August 2, 2018
To Whom It May Concern,
Listed Company’s Name:

Nippon Steel & Sumitomo Metal Corporation

Representative:

Kosei Shindo, Representative Director and President(Code Number:

5401, First Section of the TSE, First Section of theNSE, FSE, and SSE)

Contact

Fumiaki Onishi, General Manager, Public Relations
Center(Telephone:+81-3-6867-2135, 2146, 2977, 3419)

Listed Company’s Name:Sanyo Special Steel Co., Ltd.

Representative:

ShinyaHiguchi,

Representative

DirectorandPresident(Code Number:Contact

5481, First Section of the TSE)
Akito Matsugashita, General Manager, General
Administration Department(Telephone:+81-79-235-6003)

Notice Regarding Execution of an Agreement to Make Sanyo Special Steel Co., Ltd. a Subsidiaryof Nippon Steel & Sumitomo Metal Corporation and Other Matters
As announced in the press release titled “Commencement of Discussions Regarding Making Sanyo Special Steel a
Subsidiary of Nippon Steel & Sumitomo Metal and Other Matters” dated March 15, 2018, Nippon Steel & Sumitomo Metal
Corporation (“NSSMC”) and Sanyo Special Steel Co., Ltd. (“Sanyo Special Steel”) have explored opportunities to makeSanyo Special Steel a subsidiary of NSSMC with the target date of March 2019 (the “Conversion into a Subsidiary”), andto strengthen the special steel businesses of both companies, while also working toward a global business promotion systemthrough possible cooperation between NSSMC, Sanyo Special Steel and Ovako AB (a manufacturer of special steel theheadquarters of which is located in Sweden. “Ovako”), which became a wholly-owned subsidiary of NSSMC as of June 1,
2018. This is to announce that both companies have come to an agreement on the specific method for the Conversion into a
Subsidiary, the terms and conditions for NSSMC’s investment in Sanyo Special Steel and other matters, and that anagreement (the “Agreement on the Conversion into a Subsidiary and Other Matters”) was executed today based on theirrespective resolutions of the Board of Directors of the two companies.
In the future, the two companies intend to conduct the following transactions on March 28, 2019 based on the Agreementon the Conversion into a Subsidiary and Other Matters.
1) Sanyo Special Steel will conduct a capital increase through a third-party allotment of shares (the “Capital Increase
through a Third-Party Allotment of Shares”) underwritten by NSSMC for procuring funds to acquire all the shares ofOvako (referring to the outstanding shares of Ovako’s wholly-owning parent company, Triako Holdco AB (c/o Ovako
AB, Box 1721,111 87 Stockholm, Sweden); the same applies below). As a result, the ratio of voting rights ownershipin Sanyo Special Steel by NSSMC will increase to 51.5% from the ratio before the Capital Increase through a
Third-Party Allotment of Shares of 15.3% (based on the register of shareholders of Sanyo Special Steel as of March
31, 2018; including indirect ownership by consolidated subsidiaries of NSSMC), consequently making Sanyo Special
Steel a consolidated subsidiary of NSSMC.
2) Transfer of all the shares of Ovako to Sanyo Special Steel from NSSMC (the “Transfer of Shares”; along with theConversion into a Subsidiary, the “Conversion into a Subsidiary, etc.”)
For the other conditions for the Conversion into a Subsidiary, please refer to “1. Conversion of Sanyo Special Steel into a
Subsidiary by NSSMC” and for other conditions of the Transfer of Shares, please refer to “2. Transfer of Shares of Ovako to-1-

Sanyo Special Steel by NSSMC,” both under “II. Details of the Conversion into a Subsidiary, etc.” below. In addition, theCapital Increase through a Third-Party Allotment of Shares has been separately disclosed by Sanyo Special Steel today in the“Notice on Issuance of New Shares Through a Third-Party Allotment to Nippon Steel & Sumitomo Metal Corporation andChange in Parent Company,” and the Transfer of Shares has been separately disclosed by Sanyo Special Steel today in the“Notice Regarding Acquisition of Ovako (Making It a Subsidiary).”
Conditions for the Conversion into a Subsidiary, etc. include the gaining of approval from competition authorities in Japanand overseas regarding the Conversion into a Subsidiary, and the gaining of approval on the Capital Increase through a
Third-Party Allotment of Shares from the extraordinary general shareholders’ meeting of Sanyo Special Steel scheduled tobe held in February 2019. In addition, the Conversion into a Subsidiary does not seek to suspend the listing of the shares of
Sanyo Special Steel, and the policy is to maintain the listing of Sanyo Special Steel on the First Section of the Tokyo Stock
Exchange (the “TSE”).
I. Purpose, etc. of the Conversion into a Subsidiary, etc.
(1) Operating Environment for the Special Steel Business
While a steady increase in demand is expected over the long term in the global steel market, the steel business is facingchanges in social and industrial structures, including a declining population in Japan, movements toward protectionism on a
global level, accelerating local material procurement by customers associated with the globalization of their business,growing needs for lighter and stronger vehicles, a shift to electric and other new energy vehicles, the increased use ofrenewable energy, and the use of robots in the manufacturing industry and service industry.
Against this backdrop, special steel products, which are product lines of NSSMC and Sanyo Special Steel, are used asmaterials in critical parts for various industries such as automobiles, industrial machinery, wind power generation and robots,
and it is expected that demand for these products shall continue to grow steadily and that needs will further increase forhigh-quality special steel products. On the other hand, as competition in the special steel market becomes more intense inJapan and overseas, both companies recognize that they need to strengthen the technological capabilities, productdevelopment capabilities and cost competitiveness of their special steel businesses, and enhance and expand advantages ofthe business over competitors in Japan and overseas.
(2) Efforts by Both Companies to DateNSSMC was formed in October 2012 through a business integration of Nippon Steel Corporation (established in 1950)
and Sumitomo Metal Industries, Ltd. (established in 1949). Since its formation, NSSMC has strived to become “the best
steel maker with world-leading capabilities,” and has taken measures to reduce costs by combining the technologies of thetwo former companies and improving efficiency as a result of the business integration, to integrate facilities, to invest in
downstream process overseas, and to reorganize its group companies. Through these measures, NSSMC has constantly
generated synergy effects. In particular, in an aim to further improve quality support capabilities and production capabilities
for the special steel business, NSSMC plans to launch state-of-the-art continuous casting facilities for bars and wire rods at
Yawata Works in FY 2019. In addition, Ovako, which manufactures and sells special steel mainly at the European market,
with global top level technology regarding the production of high-cleanliness steel for bearing steel products and among thehighest production capabilities in that region, was made into a wholly-owned subsidiary in June 2018 as one of the measures
for strengthening and expanding the global business under the 2020 Mid-Term Management Plan which was formulated andreleased in March 2018. Making Ovako a wholly-owned subsidiary has enabled NSSMC to further strengthen technologicalcapabilities and product development capabilities of its special steel business and expand production and sales bases in
Europe.
Meanwhile, Sanyo Special Steel was established in 1935 with a corporate philosophy of “confidence-based management”
aimed to establish the “confidence of society,” “confidence of customers,” and “confidence among people.” Based on thiscorporate philosophy, it has continued to grow as one of the leading special steel manufactures in Japan in line with its
mission to contribute to the further development of society through the provision of “steel you can count on” that can gain ahigh level of confidence from the market in all aspects including development, quality, and stable supply. In addition, Sanyo-2-

Special Steel released the 10th Medium-Term Business Plan “Sanyo Global Action 2019” in April 2017 to establish a strong
corporate structure by strengthening the business foundation, further pursue technological superiority by enhancing R&D
and quality competitiveness, and promote “Sanyo Special Steel - the Confident Choice” to a global brand in pursuit ofcontinuous growth. Sanyo Special Steel’s efforts have steadily produced results, such as the development of the Sanyo Ultra
Refining Process (SURP), in its aim of enhancing quality competitiveness centering on bearing steel.
In February 2006, both companies agreed to conduct a business alliance with the aim of the mutual benefits of production
entrustment partnership initiatives in response to steel demand fluctuations and intensifying global competition. Based on
this agreement, NSSMC acquired additional shares of Sanyo Special Steel in June 2006 and converted it into an equity
method affiliate. Both companies have worked to strengthen mutual competitiveness through the trading of steel materials,
raw materials, and other materials, etc. while developing businesses based on this partnership relationship.
(3) Vision Targeted by Both Companies
Against the backdrop above, the two companies believe that it is necessary for the three companies including Ovako, by
combining their business foundations, technical capabilities, product development capabilities, and cost competitiveness, todevelop structures for global business expansion, and to strengthen capabilities for supporting high-quality special steel
products in response to the globalization of customers in Japan and overseas in the automobile and other fields as well as
needs for high-quality special steel products, in a bid to pursue enhanced competitiveness of their respective special steelbusinesses over the medium to long term. As a measure to materialize such an aim, the two companies decided to makeSanyo Special Steel into a consolidated subsidiary of NSSMC and also make Ovako, which is a wholly-owned subsidiary of
NSSMC, a wholly-owned subsidiary of Sanyo Special Steel.
Through these measures and the addition of Sanyo Special Steel to the NSSMC Group, NSSMC will forge ahead with theestablishment of optimal production structure in the entire special steel field including Yawata Works and Muroran Works,
which are the main production bases in Japan, and the reduction in costs for procurement of materials and equipment, etc.,
thereby further enhancing the NSSMC Group’s strengths of technical capability and cost competitiveness.
Meanwhile, Sanyo Special Steel, which will join the NSSMC Group, will establish a more stable managementfoundation for continuous growth and enhancement of corporate value over the medium to long term, while further
reinforcing competitiveness in special steel products in the global market, in particular in the bearing steel field, as thischange will enable it to integrate its business operations with Ovako, Europe’s leading special steel manufacturer, combining
the two companies’ common strengths of global top level technology regarding the production of high-cleanliness steel andmutually utilizing marketing, sales and logistics networks.
Through the realization of the Conversion into a Subsidiary, etc., NSSMC and Sanyo Special Steel will aim atstrengthening the position of the NSSMC Group including Sanyo Special Steel as “the best steel maker with world-leading
capabilities,” and achieving sustainable growth and medium- to long-term enhancement of corporate value.
(4) Expected Synergies, etc.
It is expected that the following synergies will be created between NSSMC, Sanyo Special Steel, and Ovako through theConversion into a Subsidiary, etc. Accordingly, Sanyo Special Steel will seek to achieve annually 5 billion yen or more insynergies, while the NSSMC Group will seek to generate annually around 10 billion yen in synergies, including those of
Sanyo Special Steel. Further studies to realize and achieve these synergies will be pursued after approval is obtained fromcompetition authorities in Japan and overseas.
<Examples of synergies>
1) Pursuit of efficient production for the NSSMC Group as a whole·

Establishment of optimal production structure by region, achievement of high efficiency and stable production
through the sharing of operation know-how·

Strengthening of overseas production bases and mutual use of logistics networks

2) Strengthening of capability to respond to customer’s needs·

Mutual use of marketing and sales networks of the three companies-3-·Strengthening of proposal capabilities through joint R&D

3) Reduction in costs for procurement of materials and equipment, etc.
·

Improvements in efficiency of raw materials transportation, optimization of procurement of auxiliary materials, fuel,etc.

·

Streamlining through centralized purchasing of common materials and equipment

In addition to these synergies, performance results of Sanyo Special Steel are to be added to NSSMC’s consolidated income
figures, and those of Ovako are to be added to the consolidated income figures of Sanyo Special Steel.
II. Details of the Conversion into a Subsidiary, etc.
1. Conversion of Sanyo Special Steel into a Subsidiary by NSSMC(1) Structural Chart of the Conversion into a Subsidiary, etc.*1*1 Voting rights ownership ratios (%) indicated in the above chart are calculated on a consolidated basis.
(2) Reasons and Method for the Conversion into a Subsidiary
Please refer to “I. Purpose, etc. of the Conversion into a Subsidiary, etc.” above for the reason for the Conversion into a
Subsidiary.
As the method for the Conversion into a Subsidiary, NSSMC will subscribe all the ordinary shares issued as a result of athird-party allotment of shares by Sanyo Special Steel so that Sanyo Special Steel can procure the funds necessary for
acquiring all the shares of Ovako, and become a consolidated subsidiary of NSSMC.
As described in “(3) Vision Targeted by Both Companies” under “I. Purpose, etc. of the Conversion into a Subsidiary, etc.”
above, while the aim of the Capital Increase through a Third-Party Allotment of Shares is to procure the funds necessary for
acquiring all the shares of Ovako, by becoming a consolidated subsidiary of NSSMC by way of Capital Increase through a
Third-Party Allotment of Shares, Sanyo Special Steel will be able to establish a more stable management foundation forsustainable growth and medium- to long-term enhancement of corporate value. Sanyo Special Steel also wishes to maintainthe sound financial standing that it presently enjoys in view of large-scale capital and other investments scheduled under thecurrent medium-term business plan. In light of these circumstances, the two companies have concluded that the procurementof funds by way of a Capital Increase through a Third-Party Allotment of Shares to be a more suitable method comparedwith other funding methods, including borrowing from banks, capital increase by public share offering, capital increase byallotment of shares to shareholders and combinations of these.
The details of the Capital Increase through a Third-Party Allotment of Shares by Sanyo Special Steel are as follows.
NSSMC will subscribe the entirety of the issue amount.
(1)

Payment date

From December 1, 2018 to November 30, 2019 *1(2)

Number of shares to be issued

24,012,500 shares of ordinary shares(3)

Issue price2,800 yen per share(4)

Amount of funds to be raised

67,235,000,000 yen
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(5)
(6)

Method of offering or allotment

Third-party allotment(Allottee)(NSSMC: 24,012,500 shares)

Other

Conditions for the Capital Increase through a Third-Party Allotment of Shares
include the taking effect of a securities registration statement that will be filed
pursuant to the Financial Instruments and Exchange Act, the gaining of approval
from competition authorities in Japan and overseas regarding the Conversion intoa Subsidiary, and the gaining of approval from the extraordinary generalshareholders’ meeting of Sanyo Special Steel scheduled to be held in February
2019. After the securities registration statement becomes effective, NSSMC andSanyo Special Steel will execute a subscription agreement on offered shares, and
NSSMC will subscribe the shares offered.

*1 With regard to the Capital Increase through a Third-Party Allotment of Shares, Sanyo Special Steel has resolved to set theperiod from December 1, 2018 to November 30, 2019 as the period for the payment, as one of the subscription requirements
pursuant to the Companies Act, and such period for the payment is indicted as the payment date. The payment date is indicatedas such because it is impossible to fix the period necessary for gaining approval from competition authorities in Japan andoverseas as of today, while the period for the payment shall be decided taking into consideration the period necessary forgaining such approval. The payment for the Capital Increase through a Third-Party Allotment of Shares is scheduled to bemade after obtaining such approval. The planned date of the extraordinary general shareholders' meeting is set in February,
2019 among the period of the Capital Increase through Third-Party Allotment of Shares, and this date will be determined assoon as gaining such approval from competition authorities in Japan and overseas. As described in “(4) Schedule of theConversion into a Subsidiary” below, as of today, NSSMC and Sanyo Special Steel plan to conduct the Capital Increase
through a Third-Party Allotment of Shares on March 28, 2019 under the Agreement on the Conversion into a Subsidiary andOther Matters.
(3) Overview of Both Companies
Trade Name

Nippon Steel & Sumitomo Metal
Corporation
1． Steelmaking and steel fabrication(Manufacturing and sales of steel products)

Description of Business Activities

Sanyo Special Steel Co., Ltd.
1． Special steel (Manufacturing and sales of
special products)

2． Engineering and construction

2． Powders

3． Chemicals

3． Formed and fabricated materials

4． New materials
5． System solutions
Date of Establishment

April 1950

January 1935

Head Office Location

6-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo

3007, Nakashima, Shikama-ku, Himeji, Hyogo

Name and Title of theKosei Shindo

Shinya Higuchi

Representative Director and President

Representative Director and President

5,668.6 billion yen

157.4 billion yen

419.5 billion yen

20.1 billion yen

950,321,402

33,424,807

Total Assets (FY 2017)

7,592.4 billion yen

210.2 billion yen

Date of Fiscal Year End

March 31

March 31

93,557 (25,101 on a non-consolidated basis)2,666 (1,277 on a non-consolidated basis)

Representative
Net Sales (Consolidated basis)(FY 2017)
Capital (FY 2017)
Number of Outstanding Shares(FY 2017)

Number of Employees (FY 2017)
Main Customers

Sumitomo Corporation

Marubeni-Itochu Steel Inc.

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Trade Name

Nippon Steel & Sumitomo Metal

Sanyo Special Steel Co., Ltd.

Corporation
NIPPON STEEL & SUMIKIN BUSSAN

MITSUI & CO., LTD.

CORPORATION

Metal One Corporation

Metal One Corporation

Main Banks

Sumitomo Mitsui Banking Corporation

Sumitomo Mitsui Banking Corporation

MUFG Bank, Ltd.

Mizuho Bank, Ltd.

Mizuho Bank Ltd.

MUFG Bank, Ltd.

Japan Trustee Services Bank, Ltd.

4.5%

(Trust Account)

Nippon Steel & Sumitomo Metal

15.1%

Corporation

The Master Trust Bank of Japan,

4.3%

Ltd. (Trust Account)

Sanyo Special Steel Kyoeikai

6.9%

Association

Nippon Life Insurance Company

2.8%

NSK Ltd.

4.6%

Sumitomo Corporation

2.1%

Sumitomo Mitsui Banking

3.5%Japan Trustee Services Bank, Ltd.

1.9%

Corporation

Major Shareholders and(Trust Account 5)

Japan Trustee Services Bank, Ltd.

Ownership Percentage *2

Mizuho Bank, Ltd.

1.8%

(Trust Account)(As of March 31, 2018)

STATE STREET BANK WEST

1.7%

The Master Trust Bank of Japan,

CLIENT － TREATY 505234

2.8%

2.6%

Ltd. (Trust Account)

Sumitomo Mitsui Banking

1.7%

Corporation
Meiji Yasuda Life Insurance

1.6%

Company
Japan Trustee Services Bank, Ltd.

1.6%

(Trust Account 9)

Mizuho Bank, Ltd.

2.3%

NORTHERN TRUST CO.

2.1%(AVFC) RE-HCR00
Marubeni-Itochu Steel Inc.

1.9%

DFA INTL SMALL CAP VALUE

1.9%

PORTFOLIO*2 Figures indicate the proportion of the number of shares held to the total number of outstanding shares (excluding treasury
shares).
<Operating Results and Financial Position for Past 3 Years>(Billions of yen unless otherwise indicated)

Fiscal Year

Nippon Steel & Sumitomo Metal Corporation

Sanyo Special Steel Co., Ltd.

(Consolidated Basis)(Consolidated Basis)

2015

2016

2017

2015

2016

2017

Net Assets

3,009.0

3,291.0

3,515.5

113.1

123.1

128.9

Total Assets

6,425.0

7,261.9

7,592.4

179.9

183.4

210.2

Net Assets per Share (yen)3,074.28

3,340.21

3,563.80

3,483.47

3,796.79

3,960.99

Sales

4,907.4

4,632.8

5,668.6

149.1

138.6

157.4

Operating Income

167.7

114.2

182.3

12.1

11.6

10.9

Ordinary Income

200.9

174.5

297.5

11.5

11.7

10.6

145.4

130.9

195.0

7.4

7.7

7.0

Net Income per Share (yen)158.71147.96221.00230.01241.47218.34

Dividend per Share (yen)

18.0

45.0

70.0

12.0

12.5

-*3

Net Income Attributable to
Owners of Parent*3 A reverse share split making every 5 shares into 1 share was implemented on October 1, 2017. As such, the total annual
dividend is “-.” The second quarter dividend per share is 6.70 yen and the year-end dividend per share is 25.00 yen for FY
2017.
-6-

<Relationship between Party Companies>
Capital Ties

As of March 31, 2018, NSSMC holds 4,851 thousand shares equivalent to 15.1% of the voting rights
of Sanyo Special Steel, and including the shares held by NSSMC’s consolidated subsidiaries Nippon
Steel & Sumikin Logistics Co., Ltd. (voting rights ownership ratio of NSSMC: 100.0%) and NIPPONSTEEL & SUMIKIN TEXENG CO., LTD. (voting rights ownership ratio of NSSMC: 100.0%) as
indirect ownership, NSSMC holds 4,905 thousand shares equivalent to 15.3% of the voting rights of
Sanyo Special Steel. As of March 31, 2018, Sanyo Special Steel holds 577 thousand shares equivalent
to 0.1% of the voting rights of NSSMC.

Personal Ties

A Corporate Auditor of Sanyo Special Steel is NSSMC’s Managing Executive Officer.

Business Ties

Based on the agreement between NSSMC and Sanyo Special Steel contracted in February 2006,
NSSMC and Sanyo Special Steel mutually trust one another in regard to the production of steel
materials.

Status Applicable to the Related
Parties

N/A(3) Number of Shares to be Acquired by NSSMC, Acquisition Price, and Status of Share Ownership Before and After theAcquisition
1) Number of shares held before thetransfer2) Number of shares to be acquired3) Acquisition price4) Number of shares to be held after
the transfer

4,905,481 shares (includes indirect ownership of 54,137 shares)(Number of voting rights: 49,054 (includes indirect ownership of 541))(Voting rights ownership ratio: 15.3% (includes indirect ownership of 0.2%))
24,012,500 shares(Number of voting rights: 240,125)
Ordinary shares of Sanyo Special Steel: 67,235,000,000 yen
28,917,981 shares (includes indirect ownership of 54,137 shares)(Number of voting rights: 289,179 (includes indirect ownership of 541))(Voting rights ownership ratio: 51.5% (includes indirect ownership of 0.1%))(4) Schedule of the Conversion into a Subsidiary
Date of the Board resolutions

August 2, 2018

Date of Execution of the Agreement

August 2, 2018

Extraordinary general shareholders’ meeting of SanyoSpecial Steel (plan)
Date of payment of the Capital increase (plan)

Around February 2019
March 28, 2019

(5) Future Outlook
NSSMC and Sanyo Special Steel will conduct the Conversion into a Subsidiary, etc. under the condition of the gaining ofapproval from competition authorities in Japan and overseas regarding the Conversion into a Subsidiary, and the gaining ofapproval on the Capital Increase through a Third-Party Allotment of Shares from the extraordinary general shareholders’meeting of Sanyo Special Steel scheduled to be held in February 2019. Each company will make timely disclosure if any
matter arises that will have a material impact on its business performance. In addition, the Conversion into a Subsidiary does
not seek to suspend the listing of the shares of Sanyo Special Steel, and the policy is to maintain the listing of Sanyo Special
Steel on the First Section of the TSE.
2. Transfer of Shares of Ovako to Sanyo Special Steel by NSSMC(1) Reasons and Method for the Transfer of Shares
Ovako is a special steel manufacturer that manufactures and sells special steel aimed mainly at the European market and-7-has global top level technology regarding the production of high-cleanliness steel for bearing steel and other such products
and among the highest production capabilities in that region. NSSMC acquired all the shares of Ovako and made it awholly-owned subsidiary on June 1, 2018.
As stated in “I. Purpose, etc. of the Conversion into a Subsidiary, etc.” above, NSSMC and Sanyo Special Steel concluded
that making Sanyo Special Steel into a consolidated subsidiary of NSSMC and making Ovako a wholly-owned subsidiary of
Sanyo Special Steel will allow for close cooperation in technical, marketing and other areas between NSSMC, SanyoSpecial Steel and Ovako in response to the globalization of customers in Japan and overseas in the automobile and otherfields as well as needs for high-quality special steel products, so that they can combine the strengths of the three companies
and enhance competitiveness over the medium to long term. NSSMC and Sanyo Special Steel accordingly executed today
the Agreement on the Conversion into a Subsidiary and Other Matters to transfer all the shares of Ovako held by NSSMC to
Sanyo Special Steel and convert Ovako into a wholly-owned subsidiary of Sanyo Special Steel.
(2) Overview of Ovako (Consolidated Basis)
Name

Ovako ABBusiness

Manufacture and sale of special steel and secondarily processed products

Location

Kungsträdgårdsgatan 10, Stockholm, Sweden

Representative

Marcus Hedblom (CEO)Sales (FY 2017)

921 million euros (approximately 120.0 billion yen *1)

Amount of Sales (FY 2017)

780,000 tons

Total Assets (FY 2017)

743 million euros (approximately 97.0 billion yen *1)

Employees (FY 2017)

Approximately 3,000*1 Based on an exchange rate of 130 yen per euro.
(3) Number of Shares to be Transferred, Transfer Price and Status of Share Ownership Before and After the Transfer
1) Number of shares held by NSSMC before the100,000 shares (holding ratio: 100.0%)transfer2) Number of shares to be transferred

100,000 shares

3) Transfer price

67,235 million yen

4) Number of shares to be held by NSSMC after

0 shares (holding ratio: -%)the transfer(4) Schedule for the Transfer of Shares
The Transfer of Shares will be conducted on March 28, 2019 promptly after completion of the Conversion into a
Subsidiary.
(5) Future Outlook
Refer to “(5) Future Outlook” under “1. Conversion of Sanyo Special Steel into a Subsidiary by NSSMC” above for theoutlook.

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