Flash Report
Consolidated Basis
Results for Fiscal 2023
(April 1, 2023―March 31, 2024)＜under IFRS＞
May 9, 2024
Company name:NIPPON STEEL CORPORATIONTokyo Stock Exchange / Nagoya Stock Exchange / Fukuoka Stock
Exchange / Sapporo Securities Exchange
5401
https://www.nipponsteel.com/en/index.html
Tadashi Imai, Representative Director, President and COO
Shinnosuke Arita, General Manager, Public Relations Center+81-3-6867-2135, 2146, 3419
June 21, 2024
June 24, 2024
June 21, 2024
Yes
Yes (for investment analysts)

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

1. Consolidated Operating Results, Financial Position and Cash-Flows for Fiscal 2023
(April 1, 2023―March 31, 2024)(1) Consolidated Operating Results（Percentage figures are changes from the same period of the previous fiscal year.）
Revenue

Business profit (*)

Operating profit(5.1)

Millionsof yen778,662(2.3)

883,646

Fiscal 2023

Millionsof yen8,868,097

11.2

Millionsof yen869,657

Fiscal 2022

7,975,586

17.1

916,456%

Total comprehensive
income for the year%

Profit before
income taxes

Profit for the year

Profit for the year
attributable toowners of the parent(20.4)

Millionsof yen549,372(20.8)

10.7

694,016

8.9(11.9)

Millionsof yen763,972(11.9)

Millionsof yen587,898

5.1

866,849

6.2

738,732

%

%

%

%

Basic earnings
per share

Diluted earnings
per share

Ratio of profit
to total equity
attributable toowners of theparentRatio of profit
before income
taxes to total
assetsRatio ofbusiness profit
to revenue

Ratio ofoperating profit
to revenue

Yen

Yen

%

%

%

%

Fiscal 2023

Millionsof yen810,831(12.5)

596.59527.96

12.3

7.5

9.8

8.8

Fiscal 2022

926,92013.5

753.66671.89

18.1

9.5

11.5

11.1

%

(For reference) Share of profit in investments accounted for using the equity method:

Fiscal 2023 ¥144,326 million
Fiscal 2022 ¥102,915 million(*)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, and Losses on disposal of fixed assets.

(2) Consolidated Financial Position
Total assets

Total equity

Total equity attributableto owners of the parent

Ratio of total equity
attributable to owners of
the parent to total assets

Total equity attributableto owners of the parent
per share

Millions of yen

Millions of yen

Millions of yen%

Yen

Fiscal 2023

10,714,627

5,355,878

4,777,727

44.6

5,187.32

Fiscal 2022

9,567,099

4,646,417

4,181,155

43.7

4,540.59(3) Consolidated Statements of Cash-Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of the year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Fiscal 2023

1,010,159(710,654)(543,945)

448,892

Fiscal 2022

661,274(366,580)(197,655)

670,410

2. Dividends
Dividends per share
Yen

End of second
quarter
Yen

Yen

Yen

Yen

Fiscal 2022

－

90.00

－

90.00

180.00Fiscal 2023

－

75.00

－

85.00

160.00Fiscal 2024 (Forecasts)

－

80.00

－

a80.00160.00End of first quarter

Cash dividends

End of third quarterEnd of fiscal year

Fiscal year

Ratio of cash dividends
to profit

Ratio of cash dividends
to total equity attributableto owners of the parent

Millions of yen%%

Fiscal 2022

165,948

23.9

4.3

Fiscal 2023

147,525

26.8

3.3

Fiscal 2024 (Forecasts)

49.1

3. Consolidated Financial Forecasts for Fiscal 2024 (April 1, 2024―March 31, 2025)（Percentage figures are changes from the same period of the previous fiscal year.）
Revenue
Millions of yen

Total equity attributable toowners of the parent

Business profit%

Millions of yen%

Millions of yen%

Basic earnings per share
Yen

The first half of fiscal 2024

4,400,000(0.3)

300,000(39.3)

180,000(40.0)

195.00Fiscal 2024

8,800,000(0.8)

650,000(25.3)

300,000(45.4)

326.00For further details, please refer to page 7, “1. Summary of Operating Results (2) Outlook for the Fiscal Year Ending March 31, 2025 (Fiscal 2024)”
and “Results and dividends of Fiscal 2023 (Year ended March 31, 2024).”* Notes(1) Changes in significant subsidiaries during the period: Yes
Number of newly consolidated: 1 Company name: NIPPON STEEL TRADING CORPORATION
Number of excluded from consolidation: 0(2) Changes in accounting policies and changes in accounting estimates(a) Changes in accounting policies required by IFRS: None(b) Changes in accounting policies other than those in (a) above: None(c) Changes in accounting estimates: None
(3) Number of shares outstanding (common shares)(a) Number of shares outstanding at the end of the period (including treasury stock)
Fiscal 2023
950,549,305 sharesFiscal 2022
950,321,402 shares(b) Number of treasury stock at the end of the period
Fiscal 2023
29,510,730 sharesFiscal 2022
29,481,839 shares(c) Weighted average number of shares outstanding
Fiscal 2023
920,840,121 sharesFiscal 2022
920,858,089 shares

(For Reference)
1. A Summary of Non-Consolidated Operating Results and Financial Position for Fiscal 2023
(April 1, 2023―March 31, 2024)(1) Non-Consolidated Operating Results（Percentage figures are changes from the same period of the previous fiscal year.）Net sales

Operating profit

Millions of yen%

Ordinary profit

Millions of yen%

Millions of yen

Profit for the year%

Millions of yen%

Fiscal 2023

4,876,550(2.0)

331,697

4.2

453,113(14.0)

324,235(35.6)

Fiscal 2022

4,973,537

13.9

318,399(21.1)

527,162(1.8)

503,643

28.1

Earnings per share

Diluted earnings
per share

Yen

Yen

Fiscal 2023

351.69311.27

Fiscal 2022

546.28487.07(2) Non-Consolidated Financial Position
Total assets

Net assets

Ratio ofshareholders’ equity
to total assets

Net assets per share

Millions of yen

Millions of yen%

Yen

Fiscal 2023

6,589,405

2,380,980

36.1

2,582.03

Fiscal 2022

6,280,924

2,135,393

34.0

2,316.22(For reference) Shareholders’ equity:

Fiscal 2023 ¥2,380,980 million
Fiscal 2022 ¥2,135,393 million

2. Non-Consolidated Financial Forecasts for Fiscal 2024 (April 1, 2024―March 31, 2025)（Percentage figures are changes from the same period of the previous fiscal year.）Net sales

Ordinary profit

Millions of yen
Fiscal 2024

4,800,000%(1.6)

Millions of yen
200,000

Profit for the year%

(55.9)

Millions of yen
50,000%(84.6)

Earnings per share
Yen
54.00

* This flash report is not subject to audit 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 the dateon which this document is made public. The Company’s actual results may differ substantially from such statements due to various risks anduncertainties.

NIPPON STEEL CORPORATION (5401)
Fiscal 2023

Index of Attached Documents
1. Summary of Operating Results ....................................................................................................................................2(1) Summary of Operating Results and Financial Position
for the Fiscal Year Ended March 31, 2024 (Fiscal 2023) .......................................................................................2(2) Outlook for the Fiscal Year Ending March 31, 2025 (Fiscal 2024) .........................................................................7
2. Basic Rationale for Selection of Accounting Standards ..............................................................................................8
3. Consolidated Financial Statements and Major Notes ..................................................................................................9(1) Consolidated Statements of Financial Position ........................................................................................................9(2) Consolidated Statements of Profit or Loss and Consolidated Statements of Comprehensive Income ...................11(3) Consolidated Statements of Changes in Equity......................................................................................................12(4) Consolidated Statements of Cash-Flows ................................................................................................................14(5) Notes to the Consolidated Financial Statements ....................................................................................................15(Going Concern Assumption) ............................................................................................................................15(Segment Information) ......................................................................................................................................15(Earnings per Share) ..........................................................................................................................................16(Significant Subsequent Events) .......................................................................................................................17

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NIPPON STEEL CORPORATION (5401)
Fiscal 2023

1. Summary of Operating Results(1) Summary of Operating Results and Financial Position for the Fiscal Year Ended March 31, 2024 (Fiscal
2023)(Overview of Conditions in Fiscal 2023)
In fiscal 2023, the global economy showed signs of a further slowdown due to factors such as progressive inflation
stemming from the situation in Ukraine and the effects of monetary tightening in Europe and the United States. The
Japanese economy recovered moderately, but domestic demand lacked strength.

Steel demand fell into an unprecedented dire level in the second half of fiscal 2023, which became further depressed
toward the end of the fiscal year, against the background of the sluggish economy in China and the deteriorating
economic sentiment in the United States and Europe. In addition, due to factors including India's continued spot
purchases of coal and China's continued high-level production despite sluggish economy and significant increase inexports, raw material prices have remained high while product prices have been sluggish in ASEAN and othercountries. These factors have led to the continued historically low level of the spread (price difference between raw
materials and steel products) in the overseas general spot market, and the decoupling of raw materials and products
has become more evident.
In response to this business environment, the Nippon Steel Group (“the Group”) implemented various measures
aimed at achieving the four pillars of its medium- to long-term management plan (formulated in March 2021):“Rebuilding the domestic steel business and strengthening the Group’s management,” “Promoting a global strategy todeepen and expand the overseas business,” “Taking on the challenge of carbon neutrality,” and “Promoting digitaltransformation strategies.”(Operating Results by Segment in Fiscal 2023)
The Group’s business segments strived to respond to their changing business environments and have applied theirutmost management effort. The operating results by business segment are as follows.
(Billions of yen)
Revenue
Fiscal 2023
Steelmaking and Steel Fabrication
Engineering and Construction
Chemicals and Materials
System Solutions
Total
Adjustments
Consolidated total

8,076.3
409.2
260.8
311.5
9,057.9(189.8)8,868.02

Business Profit
Fiscal 2022

Fiscal 2023

Fiscal 2022

7,245.5
352.2
274.5
292.5
8,164.8(189.2)
7,975.5

821.0
(1.3)
15.3
35.5
870.7
(1.0)
869.6

861.4
11.6
16.1
32.1
921.4
(4.9)
916.4

NIPPON STEEL CORPORATION (5401)
Fiscal 2023

[Steelmaking and Steel Fabrication]
Although the business environment remained extremely harsh, the Steelmaking and Steel Fabrication segment
continued to implement drastic profit restructuring measures. In addition, the segment strived to evolve toward having
a further vertically-integrated business structure that could achieve the Group’s future vision of ¥1 trillion in businessprofit. The segment has also built a foundation that is planned to enable it to record even higher profits regardless ofthe external environment. As a result, the segment recorded revenue of ¥8,076.3 billion (compared to ¥7,245.5 billion
in fiscal 2022) and a business profit of ¥821.0 billion (compared to ¥861.4 billion).

Specifically, the following efforts were made during fiscal 2023.

We are steadily implementing facility structural measures, with or without a short-term improvement in the businessenvironment. We have also aimed to establish an integrated business structure that encompasses everything from raw
materials to manufacturing and distribution, strengthen competitiveness across the entire supply chain, and create amore resilient business structure (a business structure with a robust profit base), one that contributes importantly
toward the achievement of carbon neutrality. During fiscal 2023, the Company made selective investments infacilities having competitive advantages. These investments included measures to improve the capacity and quality ofstrategic products, such as the next-generation hot-strip mill at the Nagoya Works, and electrical steel sheet facilities
at the Setouchi Works Hanshin Area (Sakai) and the Kyushu Works Yawata Area. Coupled with the shut-down ofless competitive facilities, we have made production facilities more advanced, streamlined, and efficient, promoted
the sophistication of product types, and optimized the scale of production capacity and fixed costs. In the raw
materials business, we have acquired a 20% interest in Elk Valley Resources, a Canadian coking coal company, as we
aim to ensure steady procurement of high-grade coking coal for steelmaking that contributes to promoting carbon
neutrality and to establish a profit structure that is less susceptible to the external environment. In addition, Nippon
Steel Trading Corporation was delisted and has become a subsidiary of Nippon Steel, and we have been working toenhance and raise efficiency of the Group’s trading company functions, to enhance the direct sales ability by making
an integrated use of our sales knowhow and our infrastructure, and to further increase sophistication of the supply
chain. We intend to continue evolving toward having a further vertically-integrated business structure.

Overseas, the Steelmaking and Steel Fabrication segment is working to ensure capturing of local demand andsecuring high integrated added-value by expanding integrated manufacturing bases in “markets with promising
growth in steel demand” and “markets where Nippon Steel’s technologies and products are highly appreciated.” In
India, where future market expansion and further development of domestic production are expected, we are
expanding capacity through several approaches: by acquisition of bases and construction of a new integrated
steelworks now being studied by ArcelorMittal Nippon Steel India Limited, among other measures. Moreover, wehave decided to acquire United States Steel Corporation in the United States. The United States is a country that has
the highest demand for high-grade steel, and where we can make use of our technological and product strengths. Thismeans for us to secure three key areas, which are adding the United States to India and our home market of ASEAN,

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NIPPON STEEL CORPORATION (5401)
Fiscal 2023

leading to the diversification of our global bases. We aim to continue improving profitability through expansion of
our integrated production system in these major overseas markets, thereby advancing toward the realization of 100
million tons in global crude steel capacity.

About our efforts to achieve carbon neutrality, we have implemented various measures to realize the Nippon SteelCarbon Neutral Vision 2050. In order to decarbonize our steelmaking processes, we are developing three
breakthrough technologies: for injection of hydrogen into blast furnaces, for 100% hydrogen use in the direct
reduction process, and for high-grade steel production in large-sized electric arc furnaces (EAFs). Our recent progressin technological development includes the Super COURSE50 development test at a pilot test furnace in the East
Nippon Works Kimitsu Area, which confirmed the effect of reducing CO2 emissions by 33%, the world’s highest
level for reduction. In addition, we started full-scale studies on shifting from the blast furnace steelmaking process to
the EAF process in the Kyushu Works Yawata Area and the Setouchi Works Hirohata Area as candidate sites. In
addition, NSCarbolexTM Neutral (a steel product that is certified to reduce CO2 emissions in the steelmaking process)and NSCarbolexTM Solution (a high-performance product and solution technology that contributes to reducing CO2
emissions in society) are the two products of value we provide for carbon neutralization, supporting our customers’international competitiveness. These efforts have led to a reaffirmation of the importance of the steel industry’s rolein decarbonization initiatives and the Green Innovation Fund has significantly increased the allocation of its fund to
the steel industry. We are therefore working to accelerate and move forward development and practicalimplementation in these areas. It deserves mention here that the Company’s climate change risk information based on
its CO2 emission reduction targets and the framework of the Task Force on Climate-related Financial Disclosures(TCFD) are disclosed in the Sustainability Report 2023, per https://www.nipponsteel.com/en/csr/report/.

As to DX strategy, we have promoted business and production process reforms that make full use of data and digitaltechnology. As an example of a specific initiative in fiscal 2023, we established and commenced operation of asystem that enables real-time acquisition of operating information for management of vessel allocation when shipping
raw materials by sea. We believe that this facilitates faster decision-making, and contributes to improve the efficiencyof the supply chain, from raw material procurement to transportation and production. The resultant improvement ofefficiency in operation and transportation will also help efforts on behalf of realization of a carbon-neutral society. A
second example of what we are doing is, in collaboration with NS Solutions Corporation, applying mathematicaloptimization technology in development of a steel output scheduling system for high-speed production planning in thesteelmaking process. Full-scale use of the system is now under way at the East Nippon Works Kimitsu Area. This has
enabled equal or greater plans, and faster plans, to be derived compared to those made by skilled technicians.
Planning time has been reduced by about 70% compared to conventional systems. Going forward, we plan to start
using the system at each steelworks, one by one, and promote the unification of production plans for the entire
company. We also continue to work on various DX measures in areas such as remote management, predictive
monitoring, and automation of operations and equipment maintenance using IoT and AI, as well as centralization andacceleration of performance management and integrated production planning.

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NIPPON STEEL CORPORATION (5401)
Fiscal 2023

[Engineering and Construction]
Nippon Steel Engineering Co., Ltd. increased overall sales year-on-year. Solid sales were posted in the business ofoffshore wind power plants, waste-to-energy facilities, and other components in the Environment and Energy sector
as well as in the business of construction work and seismic isolation devices in the Urban Infrastructure sector,
centering on large-scale logistics facilities while experienced a decrease in sales in the Steelmaking Plants sector. The
segment’s profits decreased year-on-year due to the impact of large losses caused by the breakdown of a crane of its
own marine workship and the surge in the prices of materials and fuel. For fiscal 2023 the Engineering andConstruction segment recorded revenue of ¥409.2 billion (compared to ¥352.2 billion in fiscal 2022) and businessloss of ¥1.3 billion (compared to business profit of ¥11.6 billion).

[Chemicals and Materials]
Nippon Steel Chemical & Material Co., Ltd. posted a year-on-year decrease in profits despite utmost efforts to reduce
costs and improve selling prices amid a severe business environment in which demand continued to be sluggish due
to soaring raw material and fuel prices worldwide and inventory adjustments for semiconductors and other products.
In the Coal Tar Chemicals business, sales of carbon black for tires were firm, but demand for needle coke used ingraphite electrodes, its main product, remained sluggish. In the Chemicals business, the benzene market remained
generally stable, but sales of styrene monomer decreased due to a delay in the recovery of demand for derivatives inJapan, and the continued expansion of new production facilities in China led to stagnate the styrene monomer market.
In the Functional Materials and Composite Materials business, recovery of production remained weak due to theimpact of the deterioration in the Chinese economy, and the prolonged sluggish demand for semiconductors as well as
end products such as smartphones and PCs. Among carbon fiber composite materials, the sales volume of carbon
fiber reinforced materials for civil engineering and construction, which are the main product responding to demandfor infrastructure upgrades, increased, and sales of carbon fiber continued to be strong, mainly in the sports and space
fields. The overall Chemicals and Materials segment recorded revenue of ¥260.8 billion (compared to ¥274.5 billion
in fiscal 2022) and business profit of ¥15.3 billion (compared to ¥16.1 billion).

[System Solutions]
In response to stepped-up corporate DX initiatives, NS Solutions Corporation is working to expand business bymaking corporate-wide efforts to satisfy the needs of DX at maximum while deepening relationships with customers.
As an example of its initiatives in fiscal 2023, NS Solutions jointly developed and commenced full-scale operation ofa production planning system that realizes operational reforms by applying mathematical optimization technology,
jointly with Nippon Steel. In addition, the company introduced a local 5G system to power plant premises, whichenables power companies to conduct efficient maintenance and inspection work, etc. through remote monitoring ofsites using video and audio links, and facilitates the transfer of technology. In addition, the company has provided
ConSeekTM, an integrated business management platform service for financial institutions to its customers, and has

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NIPPON STEEL CORPORATION (5401)
Fiscal 2023

launched a modernization project for mission-critical systems of insurance companies. As investments for growth, NS
Solutions formed business alliances with AI start-up companies and Nippon Steel Texeng Co., Ltd. in the field ofdigital manufacturing, and entered into an agreement to make Texeng Solutions Corporation (renamed to NS
Solutions BizTech Corporation) a group company. These developments were to enhance its ability to respond to
customers' DX needs. The System Solutions segment recorded revenue of ¥311.5 billion (compared to ¥292.5 billion
in fiscal 2022) and business profit of ¥35.5 billion (compared to ¥32.1 billion).
(Revenue and Profit)
For fiscal 2023, although the business environment remained extremely harsh, the Company strived to maximize
profit by continuing to implement measures such as to fundamentally improve profit structure. As a result, theCompany recorded consolidated revenue of ¥8,868.0 billion (compared to ¥ 7,975.5 billion in fiscal 2022), businessprofit of ¥869.6 billion (compared to ¥916.4 billion), and profit attributable to owners of the parent of ¥549.3 billion(compared to ¥694.0 billion).

(Assets, Liabilities, Equity, and Cash Flows)
Consolidated total assets as of March 31, 2024 were ¥10,714.6 billion, an increase of ¥1,147.5 billion from ¥9,567.0
billion as of March 31, 2023. The main factors contributing to the increase were business investments, such as Nippon
Steel Trading Corporation. becoming a subsidiary, resulting in an increase in trade and other receivables (¥525.5 billion),
an increase in inventories (¥190.6 billion), an increase in property, plant and equipment (¥196.7 billion), and an increase
in investments accounted for using the equity method (¥327.3 billion), among other factors.

Consolidated total liabilities as of March 31, 2024 were ¥5,358.7 billion, an increase of ¥438.0 billion from ¥4,920.6
billion as of March 31, 2023. Trade and other payables increased (¥298.5 billion) due to the aforementioned
consolidation of subsidiaries, deferred tax liabilities also increased (¥102.8 billion).

Consolidated total equity as of March 31, 2024 was ¥5,355.8 billion, an increase of ¥709.4 billion from ¥4,646.4 billion
as of March 31, 2023. This was primarily contributed by an increase from profit attributable to owners of the parent of¥549.3 billion, a decrease in dividend payment (¥152.1 billion), and an increase in the foreign exchange differences ontranslation of foreign operations (¥105.9 billion), and an increase in non-controlling interests resulting from theconsolidation of Nippon Steel Trading Corporation (¥112.8 billion), among other factors. As a result, total equity
attributable to owners of the parent as of March 31, 2023 amounted to ¥4,777.7 billion, and the ratio of interest-bearing
debt to total equity attributable to owners of the parent (D/E ratio) was 0.57 times (0.45 times after adjusting for equity
credit attributes of subordinated loans and subordinated bonds).

Cash flows from operating activities in fiscal 2023 amounted to an inflow of ¥1,010.1 billion (compared to an inflowof ¥661.2 billion in fiscal 2022). The main inflow factors were profit before income taxes of ¥763.9 billion, depreciation
and amortization (¥363.0 billion), and losses on reorganization (¥90.9 billion), while the outflow factors included

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NIPPON STEEL CORPORATION (5401)
Fiscal 2023

deduction adjustment for share of profit in investments accounted for using the equity method (¥144.3 billion), andincome taxes paid (¥126.5 billion).

Cash flows from investing activities amounted to an outflow of ¥710.6 billion (compared to an outflow of ¥366.5 billion
in fiscal 2022). The main outflow factors included purchases of property, plant and equipment and intangible assets(¥466.3 billion), purchases of investments in affiliates primarily investing in Elk Valley Resources, a Canadian coking
coal company (¥184.2 billion), and purchases of shares of subsidiaries resulting in change in scope of consolidation
primarily share acquisition of Nippon Steel Trading Corporation (¥108.1 billion)

As a result, free cash flow was an inflow of ¥299.5 billion (compared to an inflow of ¥294.6 billion in fiscal 2022).
Cash flows from financing activities amounted to an outflow of ¥543.9 billion (compared to an outflow of ¥197.6 billion
in fiscal 2022), largely due to an outflow from repayments of Interest-bearing debt (¥512.4 billion) and cash dividends
paid (¥152.1 billion). As a result of these cash flows, the cash and cash equivalents at the end of fiscal 2023 were ¥448.8
billion.

(Basic Policy on Profit Distribution and Fiscal 2023 Dividend)
The Company’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 suchfactors as capital requirements for investment and other activities aimed at raising corporate value and performanceprospects, while also considering the financial structure of the Company on both consolidated and non-consolidatedbases. 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 ofthe interim dividend is determined in consideration of the first-half performance results and forecasts for the full fiscal
year.

The Company paid a dividend of ¥75 per share at the end of the first half. Regarding the fiscal year-end dividend based
our policy of providing continuous, high-level shareholder returns, as disclosed at the third quarter results
announcement (February 7, 2024), management has decided to propose a year-end dividend of ¥85 per share (the annual
dividend will be ¥160 per share) at the General Meeting of Shareholders.

(2) Outlook for the Fiscal Year Ending March 31, 2025 (Fiscal 2024)(Outlook for Operating Performance in Fiscal 2024)
The unprecedented severe situation concerning global steel demand is likely to continue for the foreseeable future.
Recovery in actual demand is hard to predict at this point, and it is expected to take time for the market to recover.
There is also a risk that the decoupling between raw materials and products will continue for the time being.

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NIPPON STEEL CORPORATION (5401)
Fiscal 2023

Even in this situation where the business environment has become increasingly severe and is expected to remain sofor the time being, we will continue to implement the existing profit structure measures. At the same time, we will
steadily advance measures to evolve to a further vertically-integrated business structure, and to advance towardachieving the Group’s future vision of ¥1 trillion in business profit, and build a foundation that enables us to record
even higher profits regardless of the external environment. We will also make investments in forward-looking
initiatives to recruit and retain diverse talent.

For fiscal 2024, we forecast underlying business profit of ¥750 billion or more and business profit of ¥650 billion or
more. Profit attributable to owners of the parent is expected to be around ¥300 billion, due in part to a large loss on
business restructuring, the loss being related to the completion of the production facility structural measures. For
fiscal 2025, the final year of the ongoing medium- to long-term management plan, we will strive to hard to secure
underlying consolidated business profit of ¥900 billion or more by realizing the benefits from capital expenditures,notably sales expansion of high-grade steel products, and expanding overseas businesses including that of India, in
addition to the impacts of restructuring measures. Moreover, by acquiring United States Steel Corporation, we aim toachieve the Group’s future vision of ¥1 trillion in business profit at the earliest possible time.

(Outlook for Dividends for Fiscal 2024)
While profit attributable to owners of the parent is forecasted to stay at around ¥300 billion in fiscal 2024 and no
significant turnaround in the business environment is expected in fiscal 2025, we will strive hard in fiscal 2025 tosecure underlying consolidated business profit of ¥900 billion or more, and most losses from reorganization are
expected to be eliminated, thanks to the almost-secured effects of various measures including the restructuring
measures and capital expenditures. Based on these assumptions and our policy of providing continuous, high-level
shareholder returns, we plan to distribute a full-year dividend of ¥160 per share in fiscal 2024, maintaining the samelevel as in fiscal 2023.

With the aim of becoming “the best steelmaker with world-leading capabilities,” we are committed to steadily
implementing various measures aimed at achieving the four pillars of our medium- to long-term management plan:“Rebuilding the domestic steel business and strengthening the Group’s management,” “Promoting a global strategy todeepen and expand the overseas business,” “Taking on the challenge of carbon neutrality,” and “Promoting digitaltransformation strategies.”
2. Basic Rationale for Selection of Accounting Standards
The Group has applied the International Financial Reporting Standards (IFRS) to financial statements for purposes ofincreasing corporate value through enhancement of global business development and improving international
comparability of financial information in capital markets.

8

NIPPON STEEL CORPORATION (5401)
Fiscal 2023

3.Consolidated Financial Statements and Major Notes(1) Consolidated Statements of Financial Position(Millions of Yen)
March 31, 2023

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

March 31,2024

670,410
1,062,384
2,085,971
28,176
223,575

448,892
1,587,979
2,276,665
33,927
212,919

4,070,518

4,560,384

3,183,638
83,93565,062
157,444
1,210,542
528,794
124,628
136,349
6,185

3,380,436
100,601
70,207
177,853
1,537,936
675,942
127,579
75,893
7,791

Total non-current assets

5,496,581

6,154,242

Total assets

9,567,099

10,714,627

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 assets

9

NIPPON STEEL CORPORATION (5401)
Fiscal 2023

(Millions of Yen)
March 31, 2023

LIABILITIESMarch 31,2024

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

1,592,137
403,028
5,878
51,917
40,8391,890,718
541,495
7,036
80,26962,353

Total current liabilities

2,093,802

2,581,874

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

2,296,322
323
185,441
37,685
307,1052,170,148
146
116,309140,532
349,737

Total non-current liabilities

2,826,879

2,776,874

Total liabilities

4,920,682

5,358,748

419,524
399,366
3,079,144(58,054)341,173

419,799
398,914
3,525,585(58,149)
491,576

4,181,155

4,777,727

465,261

578,150

Total equity

4,646,417

5,355,878

Total liabilities and equity

9,567,099

10,714,627

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

10

NIPPON STEEL CORPORATION (5401)
Fiscal 2023

(2) Consolidated Statements of Profit or Loss andConsolidated Statements of Comprehensive Income
Consolidated Statements of Profit or Loss

(Millions of Yen)
Fiscal 2022

Revenue
Cost of sales
Gross profit

Fiscal 2023

7,975,586(6,682,028)
1,293,557

8,868,097(7,481,331)
1,386,765

Selling, general and administrative expenses
Share of profit in investments accounted for using the equity method
Other operating income
Other operating expenses
Business profit(579,411)
102,915
181,497(82,102)916,456(730,388)
144,326
178,085(109,131)
869,657

Losses on reorganization
Operating profit(32,810)883,646(90,995)
778,662

Finance income
Finance costs
Profit before income taxes

8,091(24,888)866,849

21,540(36,230)
763,972

Income tax expense
Profit for the year

(128,117)
738,732(176,074)
587,898

Profit for the year attributable to :Owners of the parent
Non-controlling interests

694,016
44,715549,372
38,526

Earnings per share
Basic earnings per share (Yen)
Diluted earnings per share (Yen)753.66671.89596.59527.96

Consolidated Statements of Comprehensive Income(Millions of Yen)
Fiscal 2022

Profit for the year
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
Remeasurements of defined benefit plans
Share of other comprehensive income of investments accounted
for using the equity method
Subtotal

Fiscal 2023

738,732

587,898

32,577125,783

16,567

17,570

1,355

9,179

50,500152,533(7,779)88,7681,570
81,716

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

56,700(12,886)

137,688

70,400Total other comprehensive income, net of tax
Total comprehensive income for the year

188,188926,920

222,933
810,831

Comprehensive income for the year attributable to:
Owners of the parent
Non-controlling interests

874,564
52,356748,961
61,87011

NIPPON STEEL CORPORATION (5401)
Fiscal 2023

(3) Consolidated Statements of Changes in Equity
Fiscal 2022

(Millions of Yen)
Equity attributable to owners of the parent
Other components of equity

Balance as of March 31, 2022

CommonCapitalRetained

Treasurystock

surplusearnings

stock

419,524

393,547

2,514,775

Changes in fairvalue of financial
assets measured at Remeasurements offair value throughdefined benefit
other
plans
comprehensive
income(57,977)

178,442―

38,476

14,28938,476

14,289(22,012)(14,289)

Changes of the year
Comprehensive income
Profit for the year

694,016

Other comprehensive income
Total comprehensive income

―

―

―

694,016

Transactions with owners and others
Conversion of convertible bonds
Cash dividends(165,950)

Purchases of treasury stock
Disposals of treasury stock

(69)
2

0

Changes in ownership interests in subsidiaries

5,818Transfer from other components of equity
to retained earnings

36,302

Changes in scope of consolidation
Subtotal
Balance as of March 31, 2023

(11)
―

5,819

(129,647)(77)(22,012)(14,289)

419,524

399,366

3,079,144(58,054)

194,905―

Equity attributable to owners of the parent
Other components of equity

Balance as of March 31, 2022

Changes in fairvalue of cash
flow hedges

Foreign exchange
differences ontranslation offoreign operations

58,852(40,366)

Total equity
attributable toowners of theparentTotal

Non-controllinginterests

Total equity

196,928

3,466,799

430,209

3,897,008―

694,016

44,715

738,732

Changes of the year
Comprehensive income
Profit for the year
Other comprehensive income

33,846

93,935

180,547

180,547

7,641

188,188

Total comprehensive income

33,846

93,935

180,547874,564

52,356926,920(10,235)(176,186)

Transactions with owners and others
Conversion of convertible bonds――

Cash dividends―(165,950)

Purchases of treasury stock

―

(69)

Disposals of treasury stock―

3

Changes in ownership interests in subsidiaries

―

5,818

(36,302)―

Transfer from other components of equity
to retained earnings

Balance as of March 31, 2023

(69)
3(7,346)(1,528)
―

―

(11)

278

266

―

―

(36,302)(160,208)(17,304)(177,512)

92,69953,568341,173

4,181,155

465,261

4,646,417

Changes in scope of consolidation
Subtotal―

12

NIPPON STEEL CORPORATION (5401)
Fiscal 2023

Fiscal 2023

(Millions of Yen)
Equity attributable to owners of the parent
Other components of equity

Balance as of March 31, 2023

CommonCapitalRetained

Treasurystock

surplusearnings

stock

419,524

399,366

3,079,144

Changes in fairvalue of financial
assets measured at Remeasurements offair value throughdefined benefit
other
plans
comprehensive
income(58,054)

194,905―

126,397

15,685

126,397

15,685(33,500)(15,685)

Changes of the year
Comprehensive income
Profit for the year

549,372

Other comprehensive income
Total comprehensive income

―

―

275

275

―

549,372

Transactions with owners and others
Conversion of convertible bonds
Cash dividends(152,117)

Purchases of treasury stock
Disposals of treasury stock

(84)
49

1

Changes in ownership interests in subsidiaries(729)

Transfer from other components of equity
to retained earnings

49,186

Changes in scope of consolidation
Subtotal
Balance as of March 31, 2024

(59)
275

(452)

(102,930)(94)(33,500)(15,685)

419,799

398,914

3,525,585(58,149)

287,802―

Equity attributable to owners of the parent
Other components of equity

Balance as of March 31, 2023

Changes in fairvalue of cash
flow hedges

Foreign exchange
differences ontranslation offoreign operations

92,69953,568

Total equity
attributable toowners of theparentTotal

Non-controllinginterests

Total equity

341,173

4,181,155

465,261

4,646,417―

549,372

38,526

587,898

Changes of the year
Comprehensive income
Profit for the year
Other comprehensive income(48,486)

105,993

199,589

199,589

23,344

222,933

Total comprehensive income(48,486)

105,993

199,589

748,961

61,870810,831(11,959)(164,076)

Transactions with owners and others
Conversion of convertible bonds―

550

Cash dividends―(152,117)

Purchases of treasury stock

―

(84)

Disposals of treasury stock―

51

Changes in ownership interests in subsidiaries

―

(729)

(49,186)―

Transfer from other components of equity
to retained earnings

Balance as of March 31, 2024

(84)
51
50

(679)
―

―

(59)

62,92862,868――(49,186)(152,389)

51,018(101,370)

44,212

159,561

491,576

4,777,727

578,150

5,355,878

Changes in scope of consolidation
Subtotal

550

13

NIPPON STEEL CORPORATION (5401)
Fiscal 2023

(4) Consolidated Statements of Cash-Flows(Millions of yen)
Fiscal 2022
Cash flows from operating activities :Profit before income taxes
Depreciation and amortization
Finance income
Finance costs
Share of profit in investments accounted for using the equity method
Losses on reorganization(Increase) decrease in trade and other receivables(Increase) decrease in inventories
Increase (decrease) in trade and other payables
Other, net
SubtotalInterest received
Dividends received
Interest paid
Income taxes paid
Net cash flows provided by operating activities
Cash flows from investing activities :Purchases of property, plant and equipment and intangible assets
Proceeds from sales of property, plant and equipment and intangible assets
Purchases of investment securities
Proceeds from sales of investment securities
Purchases of investments in affiliates
Proceeds from sales of investments in affiliates
Purchases of shares of subsidiaries resulting in change in scope of consolidation
Proceeds from sale of businesses
Loans to associates and others
Collection of loans from associates and others
Other, net
Net cash flows used in investing activities
Cash flows from financing activities :Increase (decrease) in short-term borrowings, net
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of bonds
Redemption of bonds
Purchases of treasury stock
Cash dividends paid
Dividends paid to non-controlling interests
Purchases of shares of subsidiaries that do not result in change in scope of consolidation
Other, net
Net cash flows provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year

14

Fiscal 2023

866,849
340,171(8,091)
24,888(102,915)
32,810(81,796)(309,525)
58,431(2,038)
818,783
7,588
70,911(21,575)(214,433)
661,274

763,972
363,002(21,540)
36,230(144,326)
90,99550,126
68,618(53,628)(73,798)
1,079,651
21,14066,459(30,565)(126,526)
1,010,159(470,018)
15,483(6,981)
88,698
―
5,231
(735)
―
(3,977)1,730
3,988(366,580)(466,345)
12,384(7,474)
20,982(184,232)
19,670(108,168)
1,300(4,262)
1,696
3,795(710,654)

27,240150,273(207,909)
50,000(20,000)(58)(165,950)(10,235)(1,843)(19,171)(197,655)
22,322
119,361
551,049
670,410(325,935)
85,218(211,736)―(60,000)(73)(152,117)(11,959)(2,960)135,618(543,945)
22,922(221,518)
670,410448,892

NIPPON STEEL CORPORATION (5401)
Fiscal 2023

(5) Notes to the Consolidated Financial Statements(Going Concern Assumption)
Not applicable(Segment Information)1) Summary of reportable segment
The Company engages in the Steelmaking and Steel Fabrication business and acts as the holding company of theGroup. The Group has four operating segments determined mainly based on products and services, 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 theoperations of each reportable segment:
Reportable segments
Steelmaking and Steel
Fabrication

Principal businesses
Manufacturing and sale of steel products

Engineering and Construction

Manufacturing and sale of industrial machinery, equipment and steel structures,construction projects under contract, waste processing and recycling, andsupplying electricity, gas, and heat

Chemicals and Materials

Manufacturing and sale of coal-based chemical products, petrochemicals,
electronic materials, materials and components for semiconductors andelectronic parts, carbon fiber and composite products, and products thatutilize technologies for metal processing

System Solutions

Computer systems engineering and consulting services; IT-enabled
outsourcing and other services

2) Information on the amounts of revenue and profit for reportable segments
Fiscal 2022 (April 1, 2022―March 31, 2023)(Millions of Yen)
Reportable segments
Steelmaking Engineering
Chemicalsand Steelandand Materials
Fabrication Construction

SystemSolutions

Total

Adjustments

Consolidated

Revenue
Revenue from external customers

7,176,756

319,365

257,648

221,815

7,975,586－

7,975,586

Inter-segment revenue or transfers

68,791

32,865

16,937

70,698189,292(189,292)－

7,245,547

352,231274,586

292,513

8,164,879(189,292)

7,975,586

861,443

11,674

16,17032,111

921,401(4,944)916,456

Total
Segment profit (loss)<Business Profit>

15

NIPPON STEEL CORPORATION (5401)
Fiscal 2023

Fiscal 2023 (April 1, 2023―March 31, 2024)(Millions of Yen)
Reportable segments
Steelmaking Engineering
Chemicalsand Steelandand Materials
Fabrication Construction

Total

SystemSolutions

Adjustments

Consolidated

Revenue
Revenue from external customers

8,010,655

381,600

243,327

232,513

8,868,097－

8,868,097

Inter-segment revenue or transfers

65,68927,632

17,506

79,058

189,887(189,887)－

8,076,345

409,233

260,834

311,572

9,057,985(189,887)

8,868,097

821,065(1,340)15,39035,588870,704(1,046)

869,657

Total
Segment profit (loss)<Business Profit>(Earnings per Share)
1) Basic earnings per share
Profit for the year attributable to common shares of the parent(Millions of Yen)
Fiscal 2022
(April 1, 2022－March 31, 2023)

Fiscal 2023
(April 1, 2023－March 31, 2024)

694,016549,372－－

694,016549,372

Fiscal 2022
(April 1, 2022－March 31, 2023)

Fiscal 2023
(April 1, 2023－March 31, 2024)

920,858,089 Shares

920,840,121 Shares

Profit for the year attributable to owners of the parent
Profit for the year not attributable to ordinary equity
holders of the parent
Profit for the year used to calculate basic earnings per
share

Weighted average number of ordinary shares outstanding

Weighted average number of ordinary shares outstanding

2) Diluted earnings per share
Profit for the year attributable to common shares of the parent after adjustment for the effects of dilutive potential
shares(Millions of Yen)
Fiscal 2022
(April 1, 2022－March 31, 2023)

Fiscal 2023
(April 1, 2023－March 31, 2024)

694,016549,372－－

694,016549,372

Profit for the year used to calculate basic earnings per
share
Adjustment to profit
Profit for the year used to calculate diluted earnings
per share

16

NIPPON STEEL CORPORATION (5401)
Fiscal 2023

Weighted average number of ordinary shares outstanding
Fiscal 2022
(April 1, 2022－March 31, 2023)

Fiscal 2023
(April 1, 2023－March 31, 2024)

Weighted average number of ordinary shares outstanding

920,858,089 Shares

920,840,121 Shares

Dilutive effect

112,067,646 Shares

119,715,279 Shares

1,032,925,735 Shares

1,040,555,400 Shares

Weighted average number of ordinary shares used to
calculate diluted earnings per share(Significant Subsequent Events)
Exercises of the Stock Acquisition Rights of the Convertible Bonds
Between April 1, 2024 and April 30, 2024, as a result of the exercises of the stock acquisition rights, the total
number of shares outstanding increased by 911,614 shares, and common stock and capital reserve increased by¥1,100 million each.

17