The value creation process and Nippon Steel’s
Inputs1

Global manufacturing
bases

2

Efficient use ofresources and energy
P.79-80

P.63-64

4

Human resources anddiversity & inclusion

approx.

66 mn tons/yr

Mother mills in Japan – a source oftechnological prowess

Global production
capacity

approx.

80 mn tons/yr

Tangible fixed asset¥3.0 tn

Long-accumulated operational and equipment
technology under the large blast furnace and seaside
integrated steelworks model
Technology in high-grade steel products developed
while responding to customers’ advanced needs

56.41mn tons/yr
25.74mn tons/yr
approx.700 mn m /yr
3R&D expenses
R&D staff (non-consol.)/JapanPatents(non-consol.)/Overseas¥66.4 bn/yr

800
approx.14,000
approx.16,000
approx.

Number of employees (consol.)(non-consol.)

P.81-86

43

5

Cash flow and balance
sheet management
P.35-39
Collaboration withcommunities andsociety
P.58, 87-88

approx.

¥2.6 tn

Equity attributable toowners of the parent

approx.

¥3.4 tn

D/E ratio

approx.

0.59 times

Contribution to SDGs in society

Bars & wirerodsConstruction Pipes & tubes
Titaniumproducts
Railway, automotive
Stainlesssteel& machinery parts

Material
Design Method

Vehicles, Ships, Energy, Electric appliances, Containers,
Industrial machinery, Civil engineering, Construction

Decarbonization of steelmaking process
Development and practical implementation of the three
breakthrough technologies with the aim of realizing acarbon neutral production process by 2050

Carbon neutral steel
Contribution to CO2 emission reduction throughout the supply
chain of customers

Synergies between the steelmaking andthree other segments

Steel slag products, coal chemical products
SystemSolutions
BusinessEngineering &Construction
Business
Chemicals &Materials
Business

ECO SOLUTION
Overseas transfer of environmental, energy preservation
technologies

Minimal emissions
Curbing of CO2 emissions; 99% recycling of by-products
Air, water, soil contamination risk management

Nippon Steel’s strengths
P.05-06

Continual growth as a global leading
steelmaker, overcoming crises many

P.89-98

times.

P.71-88

strengths in terms of “technology,” “cost,”
and “being global,” such as Process
technology (incl. world top-class energyefficiency), High-grade steel productInvestment for further growthEnhancement of corporate value

Technology Products and solutions that contribute to customers’ value creation
Cost competitiveness, enabled by our process technology andoperational technology
Global expansion in response to Japanese customers’
Being global overseas expansion and local demand

CostTechnology Cost Being global
Global top-level R&D resources as aP.63
steelmaker
Practical use of advanced technology by
R&D centers and steelworks research
P.56
divisions
Joint development with customers based on
P.54
long relationships of trust
Rich product portfolio

P.47

The world’s top-class energy efficiency

P.80

Decarbonizing technology development for
P26
the steelmaking process

44
Creation of social value
Jobs for employees and growth in community
Safe, reliable living
Energy preservation, climate action, recycle-oriented society
Disaster prevention and reduction, National ResilienceInfrastructure to build in emerging countries and to rebuild indeveloped countries
Products and technological solutions in growth areas
Education for employees and communities

Fiscal 2021 operating results

P.40-42

Established a profit structure that ensures a business profit of¥600 billion excluding one-off factors regardless of theexternal environment
Achieved a record-high profit close to ¥1 trillion (690 billion
excluding one-off factors) despite the worse external
environment than in fiscal 2014 when the previous record-highprofit was achieved

Risks, opportunities, and strategies
Steel supply/demand environment

P.11-34

Climate change

The top-runner approach in many steelworks P.56

technology, Global production framework,

Large blast furnace operating technology

P.56

Four-segment structure (incl. theStable, mass production technology ofhigh-grade steel

P.56

steelmaking business)

Synergy with the non-steel segments

P.62

Global production framework

P.57

Alliances with some global leading
steelmakers

P.58

Presence in the growing Asian market

P.54

High domestic shares; No. 4 in the world inproduction volume

P.54

our domestic steel business and strengthening our group’s
1 Rebuilding
management

2 Promoting a global strategy to deepen and expand our overseas business3 Taking on the challenge of zero-carbon steel
4 Promoting digital transformation strategies

Financial information

Financial information

Safety, environment, disaster prevention Quality Production Securingand fostering personnel Harmony with local communities and society
Corporate value enhancement and profit distribution
Thorough implementation of compliance

Established a business model with

Securing sustainable profit
Profit distribution

Corporate governanceCorporate governanceIn response to the delegation of responsibilities by and trust of all
stakeholders, Nippon Steel has established a corporate governancestructure appropriate for the Group’s business, for its sound and sustainablegrowth, and improvement of its corporate value in the mid- to long-term.
Nippon Steel has made a transition to a “Company with an Audit &Supervisory Committee” to enhance the supervisory function and toaccelerate speed in decision making, responding well to greater, more
speedy changes in the business environment.

Creation of sustainable corporate value andprofit distribution

Materiality of
Sustainability Issues

Materiality of
Sustainability Issues

History of ourdevelopment

Creation of economic value

Non-steel business products and services
Environment and energy, urban infrastructure
Steelmaking plant
Chemicals, Functional materials, composite material
IT consulting, DX promotion, IT outsourcing, modernization

Products using by-products

Steelmaking
Segment

P.03

Materiality of sustainability issues

PlatesECO PRODUCTSTM
Provision of high-performance steel materials and solutions that
contribute to CO2 emissions reduction of society

Coexistence with communities
Relationship of trust and cooperation
with customers
Alliances with major steelmakers

Nippon Steel Corporation Group will pursue world-leading technologies andmanufacturing capabilities, and contribute to society by providing excellent
products and services.

Corporate GovernanceFlat products

Realization of a carbon neutral society

Business modelBusiness model

Corporate Philosophy

Interest-bearing debt

Wealth of steel products and solution
proposals for diverse applications

Fiscal 2021
operating results

Fiscal 2021
operating results

6106,528
28,708Global production system
Support Japanese customers’ overseas
expansion and meet local growing demand,
based on the strengths of mother mills in Japan

Outcomes
P.47-52

Our roadmap to
the future

Our roadmap to
the future

3R&D Activities

Outputs
P.53-64

Global crude steel
production capacity

Iron ore
Coking coal
Industrial water

strengths

Introduction

Introduction

P.56-60

Business Activities

NIPPON STEEL CORPORATION

Integrated report 2022

Business model