April 30, 2020

Company Name
Representative
Stock listing
Code Number
ContactTelephone: Nippon Steel Corporation: Eiji Hashimoto
Representative Director and President: First Section of Tokyo Stock Exchange, and Nagoya,Fukuoka and Sapporo Stock Exchanges: 5401: Public Relations Center, General Administration Div.
: +81-3-6867-2135, 2146, 2977, 3419

Announcement of Differences between Subsidiary’s Full-year Earnings Forecasts for Fiscal Year
Ended March 31, 2020 and Actual Results
Today, Sanyo Special Steel Co., Ltd., a subsidiary of Nippon Steel Corporation (the “Company”), announced
differences between full-year earnings forecasts for fiscal year ended March 31, 2020 and actual results, as per theattachment.
The impact of the announcement is immaterial with regard to the Company’s consolidated financial results.

April 30, 2020

（Attachment ）To Whom It May Concern,

Company Name:
Representative:(Code Number:Contact:(Telephone:

Sanyo Special Steel Co., Ltd.
HIGUCHI Shinya, Representative Director and President
5481, First Section of the TSE)
Accounting & Finance Department+81-79-235-6004)

Notice regarding Differences between Full-year Earnings Forecasts for Fiscal Year Ended March 31, 2020 and Actual Results
Sanyo Special Steel Co., Ltd. (the “Company”) hereby announces that there are differences between the full-year earnings
forecasts for the fiscal year ended March 31, 2020 announced on January 31, 2020 and the actual results announced today.
1. Differences between full-year consolidated earnings forecasts and actual results for the fiscal year ended March 31, 2020
(April 1, 2019 - March 31, 2020)
Net Income
Operating
Ordinary
Attributable toNet Income Per
Net Sales
IncomeIncomeOwners of theShare
ParentMillions of yen

Millions of yen

Millions of yen

Millions of yenYen

Previous Forecasts (A)260,000-1,900-2,300-2,800-50.57

Actual Results (B)262,452-1,417-1,512-3,717-67.142,452482778-917

Increase/Decrease (B-A)
Change (%)(For Reference)
Results for fiscal year ended
March 31, 2019

0.9
185,818-

10,123

9,437

7,721

237.75

2. Differences between full-year non-consolidated earnings forecasts and actual results for the fiscal year ended March 31,
2020 (April 1, 2019 - March 31, 2020)
OperatingOrdinary
Net Income Per
Net Sales
Net Income
IncomeIncomeShareMillions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

Previous Forecasts (A)132,000

3,100

3,400

2,500

45.16

Actual Results (B)134,624

3,618

3,978-954-17.24

Increase/Decrease (B-A)
Change (%)(For Reference)
Results for fiscal year ended
March 31, 2019

2,624

518

578

2.0

16.7

17.0

162,804

9,757

10,164-3,4547,162

220.54

3. Reasons for the differences
Operating income and ordinary income exceeded the previous forecasts due to a decline in raw material and fuel prices and adecrease in fixed costs through further profit improvement measures such as reduction of labor costs and other expenses. Despite
an increase in the above, due to the recording of a write-off of goodwill relating to Mahindra Sanyo Special Steel Pvt. Ltd.
(“MSSS”) in India of 1,289 million yen as an extraordinary loss on a consolidated basis, and the recording of an impairment loss
on valuation of shares of MSSS of 3,854million yen as an extraordinary loss on a non-consolidated basis, net income attributable toowners of the parent and net income were below the previous forecasts.
For further details regarding the write-off of goodwill and the impairment loss on shares of MSSS, please refer to the “Notice
regarding Write-off of Goodwill and Impairment Loss on Shares of Consolidated Subsidiary” released today.

Please note that the official text of this document has been prepared in Japanese. To the extent there is any discrepancy
between the English translation and original Japanese version, please refer to the Japanese version.