Flash Report
Consolidated Basis
Results for the First Quarter of Fiscal 2020
(April 1, 2020―June 30, 2020)＜under IFRS＞
August 4, 2020
Nippon Steel Corporation
Tokyo, Nagoya, Sapporo, Fukuoka stock exchanges
5401
https://www.nipponsteel.com/en/index.html
Eiji Hashimoto, Representative Director and President
Shinnosuke Arita, General Manager, Public Relations Center+81-3-6867-2135, 2146, 2977, 3419
August 7, 2020
Yes
Yes (for investment analysts)

Company name:
Stock listing:Code number:
URL:
Representative:
Contact:
Telephone:
Scheduled date to submit Securities Report:
Scheduled date to pay dividends:
Preparation of supplemental explanatory materials:
Holding of quarterly financial results meeting:（All amounts have been truncated to the nearest millions of Japanese yen.）

1. Consolidated Operating Results and Financial Position through the First Quarter of Fiscal 2020
(April 1, 2020―June 30, 2020)(1) Consolidated Operating Results (Accumulated)（Percentage figures are changes from the same period of the previous fiscal year.）
Revenue

Business profit (*)

First quarter of Fiscal 2020

Millions ofyen
1,131,604(25.7)

Millions ofyen(27,510)First quarter of Fiscal 2019

1,522,479

4.3

60,600%Operating profit―

Millions ofyen(27,510)(33.1)

60,600%

Profit attributable toowners of the parent

Total comprehensive
incomeMillions ofyen%Millions ofyenProfit before
income taxes―

Millions ofyen(32,577)(33.1)

56,241%

Profit―Millions ofyen(41,422)(34.8)

38,904%

Basic earnings
per share

Diluted earnings
per share

%

Yen

Yen

First quarter of Fiscal 2020

(42,071)―(91,911)―(45.69)―First quarter of Fiscal 201933,325(61.0)

28,006(35.7)

36.20

―

%
―
(56.8)(*)Business Profit on Consolidated Statements of Profit or Loss indicates the results of sustainable business activities, and is an importantmeasure 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 Share of profit in investments
accounted for using the equity method and Other operating income. Other operating income and expenses are 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 toowners of the parent

Ratio of total equity
attributable to owners of theparent to total assets

Millions of yen

Millions of yen

Millions of yen%

First quarter of Fiscal 2020

7,361,501

2,902,699

2,552,968

34.7

Fiscal 2019

7,444,965

2,996,631

2,641,618

35.5

2. Dividends
Dividends per share
End of first quarterEnd of second quarterEnd of third quarterEnd of fiscal year

Fiscal year

Yen

Yen

Yen

Yen

Yen

Fiscal 2019

―

10.00

―

0.00

10.00

Fiscal 2020

―
0.00

―

―

―

Fiscal 2020 (Forecasts)

Notes: Whether the dividends forecasts have been revised: Yes

3. Consolidated Financial Forecasts for Fiscal 2020 (April 1, 2020―March 31, 2021)
RevenueFirst half of Fiscal 2020
Fiscal 2020

（Percentage figures are changes from the same period of the previous fiscal year.）
Profit attributable to
Basic earnings per shareowners of the parent
Millions of yen%
Millions of yen%
Yen
Business profit

Millions of yen%

2,200,000(27.8)(150,000)―(200,000)―(217.0)――(120,000)

―

―

―

―

Notes: 1. Whether the consolidated financial forecasts for fiscal 2020 under review have been revised: Yes* Notes(1) Changes in significant subsidiaries during the period: None
(2) Changes in accounting policies and changes in accounting estimates(a) Changes in accounting policies required by IFRS: None(b) Changes other than those in (a) above: None(c) Changes in accounting estimates: Yes
Note: For further details, please refer to page 7, “Quarterly Condensed Consolidated Financial Statements and Major Notes (4)Notes to the Quarterly Condensed Consolidated Financial Statements (Changes in Accounting Estimates).”(3) Number of shares outstanding (common shares)(a) Number of shares outstanding at the end of the period (including treasury stock)
First quarter of Fiscal 2020
950,321,402 sharesFiscal 2019
950,321,402 shares(b) Number of treasury stock at the end of the period
First quarter of Fiscal 2020
29,641,883 sharesFiscal 2019
29,638,468 shares(c) Weighted average number of shares outstanding
First quarter of Fiscal 2020
920,681,631 sharesFirst quarter of Fiscal 2019
920,440,643 shares* This quarterly flash report is not subject to quarterly review procedures.
* 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 thedate on which this document is made public. The Company’s actual results may differ substantially from such statements due to various
risks and uncertainties.

Nippon Steel Corporation (5401)
The First Quarter of Fiscal 2020

Index of Attached Documents
Quarterly Condensed Consolidated Financial Statements and Major Notes....................................................................2(1) Quarterly Condensed Consolidated Statements of Financial Position ....................................................................2(2) Quarterly Condensed Consolidated Statements of Profit or Loss andQuarterly Condensed Consolidated Statements of Comprehensive Income or Loss ..............................................4(3) Quarterly Condensed Consolidated Statements of Changes in Equity ....................................................................5(4) Notes to the Quarterly Condensed Consolidated Financial Statements ..................................................................7(Going Concern Assumption) ..............................................................................................................................7(Changes in Accounting Estimates) .....................................................................................................................7

1

Nippon Steel Corporation (5401)
The First Quarter of Fiscal 2020

Quarterly Condensed Consolidated Financial Statements and Major Notes(1) Quarterly Condensed Consolidated Statements of Financial Position(Millions of Yen)
March 31, 2020

ASSETS
Current assets :Cash and cash equivalents
Trade and other receivables
Inventories
Other financial assets
Other current assets

June 30, 2020

289,459
826,596
1,532,181
17,340
119,396

390,616
669,953
1,508,352
20,868109,550

2,784,974

2,699,340

2,812,542
93,66345,486
96,677878,271
481,11758,643
186,457
7,132

2,824,549
97,90344,934
91,616854,327
493,302
71,160177,418
6,948

Total non-current assets

4,659,990

4,662,160

Total assets

7,444,965

7,361,501

Total current assets
Non-current assets :Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Investments accounted for using the equity method
Other financial assets
Defined benefit assets
Deferred tax assets
Other non-current assets2

Nippon Steel Corporation (5401)
The First Quarter of Fiscal 2020

(Millions of Yen)
March 31, 2020

LIABILITIES

June 30, 2020

Current liabilities :Trade and other payables
Bonds, borrowings and lease liabilities
Other financial liabilities
Income taxes payable
Other current liabilities

1,449,801
376,900
2,189
27,32338,9781,211,967
509,274
3,077
22,392
47,836

Total current liabilities

1,895,192

1,794,547

Non-current liabilities :Bonds, borrowings and lease liabilities
Other financial liabilities
Defined benefit liabilities
Deferred tax liabilities
Other non-current liabilities

2,111,841
4,621
236,758
27,765
172,1542,224,417
4,953
228,663
30,489
175,729

Total non-current liabilities

2,553,141

2,664,254

Total liabilities

4,448,333

4,458,802

419,524
394,404
1,870,948(58,505)
15,245419,524
396,340
1,849,083(58,508)(53,471)

2,641,618

2,552,968

355,013349,731

Total equity

2,996,631

2,902,699

Total liabilities and equity

7,444,965

7,361,501

EQUITY
Common stock
Capital surplus
Retained earnings
Treasury stock
Other components of equity
Total equity attributable to owners of the parent
Non-controlling interests3

Nippon Steel Corporation (5401)
The First Quarter of Fiscal 2020

(2) Quarterly Condensed Consolidated Statements of Profit or Loss andQuarterly Condensed Consolidated Statements of Comprehensive Income or Loss
Quarterly Condensed Consolidated Statements of Profit or Loss

(Millions of Yen)First quarter of
Fiscal 2020

First quarter of
Fiscal 2019
Revenue
Cost of sales
Gross profit

1,522,479(1,349,543)
172,935

1,131,604(1,040,808)
90,796(148,725)
17,28732,288(13,185)
60,60060,600(121,386)
14,74813,243(24,912)(27,510)(27,510)

Finance income
Finance costs
Profit(loss) before income taxes

1,513(5,872)
56,241971(6,038)(32,577)

Income tax expense
Profit(loss)(17,337)
38,904(8,844)(41,422)

Profit(loss) attributable to :Owners of the parent
Non-controlling interests

33,325
5,578(42,071)
648

Earnings(loss) per share
Basic earnings(loss) per share (Yen)

36.20(45.69)Quarterly Condensed Consolidated Statements of Comprehensive Income or Loss
First quarter of
Fiscal 2019
Profit(loss)
38,904
Other comprehensive income
Items that cannot be reclassified to profit or loss
Changes in fair value of financial assets measured at fair value(8,713)through other comprehensive income
Remeasurements of defined benefit plans
2,811
Share of other comprehensive income of investments accounted(1,398)for using the equity method
Subtotal(7,300)(Millions of Yen)First quarter of
Fiscal 2020
(41,422)

Selling, general and administrative expenses
Share of profit in investments accounted for using the equity method
Other operating income
Other operating expenses
Business profit(loss)
Operating profit(loss)

Items that might be reclassified to profit or loss
Changes in fair value of cash flow hedges
Foreign exchange differences on translation of foreign operations
Share of other comprehensive income of investments accounted
for using the equity method
Subtotal
Total other comprehensive income, net of tax
Total comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interests

415,483
10,543
6,079
32,107(3,471)(481)(1,456)(41,033)

355(40,107)(3,596)(82,596)(10,897)
28,006(50,489)(91,911)

21,9796,026(90,583)(1,328)

Nippon Steel Corporation (5401)
The First Quarter of Fiscal 2020

(3) Quarterly Condensed Consolidated Statements of Changes in Equity
First quarter of Fiscal 2019

(Millions of Yen)
Equity attributable to owners of the parent

Balance as of March 31, 2019

CommonCapitalRetainedstock

surplusearnings

419,524

393,917

Other components of equity
Changes in fairvalue of financial
Treasury
assets measured at Remeasurements offair value throughdefined benefit
stock
other
plans
comprehensive
income(58,831)
248,020―2,300,175

Changes of the year
Comprehensive income
Profit(loss)

33,325

Other comprehensive income
Total comprehensive income

―

―

―

33,325(11,008)

3,083(11,008)

3,083(3,329)(3,083)

Transactions with owners and others
Cash dividends(36,880)

Purchases of treasury stock(11)

Disposals of treasury stock(10)

Changes in ownership interests in subsidiaries

40(2,169)Transfer from other components of equity
to retained earnings

6,412

Changes in scope of consolidation
Subtotal
Balance as of June 30, 2019

(228)
―

(2,180)(30,468)(199)(3,329)(3,083)

419,524

391,737

2,303,032(59,030)

233,682―

Equity attributable to owners of the parent
Other components of equity

Changes in fairvalue of cash
flow hedges

Foreignexchangedifferences ontranslation offoreign
operations(4,433)(67,585)

176,000

Other comprehensive income(3,037)(382)

Total comprehensive income(3,037)(382)

Balance as of March 31, 2019

Total equity
attributable toowners of theparentTotal

Non-controllinginterests

Total equity

3,230,788

376,579

3,607,367―

33,325

5,578

38,904(11,345)(11,345)448(10,897)(11,345)

21,9796,026

28,006

Cash dividends―(36,880)(4,656)(41,537)

Purchases of treasury stock

―

(11)

Disposals of treasury stock―

29

Changes in ownership interests in subsidiaries―(2,169)Changes of the year
Comprehensive income
Profit(loss)

Transactions with owners and others

Transfer from other components of equity
to retained earnings
Changes in scope of consolidation
Subtotal
Balance as of June 30, 2019

(6,412)

―

―

(228)

(11)
29
2,117

(52)

(326)

(554)

―

―

―

(6,412)(39,260)(2,865)(42,126)(7,471)(67,968)

158,242

3,213,507

379,741

3,593,248

5

Nippon Steel Corporation (5401)
The First Quarter of Fiscal 2020

First quarter of Fiscal 2020

(Millions of Yen)
Equity attributable to owners of the parent

Balance as of March 31, 2020

CommonCapitalRetainedstock

surplusearnings

419,524

394,404

Other components of equity
Changes in fairvalue of financial
Treasury
assets measured at Remeasurements offair value throughdefined benefit
stock
other
plans
comprehensive
income(58,505)
111,924―

1,870,948

Changes of the year
Comprehensive income
Profit(loss)(42,071)

Other comprehensive income
Total comprehensive income

―

―

―

(42,071)

15,272

14,045

15,272

14,045(6,160)(14,045)

Transactions with owners and others
Cash dividends
Purchases of treasury stock(4)

Disposals of treasury stock(0)

Changes in ownership interests in subsidiaries

1

1,936

Transfer from other components of equity
to retained earnings

20,205

Changes in scope of consolidation
Subtotal
Balance as of June 30, 2020

―

1,935

20,205(2)(6,160)(14,045)419,524

396,340

1,849,083(58,508)

121,036―

Equity attributable to owners of the parent
Other components of equity

Changes in fairvalue of cash
flow hedges

Foreignexchangedifferences ontranslation offoreign
operations(4,821)(91,857)

15,2452,641,618―

Other comprehensive income(2,792)(75,037)(48,511)

Total comprehensive income(2,792)(75,037)(48,511)

Balance as of March 31, 2020

Total equity
attributable toowners of theparentTotal

Non-controllinginterests

Total equity

355,0132,996,631(42,071)648(41,422)(48,511)(1,977)(50,489)(90,583)(1,328)(91,911)(3,816)(3,816)

Changes of the year
Comprehensive income
Profit(loss)

Transactions with owners and others
Cash dividends――

Purchases of treasury stock―(4)

Disposals of treasury stock―0

Changes in ownership interests in subsidiaries

―

1,936

(20,205)―――

Transfer from other components of equity
to retained earnings
Changes in scope of consolidation
Subtotal
Balance as of June 30, 2020

(4)
0
(131)

1,805

(6)

(6)

―

―

―

(20,205)

1,933(3,953)(2,020)(7,613)(166,894)(53,471)2,552,968

349,7312,902,699

6

Nippon Steel Corporation (5401)
The First Quarter of Fiscal 2020

（4）Notes to the Quarterly Condensed Consolidated Financial Statements（Going Concern Assumption）
None（Changes in Accounting Estimates）

Effective from the beginning of the first quarter of fiscal 2020, Nippon Steel changed the depreciation
method for property, plant and equipment from the declining-balance to the straight-line method.
The Company's domestic steelworks have been operating for about 50 years, and their workforce isexperiencing a transition to the next generation. In the midst of this trend, the Company is working torebuild its "strength in manufacturing" and this includes the prevention of facility troubles. The Company
also strives to rebuild a profit base that can be sustainable as a business. To achieve that, the Company
takes up major structural reforms that can be described as the “second foundation stage” by promoting
manufacturing infrastructure development including the refurbishing of core facilities. In addition, theCompany is implementing thorough preventive and planned maintenance to prevent operational andfacility troubles from taking place and has been striving to maximize the use of current production
capacity to ensure stable production volume and reduced cost. The Company’s future plans for facilities
stipulate large-scale investment projects such as refurbishment of coke ovens and relining of blast
furnaces. The Company expects that large-scale investment for aging facilities may increase andrepresent a larger portion of the total capital investments. Accordingly, the Company considers that thestraight-line method, which equalizes the annual amount of depreciation cost over the useful life, is morein line with the actual situation of recent Nippon Steel compared to the declining-balance method.
With this change, compared to the previous method, depreciation expenses decreased by ¥15,412 million
and business profit, operating profit, and profit before income taxes increased by ¥8,374 million,
respectively, during the first quarter of fiscal 2020.

7