major social and industrial changes such as rapid innovation in IT, automakers’ growing need for lighter and stronger vehicles and a shift to electric and other new energy vehicles. NSSMC is also striving to advance towards its aim of being “the best steelmaker with world-leading capabilities” by further improving its capabilities through tireless pursuit of three elements — technological innovation, cost competitiveness, and global reach — and by “creating the value of steel”.
While NSSMC achieved a certain level of consolidated results in fiscal 2018, itsnon-consolidated results have stayed at a low level in the last few years, and we recognize that we need to rebuild and strengthen our profit base. With many of its steelworks, which began operation during Japan’s postwar high economic growth period, celebrating a50-year milestone of their operation, and with a generation change under way in its workforce, NSSMC intends to overcome a major structural reform, which may be described as its second foundation stage, and restore its profit base in order to secure appropriate sales prices to secure appropriate margins that enable us to sustain business.
Specifically, in addition to the steady execution of various measures set out in theMid-Term Management Plan, which are aimed at rebuilding NSSMC’s “strength in manufacturing” and enhancing its “strength in marketing and sales,” we will further enhance asset compression measures and raise the efficiency of capital investment to reinforce the plan, while promoting drastic measures to strengthen our profit base.
In April 2019 the company name was changed to “Nippon Steel Corporation,” this signifies that while inheriting what biologists call “hybrid vigor,” we will move forward and grow in the world market, as a global steelmaker with origins in Japan.
Outlook for Distribution of Dividends for Fiscal 2019
Nippon Steel has not determined a dividend distribution plan for fiscal 2019 due to the inability to establish reasonable earnings forecasts, as stated above. The dividend distribution plan will be disclosed when it becomes available.
8
Table of Contents
2. Basic Rationale for Selection of Accounting Standards
NSSMC has applied the International Financial Reporting Standards (IFRS) to financial statements for the fiscal year ending March 31, 2018 onwards for purposes such as to increase corporate value through enhancement of global business development and improve international comparability of financial information in capital markets.
The Company has set the date of transition to the IFRS as April 1, 2016 in the Registration Statement on FormF-4 (the “FormF-4”) that the Company filed with the U.S. Securities and Exchange Commission (the “SEC”) on November 2, 2018. The Company has started to prepare its consolidated financial statements by adopting the IFRS since the consolidated fiscal year ending March 31, 2018.
The provisions regarding the first-time adoption, provided in IFRS 1, were adopted to the consolidated financial statements for the consolidated fiscal year ending March 31, 2018 in FormF-4, and the reconciliations from the Japanese GAAP to the IFRS have been prepared for the date of the transition to the IFRS, the consolidated fiscal year ending March 31, 2017, and the consolidated fiscal year ending March 31, 2018.
For this reason, the preparation of the consolidated financial statements for this fiscal year prepared in accordance with the IFRS do not fall under a first-time adoption. Therefore, the Company did not prepare the reconciliations from the Japanese GAAP to the IFRS for this fiscal year, which are required by IFRS 1 to be prepared upon the first-time adoption of the IFRS.
A copy of the registration statement on FormF-4 can be reviewed and obtained on EDGAR, the SEC’s Electric Data Gathering, Analysis, and Retrieval system.
(https://www.sec.gov/Archives/edgar/data/1140471/000119312518316702/0001193125-18-316702-index.htm)
9
Table of Contents
3. Consolidated Financial Statements and Major Notes
(1) Consolidated Statements of Financial Position
(Millions of Yen) | ||||||||
ASSETS | March 31, 2018 | March 31, 2019 | ||||||
Current assets : | ||||||||
Cash and cash equivalents | 142,869 | 163,176 | ||||||
Trade and other receivables | 832,040 | 968,333 | ||||||
Inventories | 1,399,821 | 1,567,116 | ||||||
Other financial assets | 19,178 | 16,915 | ||||||
Other current assets | 139,066 | 143,669 | ||||||
Total current assets | 2,532,977 | 2,859,211 | ||||||
|
|
|
| |||||
Non-current assets : | ||||||||
Property, plant and equipment | 3,123,857 | 3,246,669 | ||||||
Goodwill | 42,263 | 52,803 | ||||||
Intangible assets | 97,131 | 106,131 | ||||||
Investments accounted for using the equity method | 799,239 | 793,146 | ||||||
Other financial assets | 1,007,627 | 812,668 | ||||||
Defined benefit assets | 109,010 | 82,247 | ||||||
Deferred tax assets | 34,944 | 88,357 | ||||||
Othernon-current assets | 9,082 | 8,292 | ||||||
Totalnon-current assets | 5,223,157 | 5,190,316 | ||||||
|
|
|
| |||||
Total assets | 7,756,134 | 8,049,528 | ||||||
|
|
|
|
10
Table of Contents
(Millions of Yen) | ||||||||
March 31, 2018 | March 31, 2019 | |||||||
LIABILITIES | ||||||||
Current liabilities : | ||||||||
Trade and other payables | 1,580,597 | 1,611,403 | ||||||
Bonds, borrowings and lease liabilities | 505,384 | 515,355 | ||||||
Other financial liabilities | 674 | 1,017 | ||||||
Income taxes payable | 45,350 | 38,719 | ||||||
Other current liabilities | 28,189 | 34,042 | ||||||
Total current liabilities | 2,160,194 | 2,200,538 | ||||||
|
|
|
| |||||
Non-current liabilities : | ||||||||
Bonds, borrowings and lease liabilities | 1,652,371 | 1,853,876 | ||||||
Other financial liabilities | 6,572 | 6,501 | ||||||
Defined benefit liabilities | 173,619 | 186,755 | ||||||
Deferred tax liabilities | 95,351 | 28,253 | ||||||
Othernon-current liabilities | 143,127 | 166,235 | ||||||
Totalnon-current liabilities | 2,071,043 | 2,241,622 | ||||||
|
|
|
| |||||
Total liabilities | 4,231,238 | 4,442,160 | ||||||
|
|
|
| |||||
EQUITY | ||||||||
Common stock | 419,524 | 419,524 | ||||||
Capital surplus | 386,867 | 393,917 | ||||||
Retained earnings | 2,141,658 | 2,300,175 | ||||||
Treasury stock | (132,162 | ) | (58,831 | ) | ||||
Other components of equity | 321,101 | 176,000 | ||||||
Total equity attributable to owners of the parent | 3,136,991 | 3,230,788 | ||||||
|
|
|
| |||||
Non-controlling interests | 387,905 | 376,579 | ||||||
|
|
|
| |||||
Total equity | 3,524,896 | 3,607,367 | ||||||
|
|
|
| |||||
Total liabilities and equity | 7,756,134 | 8,049,528 | ||||||
|
|
|
|
11
Table of Contents
(2) Consolidated Statements of Profit or Loss and
Consolidated Statements of Comprehensive Income or Loss
Consolidated Statements of Profit or Loss | (Millions of Yen) | |||||||
Fiscal 2017 | Fiscal 2018 | |||||||
Revenue | 5,712,965 | 6,177,947 | ||||||
Cost of sales | (4,948,883 | ) | (5,391,493 | ) | ||||
|
|
|
| |||||
Gross profit | 764,082 | 786,453 | ||||||
|
|
|
| |||||
Selling, general and administrative expenses | (533,787 | ) | (568,409 | ) | ||||
Share of profit in investments accounted for using the equity method | 65,657 | 86,411 | ||||||
Other operating income | 91,521 | 102,606 | ||||||
Other operating expenses | (98,773 | ) | (70,120 | ) | ||||
|
|
|
| |||||
Business profit | 288,700 | 336,941 | ||||||
|
|
|
| |||||
Losses on natural disaster | — | (22,349 | ) | |||||
Losses from reorganization | — | (49,480 | ) | |||||
|
|
|
| |||||
Operating profit | 288,700 | 265,111 | ||||||
|
|
|
| |||||
Finance income | 7,644 | 6,104 | ||||||
Finance costs | (24,584 | ) | (22,445 | ) | ||||
|
|
|
| |||||
Profit before income taxes | 271,760 | 248,769 | ||||||
|
|
|
| |||||
Income tax expense | (59,549 | ) | 8,809 | |||||
|
|
|
| |||||
Profit for the year | 212,210 | 257,579 | ||||||
|
|
|
| |||||
Profit for the year attributable to : | ||||||||
Owners of the parent | 180,832 | 251,169 | ||||||
Non-controlling interests | 31,377 | 6,409 | ||||||
|
|
|
| |||||
Earnings per share | ||||||||
Basic earnings per share (Yen) | 204.87 | 281.77 | ||||||
|
|
|
| |||||
Consolidated Statements of Comprehensive Income or Loss | (Millions of Yen) | |||||||
Fiscal 2017 | Fiscal 2018 | |||||||
Profit for the year | 212,210 | 257,579 | ||||||
Other comprehensive income | ||||||||
Items that cannot be reclassified to profit or loss | ||||||||
Changes in fair value of financial assets measured at fair value through other comprehensive income | 65,222 | (104,557 | ) | |||||
Remeasurements of defined benefit plans | 19,422 | (3,531 | ) | |||||
Share of other comprehensive income of investments accounted for using the equity method | 5,125 | (2,953 | ) | |||||
|
|
|
| |||||
Subtotal items that cannot be reclassified to profit or loss | 89,770 | (111,042 | ) | |||||
|
|
|
| |||||
Items that might be reclassified to profit or loss | ||||||||
Changes in fair value of cash flow hedges | 1,788 | 1,522 | ||||||
Foreign exchange differences on translation of foreign operations | 10,592 | (41,256 | ) | |||||
Share of other comprehensive income of investments accounted for using the equity method | (2,602 | ) | (21,687 | ) | ||||
|
|
|
| |||||
Subtotal items that might be reclassified to profit or loss | 9,778 | (61,421 | ) | |||||
|
|
|
| |||||
Total other comprehensive income, net of tax | 99,548 | (172,464 | ) | |||||
|
|
|
| |||||
Total comprehensive income for the year | 311,759 | 85,114 | ||||||
|
|
|
| |||||
Comprehensive income for the year attributable to: | ||||||||
Owners of the parent | 272,150 | 84,126 | ||||||
Non-controlling interests | 39,609 | 988 | ||||||
|
|
|
|
12
Table of Contents
(3) Consolidated Statements of Changes in Equity
Fiscal 2017 | (Millions of Yen) | |||||||||||||||||||||||
Equity attributable to owners of the parent | ||||||||||||||||||||||||
Common stock | Capital surplus | Retained earnings | Treasury stock | Other components of equity | ||||||||||||||||||||
Changes in fair value of financial assets measured at fair value through other comprehensive income | Remeasurements of defined benefit plans | |||||||||||||||||||||||
Balance at beginning of the year | 419,524 | 386,869 | 2,000,336 | (132,063 | ) | 277,939 | — | |||||||||||||||||
Changes of the year | ||||||||||||||||||||||||
Comprehensive income | ||||||||||||||||||||||||
Profit for the year | 180,832 | |||||||||||||||||||||||
Other comprehensive income | 63,963 | 19,581 | ||||||||||||||||||||||
Total comprehensive income | — | — | 180,832 | — | 63,963 | 19,581 | ||||||||||||||||||
Transactions with owners and other | ||||||||||||||||||||||||
Cash dividends | (66,293 | ) | ||||||||||||||||||||||
Purchases of treasury stock | (102 | ) | ||||||||||||||||||||||
Disposals of treasury stock | 1 | 3 | ||||||||||||||||||||||
Changes in ownership interests in subsidiaries | (3 | ) | ||||||||||||||||||||||
Transfer from other components of equity to retained earnings | 26,783 | (7,201 | ) | (19,581 | ) | |||||||||||||||||||
Business combinations and others | 0 | |||||||||||||||||||||||
Subtotal transactions with owners and other | — | (1 | ) | (39,510 | ) | (98 | ) | (7,201 | ) | (19,581 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance at end of the year | 419,524 | 386,867 | 2,141,658 | (132,162 | ) | 334,701 | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Equity attributable to owners of the parent | Non-controlling interests | Total equity | ||||||||||||||||||||||
Other components of equity | Total equity attributable to owners of the parent | |||||||||||||||||||||||
Changes in fair value of cash flow hedges | Foreign exchange differences on translation of foreign operations | Total | ||||||||||||||||||||||
Balance at beginning of the year | (9,253 | ) | (12,117 | ) | 256,568 | 2,931,234 | 356,072 | 3,287,307 | ||||||||||||||||
Changes of the year | ||||||||||||||||||||||||
Comprehensive income | ||||||||||||||||||||||||
Profit for the year | 180,832 | 31,377 | 212,210 | |||||||||||||||||||||
Other comprehensive income | 2,653 | 5,118 | 91,317 | 91,317 | 8,231 | 99,548 | ||||||||||||||||||
Total comprehensive income | 2,653 | 5,118 | 91,317 | 272,150 | 39,609 | 311,759 | ||||||||||||||||||
Transactions with owners and other | ||||||||||||||||||||||||
Cash dividends | (66,293 | ) | (7,406 | ) | (73,700 | ) | ||||||||||||||||||
Purchases of treasury stock | (102 | ) | (102 | ) | ||||||||||||||||||||
Disposals of treasury stock | 4 | 4 | ||||||||||||||||||||||
Changes in ownership interests in subsidiaries | (3 | ) | (766 | ) | (769 | ) | ||||||||||||||||||
Transfer from other components of equity to retained earnings | (26,783 | ) | — | |||||||||||||||||||||
Business combinations and others | 0 | 396 | 397 | |||||||||||||||||||||
Subtotal transactions with owners and other | — | — | (26,783 | ) | (66,393 | ) | (7,776 | ) | (74,170 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance at end of the year | (6,600 | ) | (6,998 | ) | 321,101 | 3,136,991 | 387,905 | 3,524,896 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
13
Table of Contents
Fiscal 2018 | (Millions of Yen) | |||||||||||||||||||||||
Equity attributable to owners of the parent | ||||||||||||||||||||||||
Common stock | Capital surplus | Retained earnings | Treasury stock | Other components of equity | ||||||||||||||||||||
Changes in fair value of financial assets measured at fair value through other comprehensive income | Remeasurements of defined benefit plans | |||||||||||||||||||||||
Balance at beginning of the year | 419,524 | 386,867 | 2,141,658 | (132,162 | ) | 334,701 | — | |||||||||||||||||
Changes of the year | ||||||||||||||||||||||||
Comprehensive income | ||||||||||||||||||||||||
Profit for the year | 251,169 | |||||||||||||||||||||||
Other comprehensive income | (104,254 | ) | (4,369 | ) | ||||||||||||||||||||
Total comprehensive income | — | — | 251,169 | — | (104,254 | ) | (4,369 | ) | ||||||||||||||||
Transactions with owners and other | ||||||||||||||||||||||||
Cash dividends | (70,710 | ) | ||||||||||||||||||||||
Purchases of treasury stock | (82 | ) | ||||||||||||||||||||||
Disposals of treasury stock | (1,427 | ) | 73,656 | |||||||||||||||||||||
Changes in ownership interests in subsidiaries | 8,477 | |||||||||||||||||||||||
Transfer from other components of equity to retained earnings | (21,942 | ) | 17,573 | 4,369 | ||||||||||||||||||||
Business combinations and others | (242 | ) | ||||||||||||||||||||||
Subtotal transactions with owners and other | — | 7,050 | (92,652 | ) | 73,331 | 17,573 | 4,369 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance at end of the year | 419,524 | 393,917 | 2,300,175 | (58,831 | ) | 248,020 | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Equity attributable to owners of the parent | Non-controlling interests | Total equity | ||||||||||||||||||||||
Other components of equity | Total equity attributable to owners of the parent | |||||||||||||||||||||||
Changes in fair value of cash flow hedges | Foreign exchange differences on translation of foreign operations | Total | ||||||||||||||||||||||
Balance at beginning of the year | (6,600 | ) | (6,998 | ) | 321,101 | 3,136,991 | 387,905 | 3,524,896 | ||||||||||||||||
Changes of the year | ||||||||||||||||||||||||
Comprehensive income | ||||||||||||||||||||||||
Profit for the year | 251,169 | 6,409 | 257,579 | |||||||||||||||||||||
Other comprehensive income | 2,166 | (60,586 | ) | (167,043 | ) | (167,043 | ) | (5,420 | ) | (172,464 | ) | |||||||||||||
Total comprehensive income | 2,166 | (60,586 | ) | (167,043 | ) | 84,126 | 988 | 85,114 | ||||||||||||||||
Transactions with owners and other | ||||||||||||||||||||||||
Cash dividends | (70,710 | ) | (7,604 | ) | (78,315 | ) | ||||||||||||||||||
Purchases of treasury stock | (82 | ) | (82 | ) | ||||||||||||||||||||
Disposals of treasury stock | 72,228 | 72,228 | ||||||||||||||||||||||
Changes in ownership interests in subsidiaries | 8,477 | (94,092 | ) | (85,614 | ) | |||||||||||||||||||
Transfer from other components of equity to retained earnings | 21,942 | — | ||||||||||||||||||||||
Business combinations and others | (242 | ) | 89,383 | 89,140 | ||||||||||||||||||||
Subtotal transactions with owners and other | — | — | 21,942 | 9,670 | (12,314 | ) | (2,643 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance at end of the year | (4,433 | ) | (67,585 | ) | 176,000 | 3,230,788 | 376,579 | 3,607,367 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
14
Table of Contents
(4) Consolidated Statements of Cash-Flows
Millions of yen | ||||||||
Fiscal 2017 | Fiscal 2018 | |||||||
Cash flows from operating activities : | ||||||||
Profit before income taxes | 271,760 | 248,769 | ||||||
Depreciation and amortization | 366,565 | 408,616 | ||||||
Finance income | (7,644 | ) | (6,104 | ) | ||||
Finance costs | 24,584 | 22,445 | ||||||
Share of profit in investments accounted for using the equity method | (65,657 | ) | (86,411 | ) | ||||
Gains on sales of property, plant and equipment and intangible assets | (9,312 | ) | (5,801 | ) | ||||
Losses from reorganization | — | 49,480 | ||||||
(Increase) decrease in trade and other receivables | 931 | (114,662 | ) | |||||
(Increase) in inventories | (165,166 | ) | (129,483 | ) | ||||
Increase in trade and other payables | 92,326 | 81,058 | ||||||
Other, net | 18,674 | 21,640 | ||||||
|
|
|
| |||||
Subtotal | 527,062 | 489,547 | ||||||
|
|
|
| |||||
Interest received | 5,644 | 5,796 | ||||||
Dividends received | 45,775 | 57,088 | ||||||
Interest paid | (26,506 | ) | (19,278 | ) | ||||
Income taxes paid | (66,435 | ) | (80,811 | ) | ||||
|
|
|
| |||||
Net cash flows provided by operating activities | 485,539 | 452,341 | ||||||
|
|
|
| |||||
Cash flows from investing activities : | ||||||||
Purchases of property, plant and equipment and intangible assets | (411,926 | ) | (438,758 | ) | ||||
Proceeds from sale of property, plant and equipment and intangible assets | 13,908 | 12,841 | ||||||
Purchases of investment securities | (3,169 | ) | (8,362 | ) | ||||
Proceeds from sales of investment securities | 39,936 | 87,693 | ||||||
Purchases of investments in associates | (4,940 | ) | (2,787 | ) | ||||
Proceeds from sale of investments in associates | 9,522 | 5,348 | ||||||
Purchases of shares of subsidiaries resulting in change in scope of consolidation | 289 | (35,658 | ) | |||||
Proceeds from sales of shares of subsidiaries resulting in change in scope of consolidation | 473 | 3,575 | ||||||
Loans to associates and others | (6,688 | ) | (11,870 | ) | ||||
Collection of loans from associates and others | 2,878 | 3,948 | ||||||
Other, net | (3,455 | ) | 2,223 | |||||
|
|
|
| |||||
Net cash flows used in investing activities | (363,170 | ) | (381,805 | ) | ||||
|
|
|
| |||||
Cash flows from financing activities : | ||||||||
Increase in short-term borrowings, net | 50,026 | 67,401 | ||||||
Proceeds from long-term borrowings | 247,507 | 285,857 | ||||||
Repayments of long-term borrowings | (257,212 | ) | (192,799 | ) | ||||
Proceeds from issuance of bonds | 40,000 | 60,000 | ||||||
Redemption of bonds | (140,000 | ) | (85,700 | ) | ||||
Purchases of treasury stock | (96 | ) | (55 | ) | ||||
Cash dividends paid | (66,293 | ) | (70,710 | ) | ||||
Dividends paid tonon-controlling interests | (7,406 | ) | (7,604 | ) | ||||
Payments from changes in ownership interests in subsidiaries that do not result in change in scope of consolidation | (740 | ) | (4,874 | ) | ||||
Other, net | 29,245 | (94,415 | ) | |||||
|
|
|
| |||||
Net cash flows used in financing activities | (104,969 | ) | (42,900 | ) | ||||
|
|
|
| |||||
Effect of exchange rate changes on cash and cash equivalents | 1,540 | (7,328 | ) | |||||
|
|
|
| |||||
Net increase in cash and cash equivalents | 18,940 | 20,306 | ||||||
|
|
|
| |||||
Cash and cash equivalents at beginning of the year | 123,929 | 142,869 | ||||||
|
|
|
| |||||
Cash and cash equivalents at end of the year | 142,869 | 163,176 | ||||||
|
|
|
|
15
Table of Contents
(5) Notes to the Consolidated Financial Statements
None
(Changes in Accounting Policies Required by the IFRS)
The Company has adopted IFRS 15 “Revenue from Contracts with Customers” from the fiscal year ended March 31, 2019.
In applying IFRS 15, the Company elected to apply the cumulative effect transition method where the cumulative effect of applying the standard is recognized at the date of initial application. The Company expects that the adoption of the standard had no significant effect on each amount recognized in the consolidated financial statements.
1) Summary of reportable segment
The Company engages in the steelmaking and steel fabrication business and acts as the holding company of the Group. The Group has four operating segments determined mainly based on product and service, which are steelmaking and steel fabrication, engineering and construction, chemicals and materials, and system solutions. Each operating segment shares the management strategy of the Group, while conducting its business activities independently from and in parallel with other companies of the Group. The following summary describes the operations of each reportable segment:
Reportable segment | Principal businesses | |
Steelmaking and steel fabrication | Manufacturing and marketing of steel products | |
Engineering and construction | Manufacturing and marketing of industrial machinery and equipment as well as steel structures, performance of construction work under contract, waste processing and recycling, and supplying electricity, gas, and heat | |
Chemicals and Materials | Manufacturing and marketing of coal-based chemical products, petrochemicals, electronic materials, materials and components for semiconductors and electronic parts, carbon fiber and composite products, and products that apply technologies for metal processing | |
System solutions | Computer systems engineering and consulting services;IT-enabled outsourcing and other services |
16
Table of Contents
2) Information on the amounts of revenue and profit for reportable segments
Fiscal 2017 (April 1, 2017—March 31, 2018)
(Millions of Yen) | ||||||||||||||||||||||||||||||||||||
Reportable segment | Subtotal | Adjustments | Total | IFRS Adjustment | Consolidated | |||||||||||||||||||||||||||||||
Steelmaking and steel fabrication | Engineering and construction | Chemicals and Materials | System solutions | |||||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||||||
Revenue from external customers | 4,983,335 | 260,908 | 234,108 | 190,310 | 5,668,663 | — | 5,668,663 | 44,302 | 5,712,965 | |||||||||||||||||||||||||||
Inter-segment revenue or transfers | 33,910 | 33,360 | 3,709 | 53,889 | 124,868 | (124,868 | ) | — | — | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Total | 5,017,245 | 294,268 | 237,817 | 244,200 | 5,793,531 | (124,868 | ) | 5,668,663 | 44,302 | 5,712,965 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Segment profit | 245,708 | 9,110 | 17,399 | 23,292 | 295,510 | 2,030 | 297,541 | (8,840 | ) | 288,700 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* | Segment profit for each reportable segment is measured using ordinary profit under Japanese GAAP, which is adjusted to Business Profit on IFRS-based consolidated statement of profit or loss. |
Fiscal 2018 (April 1, 2018—March 31, 2019)
(Millions of Yen) | ||||||||||||||||||||||||||||
Reportable segment | Total | Adjustments | Consolidated | |||||||||||||||||||||||||
Steelmaking and steel fabrication | Engineering and construction | Chemicals and Materials | System solutions | |||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||
Revenue from external customers | 5,408,633 | 321,346 | 243,014 | 204,952 | 6,177,947 | — | 6,177,947 | |||||||||||||||||||||
Inter-segment revenue or transfers | 45,902 | 35,360 | 4,052 | 62,550 | 147,867 | (147,867 | ) | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | 5,454,536 | 356,707 | 247,067 | 267,503 | 6,325,814 | (147,867 | ) | 6,177,947 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Segment profit | 274,672 | 9,474 | 25,095 | 26,576 | 335,818 | 1,122 | 336,941 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17
Table of Contents
1. Profit for the year attributable to common shares of parent
(Millions of Yen) | ||||||||
Fiscal 2017 (April 1, 2017—March 31, 2018) | Fiscal 2018 (April 1, 2018—March 31, 2019) | |||||||
Profit for the year attributable to owners of parent | 180,832 | 251,169 | ||||||
Profit for the year not attributable to ordinary equity holders of the parent | — | — | ||||||
Profit for the year used to calculate basic earnings per share | 180,832 | 251,169 | ||||||
2. Average number of outstanding common shares during the period | ||||||||
Fiscal 2017 (April 1, 2017—March 31, 2018) | Fiscal 2018 (April 1, 2018—March 31, 2019) | |||||||
Average number of outstanding common shares during the period | 882,629,157 Shares | 891,387,729 Shares |
Diluted earnings per share is not presented as there are no potential dilutive shares.
(Significant Subsequent Events)
None
18
Table of Contents
Nippon Steel Corporation (5401)
May 9, 2019
Results and dividends of Fiscal 2018 (Year ended March 31, 2019)
(Billions of Yen) | ||||||||||||||||||||||||||||
2018FY | 1st half | 2nd half | 1st halfÞ 2nd half | 2017FY | 2017FYÞ 2018FY | Previous Forecasts (Released on Feb 6, 2019) | ||||||||||||||||||||||
Revenue | 6,177.9 | 2,940.0 | 3,237.9 | + 297.9 | 5,712.9 | + 465.0 | 6,200.0 | |||||||||||||||||||||
Business Profitø1 | 336.9 | 158.0 | 178.9 | ø | 4 + 20.9 | 288.7 | ø | 5 + 48.2 | 330.0 | |||||||||||||||||||
[ R O S ] | [5.5%] | [5.4%] | [5.5%] | [+0.2%] | [5.1%] | [+0.4%] | [5.3%] | |||||||||||||||||||||
Operating profit onNon-Consolidated | 25.1 | 6.4 | + 18.7 | |||||||||||||||||||||||||
Additional line itemsø2 | - 71.8 | - 21.0 | - 50.7 | - 29.7 | ||||||||||||||||||||||||
Profit for the year attributable to owners of the parent | 251.1 | 117.0 | 134.1 | + 17.1 | 180.8 | 70.3 | 230.0 | |||||||||||||||||||||
<Earnings per share (Yen)> | <281.8> | <132.6> | <149.2> | <+16.7> | <204.9> | <+76.9> | <258.0> | |||||||||||||||||||||
[R O E] | [7.9%] | [6.0%] | [+1.9%] | |||||||||||||||||||||||||
E B I T D Aø3 | 745.5 | 358.0 | 387.5 | + 29.5 | 655.3 | + 90.2 | 750.0 | |||||||||||||||||||||
Interest-bearing debt | 2,369.2 | 2,157.7 | + 211.5 | |||||||||||||||||||||||||
D/E ratio | 0.73 | 0.69 | +0.04 |
Each figure on the consolidated financial result for 1st half and 2nd half of fiscal 2018 as well as fiscal 2017 is calculated based on International Financial Reporting Standards (IFRS), as the Company has disclosed the consolidated financial statements for the fiscal 2018 onwards based on IFRS.
(ø1) | Business Profit 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. |
(ø2) | Additional line items refer to the items that are not recurrent and are remotely related to operational activities, but have a material impact in terms of amount. |
(ø3) | Business Profit + Depreciation |
<Factors Influencing Performance>
(1) Nippon Steel Corporation
Consolidated crude steel output volume (10,000 tons) | 4,784 | 2,365 | 2,419 | + 54 | 4,702 | + 82 | Approx. 4,820 | |||||||||||||||||||||
Non-Consolidated crude steel output volume (10,000 tons)*1 | 4,100 | 2,050 | 2,050 | + 0 | 4,067 | + 33 | Approx. 4,130 | |||||||||||||||||||||
Steel materials shipment volume (10,000 tons)*1 | 3,797 | 1,856 | 1,941 | + 84 | 3,779 | + 18 | Approx. 3,810 | |||||||||||||||||||||
Steel materials price (¥1,000/ton)*1 | 89.9 | 88.7 | 91.2 | + 2.5 | 84.7 | + 5.3 | Approx. 89 | |||||||||||||||||||||
Exchange rate (¥/$) | 111 | 109 | 112 | + 3 | 111 | - 0 | Approx. 111 | |||||||||||||||||||||
*1 Including Nippon Steel & Sumikin Koutetsu Wakayama Corporation in FY2017 |
| |||||||||||||||||||||||||||
(2) All Japan |
| |||||||||||||||||||||||||||
Crude steel output volume (10,000 tons) | 10,289 | 5,222 | 5,067 | - 155 | 10,484 | - 195 | Approx. 10,423 | |||||||||||||||||||||
Steel consumption (10,000 tons)*2 | 6,290 | 3,088 | 3,202 | + 114 | 6,289 | + 2 | 6,320 | |||||||||||||||||||||
(In manufacturing industries) | (4,069) | (1,993) | (2,077) | (+ 84) | (4,040) | (+ 29) | (4,071) | |||||||||||||||||||||
<% of manufacturing> | <64.7%> | <64.5%> | <64.8%> | <+0.3%> | <64.2%> | <+0.4%> | <64.4%> | |||||||||||||||||||||
Plain carbon steel consumption | 4,967 | 2,431 | 2,536 | + 105 | 4,974 | - 7 | 4,996 | |||||||||||||||||||||
In construction | 2,141 | 1,056 | 1,085 | + 29 | 2,167 | - 26 | 2,167 | |||||||||||||||||||||
In manufacturing | 2,826 | 1,375 | 1,451 | + 76 | 2,808 | + 19 | 2,829 | |||||||||||||||||||||
Specialty steel consumption | 1,323 | 657 | 666 | + 9 | 1,314 | + 9 | 1,324 | |||||||||||||||||||||
Inventory volume (10,000 tons) | 591 | *3 | 623 | 591 | - 32 | 583 | + 8 | |||||||||||||||||||||
Rolled sheets (10,000 tons) | 446 | *3 | 440 | 446 | + 7 | 421 | + 25 | |||||||||||||||||||||
*2 The Company estimates | ||||||||||||||||||||||||||||
*3 preliminary figures |
Table of Contents
<Segment Information> | ||||||||||||||||||||||||||||
(Billions of Yen) | ||||||||||||||||||||||||||||
Revenue | 6,177.9 | 2,940.0 | 3,237.9 | + 297.9 | 5,712.9 | + 465.0 | 6,200.0 | |||||||||||||||||||||
Steelmaking and Steel Fabrication | 5,454.5 | 2,590.0 | 2,864.5 | + 274.5 | 5,017.2 | + 437.3 | 5,500.0 | |||||||||||||||||||||
Engineering and Construction | 356.7 | 161.0 | 195.7 | + 34.7 | 294.2 | + 62.5 | 360.0 | |||||||||||||||||||||
Chemicals and Materials | 247.0 | 126.0 | 121.0 | - 5.0 | 237.8 | + 9.2 | 250.0 | |||||||||||||||||||||
System Solutions | 267.5 | 125.0 | 142.5 | + 17.5 | 244.2 | + 23.3 | 258.0 | |||||||||||||||||||||
Adjustment*4 | (147.8 | ) | (62.0 | ) | (85.8 | ) | - 23.8 | (80.5 | ) | - 67.3 | (168.0 | ) | ||||||||||||||||
Business Profit | 336.9 | 158.0 | 178.9 | + 20.9 | 288.7 | + 48.2 | 330.0 | |||||||||||||||||||||
Steelmaking and Steel Fabrication | 274.6 | 132.0 | 142.6 | + 10.6 | 245.7 | + 28.9 | 280.0 | |||||||||||||||||||||
Engineering and Construction | 9.4 | 3.0 | 6.4 | + 3.4 | 9.1 | + 0.3 | 8.5 | |||||||||||||||||||||
Chemicals and Materials | 25.0 | 13.0 | 12.0 | - 1.0 | 17.3 | + 7.7 | 22.0 | |||||||||||||||||||||
System Solutions | 26.5 | 11.5 | 15.0 | + 3.5 | 23.2 | + 3.3 | 24.0 | |||||||||||||||||||||
Adjustment*4 | 1.1 | (1.5 | ) | 2.6 | + 4.1 | (6.8 | ) | + 7.9 | (4.5 | ) |
*4 | Including the amount of adjustment for IFRS |
ø2 Additional line items
(Billions of Yen) | ||||||||||||||
2018FY | 1st half | 2nd half | ||||||||||||
Additional line items Total | p 71.8 | p 21.0 | p 50.7 | |||||||||||
Losses on natural disaster | p 22.3 | p 21.0 | p 1.3 | Typhoon and heavy rainfall | ||||||||||
Losses from reorganization | p 49.4 | — | p 49.4 | Impairment loss, loss on business withdrawal, loss on inactive facilities and others |
(ø4, 5) Analysis in Business Profit (Billions of Yen) | 1st half Þ2nd half change | 2016FY Þ2017FY change | Change | |||||||||
Change in Business Profit | +21.0 | +48.0 | +7.0 | |||||||||
1. Ferrous materials business | +11.0 | + 29.0 | -5.0 | |||||||||
|
|
|
|
| ||||||||
① Manufacturing shipment volume | +3.0 | +7.0 | -9.0 | |||||||||
② Selling prices and production mix | +17.0 | +179.0 | } | ~ | ||||||||
③ Raw materials prices (including carry-over of raw materials) | -26.0 | -110.0 | ||||||||||
④ Cost improvement | ~ | +44.0 | ~ | |||||||||
⑤ Inventory evaluation impact | -17.0 | -24.0 | +3.0 | |||||||||
⑥ Group companies (including raw materials interests and inventory evaluation impact) | +5.0 | -10.0 | +8.0 | |||||||||
⑦ FOREX | -9.0 | +9.0 | ~ | |||||||||
⑧ Loss on disaster | +19.0 | -35.0 | ~ | |||||||||
⑨ Other | +19.0 | -31.0 | -7.0 | |||||||||
2.Non-ferrous materials business | +6.0 | +11.0 | +6.0 | |||||||||
|
|
|
|
| ||||||||
3.Adjustments | +4.0 | +8.0 | +6.0 | |||||||||
|
|
|
|
|
[Dividends]
As announced on February 6, 2019, the Company plans to request the approval of the General Meeting of Shareholders to distribute ayear-end dividend payment of ¥40 per share in accordance with the basic profit distribution policy previously described. This would bring the full-year dividend distribution amount to ¥80 per share, representing a consolidated payout ratio of 28.5% (IFRS basis) for fiscal 2018.
[Outlook for Operations in Fiscal 2019]
The Company is unable at this time to establish reasonably accurate earnings estimates for fiscal 2019. This is due to ongoing initiatives to secure appropriate sales prices to maintain continuity in supply, and the fact that the Company is under negotiation with customers regarding possible improvement of steel products, in light of the impacts of increased costs, stemming from a rise in prices of primary raw materials as well as rises in costs of commodity materials, other materials procurement, and distribution. the Company will disclose earnings forecasts when reasonable estimates become possible.
(Continued on the following page)
Table of Contents
Table of Contents
Nippon Steel Corporation (5401)
May 9, 2019
Nippon Steel 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 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 | 24.97 | 50.67 | 102.89 |
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) | |||||||||||||||||
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. | 2018 | 5.73 | (151.5 | ) | 4.17 | 0.187 | ||||||||||||||
Jan. | 2019 | 5.98 | (154.4 | ) | 4.40 | 0.195 | ||||||||||||||
Feb. | 2019 | 5.93 | (152.5 | ) | 4.41 | 0.208 | ||||||||||||||
Mar.*3 | 2019 | 5.91 | (139.5 | ) | 4.46 | 0.219 |
*1 | Hot-rolled, cold-rolled and coated sheets |
*2 | Inventories of distributors dealing withH-flange beams manufactured by Nippon Steel Corporation |
*3 | Preliminary report |
- 1 -
Table of Contents
Nippon Steel Corporation (5401)
May 9, 2019
Nippon Steel Corporation
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 | 10.13 | 20.37 | 40.86 |
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 | 12.06 | 24.19 | 47.84 |
(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 | 10.22 | 20.50 | 41.00 |
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 | 9.48 | 19.41 | 37.97 |
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 | 90.9 | 91.2 | 89.9 |
Weighted average of the Company and Nippon Steel & Sumikin Koutetsu Wakayama Corporation*1
- 2 -
Table of Contents
Nippon Steel Corporation (5401)
May 9, 2019
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 | 37 | 39 | 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 | 110 | 112 | 111 |
9. Amount of Capital Expenditure and Depreciation
(Consolidated basis)
(billions of yen) | ||||||||||||||||||
Capital Expenditure | Depreciation | |||||||||||||||||
2017FY | 411.9 | 340.7 | ||||||||||||||||
2018FY*2 | 440.8 | 408.6 |
*1 | Nippon Steel & Sumikin Koutetsu Wakayama Corporation was merged into Nippon Steel Corporation on April 1, 2018. |
*2 | included for impacts of transition to IFRS and other impacts |
- 3 -