fy2015 performance (for year ended march and …･sales increased: stable capital investment in...

© 2016 NIPPON STEEL & SUMIKIN BUSSAN CORPORATION All Rights Reserved.

FY2015 Performance (for year ended March

31, 2016) and Progress of Mid-term

Business Plan

1

May 25, 2016

President Kenji Hiwatari


Agenda

2

FY2015 Results and FY2016 Forecast

Progress of Mid-term Business Plan 2017

Appendix


FY2015 Results and FY2016 Forecast

3


FY2015 Performance and FY2016 Forecast Highlights

4

Market

Env.

Challenging Environment

・Growth lacked resilience overall due to weakening emerging economies

・Steel demand in Japan decreased in both Construction and Manufacturing

sectors

・Asian steel market price depressed by China’s over-export

・Long slump in Japanese personal consumption

Our

Efforts

Action Program from Mid-term Business Plan 2017

・Steel: Sales volume increased in ASEAN countries

by the sales expansion efforts.

: Expand steel service centers in growing regions such as Mexico

・Textiles: Cost cutting through improving productivity

: Shift manufacturing base from China to ASEAN

FY2015

Results

Sales \1,930 billion (-8%): primarily impacted by low steel prices

Ordinary Profit \29 billion (-5%): Textiles improved by equity method income

Net Profit \17 billion: Remained almost unchanged due to adjustment of tax

Dividend \15 (+25%): Payout ratio increased from 20% to 27%

FY2016

Forecast

Sales and Profits Grow

Asian steel market has already hit bottom but remains uncertain

Japanese steel market will recover following the recovery in the Asian market

・Sales \1,970 billion ・Ordinary Profit \30 billion ･Net Profit \17 billion

・Dividend \15


FY2015 Consolidated Results Highlights

5

\ billion FY14[Figures as of Jan. 2016]

FY15

Change

2H 1H 2HFY15

vs FY14

15/2H

vs 14/2H

Net Sales 1,076.9 2,104.6 991.7 939.1 [1,950.0] 1,930.8 -173.7 -137.8

Operating

Profit14.9 28.6 13.5 14.3 [27.5] 27.8 -0.7 -0.5

Equity Method

Income1.2 0.9 1.9 0.3 2.3 1.3 -0.8

Ordinary

Profit17.1 30.5 15.4 13.6 [29.0] 29.0 -1.5 -3.4

Special Profit

(Loss) (1.8) (1.8) (1.1) (0.8) (1.9) -0.1 0.9

Net Income 9.0 17.4 9.8 7.4 [17.0] 17.3 -0.1 -1.6

ROE 11.5% 11.2％ 11.6% 8.6% 10.2% -1.0% -2.8%

EPS (\) 29.39 56.39 31.86 24.19 56.05 -0.34 -5.20

Dividend (\) 6.0 12.0 7.5 7.5 [15.0] 15.0 3.0 1.5

Sales and profits declined due to sluggish Asian steel market

Dividend increased by \3.0 per share in line with the Mid-term Business Plan


Segment Results

6

\ billion FY14 FY15 Change

Steel 1,679.6 78% 1,511.1 -10% -168.5

I & I 92.4 5% 93.2 1% 0.7

Textiles 178.1 9% 176.1 -1% -2.0

Foodstuffs 152.9 8% 149.0 -3% -3.9

Total 2,104.6 100% 1,930,8 -8% -173.7

Sales

\ billion FY14 FY15 Change

Steel 20.6 64% 18.4 -11% -2.2

I & I 3.1 11% 3.2 6% 0.1

Textiles 3.6 15% 4.3 17% 0.7

Foodstuffs 2.9 10% 2.8 -5% -0.1

Total 30.5 100% 29.0 -5% -1.5

Ordinary Profit

Steel

･Sales declined: Mild winter weather in Japan

･Profit increased: Liquidation of group company in the

red

Textiles

･Sales increased: Stable capital investment in Japan

･Profit increased: Transitory profits related to the entity's

merger in Thailand

Industrial

supply &

Infrastructure

Trading of Steel, Raw Materials and

Steel service centers

Industrial machinery and machine tools,

automotive parts, railway car parts,

aluminum products and infrastructure

business

OEM & ODM production for apparel & retail,

solution business (logistics, etc.)

Import of meat and processed foods

and chain restaurant business

･Sales declined: Low prices of Japanese food markets

･Profit declined: Slump in market price of imported

chicken

Foodstuffs

･Sales declined: Sluggish Asian steel market

･Profit declined: FX losses of Chinese subsidiaries

caused by the weak Yuan

*I & I: Industrial Supply & Infrastructure


Ordinary Profit Variance Analysis [FY2014 vs. FY2015]

7

30.529.0 29.0

0.3

0.50-1.0

-1.0 -0.3 Steel

prices & mix FOREX

One-time

factors

FY14

Results

FY15

Results

○ Positive: Sales volume of steel <+0.3 million tons>

Group companies <Liquidation of group company in the red>× Negative: ASP of Steel <-12%>

FOREX <Stock evaluation by weak RMB in group company>

-1.5

Steel I & I Textiles Foodstuffs

-2.2 0.1 0.6 -0.1

Breakdown by Segment（\ billion）

Forecast

as of Feb.5

Group

companies

Sales volume of steel

Others

(\ billion)



Ordinary Profit Variance Analysis (2H/FY2014 vs. 2H/FY2015)

8

17.1

13.6 13.6

0.7

0.1

-1.3 -1.0

-1.3 -0.7

2H/FY14

Results

2H/FY15

Results-3.5

Steel I & I TextilesFood

stuffs

-2.6 -1.6 0.6 0.1

Steel

prices & mix FOREX

One-time

factors

Group

companies


Others

○ Positive: Sales volume of steel <+0.5 million tons>

× Negative: ASP of Steel <-19%>

FOREX <Stock evaluation by weak RMB>

Group companies <Steel>

One-time factors <I & I: Bad debt reserves for Russian Business>

(\ billion)

Breakdown by Segment (\ billion)

Forecast

as of Feb.5



Group Performance

9

(1.3) (1.5) (0.1) (0.3) (1.3) (0.6) (0.1) 0

6.9 6.4

2.6 3.1 1.3 1.4 0.4 0.4

2.2 1.5

FY14 FY15 FY14 FY15 FY14 FY15 FY14 FY15 FY14 FY15

Steel I & I Textiles Foodstuffs Overseas

Offices, etc.

Ordinary profit of group companies

increased +\0.5 billion excluding effects of

FOREX (-\1.0 billion)

× Steel: Weak demand in Japan and Asia

○ I & I: Transitory profits (Rojana)

○ Textiles: Liquidation of group company in the

red

Th

e c

um

ula

tive

am

ou

nt

of

OP

(c

om

pa

ny i

n t

he

bla

ck

)

(Co

mp

an

y

in t

he

re

d)

Consolidated subsidiaries ＋ equity method affiliates

\ billion

(YoY) NumberIn the

Black

In the

RedTotal

Steel (-) 56 (-2) 16 (-2) 72

I & I (+1) 19 (+1) 2 (+2) 21

Textiles (-1) 10 (-) 6 (-1) 16

Foodstuffs (-) 2 (-) 0 (-) 2

Overseas office (-1) 8 (-) 3 (-1) 11

The number of

company(-1) 95 (-1) 27 (-2) 122



Balance Sheets

10

Total assets \692.8 billionTotal assets \660.6 billion

End of FY14 End of FY15

○ Keeping healthy B/S through reductions in inventory and working capital

FY14 FY15 Change

Equity

ratio24.1％ 26.3％ +2.2%

Net -

DER

1.1

times

1.1

times－

FY14 FY15 Change

ROE 11.2% 10.2% -1.0%

-32.2

Equity capital151.5

Equity capital164.5

Noncontrolling interests, etc.

32.1

Noncontrolling interests, etc.

25.7

Debt206.2

Debt205.6

Other liabilities

302.9

Other liabilities

264.7

Fixed assets142.1

Fixed assets134.7

Inventories106.2

Inventories96.6

Other current assets444.4

Other current assets429.2


Cash Flow Management

11

(11.8) (11.5) (3.0)

(16.9)

5.2 0.1

(21.1)

15.8

49.8

(28.8)

(6.3)

(2.9)

(50.0)

9.5

46.9

FY13 FY14 FY15

Change in liquidation ofreceivables

Operating CFs

Investment CFs

Free CF

Operating cash flows Pro-forma operating CFs increased by

reductions of working capital and inventory

Operating CFs decreased by decreasing

liquidation of receivables

Investment cash flows

CAPEX \4.1 billion

Other investment \1.7 billion

Controlling investment under challenging

business environment

Free cash flow

Negative \2.9 billion

（Free CF before change in liquidation of

receivables: positive \46.9 billion )

\ billion

• Change in liquidation of receivables: + means decrease

• FY13: NS+SB


Returns to Shareholders

12

Policy of cash dividend

Targeting financial condition

ROE over 10％

Equity over \200 billion

Net DER under 1.0 times

Dividend for FY15

\15.0 (payout ratio 27%)

interim \7.5

year-end \7.5

NSSB’s most important management goal is to improve profit returns to our shareholders

Our basic dividend policy is to realize dividends that are in line with business results while

balancing profit trends and financial condition

Targeting payout ratio in this mid-term business plan is 25%-30%.

Change of the number of shares in share unit and share consolidation

Number of shares / share trading unit 1,000 shares / unit → 100 shares / unit

Share consolidation 10 shares → 1 share

Effective date Oct. 1/2016 Submitting a request for approval in the GMS

Dividend forecast for FY16 Results for FY2015

ROE 10.2％

Equity \164.5 billion

Net DER 1.1 times

\15.0 (payout ratio 27%)

interim \7.5

year-end \7.5 ＊Based on before

share consolidation


Guidance for FY2016

13

\ billionFY15

results

FY16

forecastChange

16 – 151H forecast

Sales 1,930.8 920.0 1,970.0 39.2

Operating

Profit27.8 12.5 29.0 1.2

Ordinary

Profit29.0 12.5 30.0 1.0

Net Profit 17.3 7.5 17.5 0.2

EPS (\) 56.05 24.26 56.61 0.55

Dividend(\)

15.0 7.5 15.0 -

Overseas: Prices have already recovered from unsustainable levels

Demand in Japan: Construction market will recover gradually

Boosting both sales and profits

Steel: Recovering export margin / Capturing demand for construction

Textiles: Expanding profits by cost reduction

Steel market

outlook

\ billionFY16

forecast

Change

16-15

Steel 19.0 0.5

I & I 2.7 -0.5

Textiles 5.3 0.9

Food stuffs 3.0 0.1

Total 30.0 1.0

Ordinary Profit forecast by segment

FY16 CAPEX & investment forecast

\15.0 billion(increase \9.2 billion)＊Based on before share consolidation

Our initiative


Progress of Mid-term Business Plan 2017

14


Outline of Mid-term Business Plan 2017

Key measures

15

Announced

May. 2015

Progressing NSSB’s Competitiveness

Accelerating NSSB’s Distinctiveness

Pursue customer safety, reliability and quality

Improve productivity and operational efficiency

Developing Auto-parts

Business and Industrial

Park

Expanding Market Share

with NSSMC

Expanding “Out to Out”

Business in Asian Market

Strengthening ODM and

Solution Businesses

Investment Target \45 billion (+25%)

FY17 target (vs. FY14)

Net Sales \2,300 billion (+9%)

Overseas Sales \680 billion (+23%)

Ordinary Profit \36 billion (+18%)

Net Profit \36 billion (+18%)

Utilize Merger Synergies

ROE over 10％Capital Equity over \200 billion

Net DER below 1.0 times

Payout Ratio 25%–30%

P/L Targets

Financial Goal

Steel Textiles

FoodstuffsI & I

Integrate Management System


Strong position in each business area

16

61.72

0

20

40

60

80

100\ million Gross profit per employee

in Japanese textiles trading

company

(Sales: 5th place)

(Source: The Senken newspaper FY14)

11.21 12.19 13.23 13.13 13.42

96 96 99 97 94

11.6% 12.7% 13.3% 13.5% 14.2%

FY11 FY12 FY13 FY14 FY15

NSSB’s import share of meats

Million

tons

Order booked

steel products

in Japan＊(a)

Sales

volume

of NSSB

(b)

Share (b/a)

CY2013 CY2014 CY2015

Beef 4.3% 5.2% 5.0%

Pork 6.7% 8.4% 9.3%

Chicken 8.7% 8.3% *6.9%


(Source: JISF, including semi-finished products)

(Source: NSSB)

*We controlled import volume to avoid a surplus in import

chicken market

Million

tons

(Source: Customs statistics)

Railway wheels and axel

2nd biggest trader in Japan

Headrest stays for automobiles

Global share approx. 13％


13.23 13.13 13.42 1415

88 91 80

FY13 FY14 FY15 FY16 est.

17.8 20.6 18.4 19.024.0

1,581.1 1,679.6 1,511.1 1,540


Progress of MTBP (1): Steel

17

Sales (\ billion)

Ordinary profit（\ billion）

Forecast for FY16

Sales: Profit:

・Removal of negative one-time factor (RMB)

・Improving steel margin towards 2nd half

1,840

FY17

MTBP

※ FY13: NS+SB

Sales volume: Includes semi-finished products, ASP; excludes semi-finished products

Sales volume (million tons)

Domestic

Export

Sales: Profit:

FY15 (YoY)

ASP (\ thousands per ton)

Low demand and price pressure will

continue to be affected by China.

Recovery of steel demand in Japan will be

also sluggish.

Business Environment

Major Initiatives

Share business strategies with NSSMC

Raising Market Share

Expanding Global Bases

Strengthening Competitiveness in Japan

FY17

MTBP


Outlook of Steel Division

18

Recovering moderately due to demand from construction sector

Improving steel spread and increasing sales volume

Decreasing sales of raw materials, meanwhile increasing sales of machinery due to

strong CAPEX in steel producers.

Standardized building business is extremely strong due to shortage of construction

workers

Getting robust orders of steel products for automobile in USA and Mexico

Sales Breakdown

※before eliminations

56%

25%

19%

Raw Materials,

MachinerySteel

Products

for Domestic

78%

11%

11%

Overseas

SubsidiariesDomestic

Subsidiaries

NSSB

NSSB

Sales Breakdown

Example of

standardized building

Non-

consolidated

Steel

Products

for Export

Steel Products

for domestic

Steel Products

for overseas

Raw materials,

Machinery

Overseas

Subsidiaries

Domestic

Subsidiaries


Topics of Steel Division

19

Establishment of the Manila office

Background: Expect a further increase of development of infrastructure

through ODA from Japan

Intention: To broaden our firsthand information gathering capacity, and to

secure a business base for providing sales support and

technical services for steel demand in the Philippines

Background: Strengthening the production in

Mexico of automotive manufacturers

Company name: Aguascalientes Steel Coil Center

S.A. de C.V.

Expansion of Steel Service Center in Mexico

Orders for standardized building business has recorded

highs for five straight years

Background: Chronic shortage of construction workers in Japan

Our Strength: Fully standardized / Shorter construction period /

Low cost / Multilevel floors

FY15 results: Orders: \19.6 billion, sales: \19.7 billion

FY16 forecast: Orders / Sales over \20 billion

Example of

standardized building

Automotive

manufacturers in

Mexico

Manila


14.1 18.7 21.6 23.5

28


2.43.1 3.2 2.7

3.4

98.8 92.4 93.2 95 100


20

Sales (\ billion)

Ordinary profit (\ billion)

Forecast for FY16

Sales: Profit:

・Removal of positive one-time factor (Rojana)

・Keep underlying profit

FY17

MTBP

FY13: NS + SB

Sales of headrest stays

(\ billion)

Slump in emerging economies

(Russia, Thailand, etc.)

Temporary production cutback of the

Japanese car manufacture


Major Initiatives

Preparation for the recovery period

Expansion of industrial park in Thailand

Increase production capacity for headrest

stays in Mexico

FY17

MTBP

Progress of MTBP (2): Industrial supply &

InfrastructureSales: Profit:

FY15 (YoY)


RojanaPower

Rojana Energy

Ticon Industrial

Connection

Expansion of Industrial Park in Thailand

21

Electricity

Lease plant

Water supply

Development area *3,424ha

Ayutthaya 1,580ha

Rayong１ 380ha

Rayong２ 202ha

Prachinburi 862ha

Chonburi 224ha

Laem Chabang 176ha

Tenant c

om

panie

s

Business modelEquity method income ＋Marketing margin

+ Sales machines, etc.

Under

Dev.

Solar energy

NSSB’s share : 21.2%

EGAT

Ayutthaya

Prachinburi

Rayong 1Rayong 2

Laem

Chabang

Chonburi

& treatment

& warehouse

Rojana Industrial Park

Supply

Industrial park

Rojana Industrial

Management

Logistics

services

Rojana Distribution

Center


27%32%

50%

FY14 FY15 FY16 est.

22

Sales (\ billion)


Forecast for FY16

Sales: Profit:

・Cost reduction

・Improving the productivity of ASEAN plant.

・Improving the efficiency of back office

FY17

MTBP

FY13: NS + SB

Ratio of ODM Business

in Net Sales

Long depressed market for apparel in Japan


Major Initiatives

Expand new business domain utilizing our

capability

Evolve OEM to ODM

(Original Design Manufacturing)

Increase overseas sales

Develop solution business

FY17

MTBP

Progress of MTBP (3): Textiles Sales: Profit:

FY15 (YoY)

4.2 3.6 4.3 5.3 5.4

183.8 178.1 176.1 180 200



Tripartite trade in Textiles Division

23

Suitstar

Denim factory

Yangon

Strengthening the manufacturing base in Myanmar

for European and US customers

2013 Acquisition of sewing factory (Suitstar Garment Co.)

2015 Alliance to the denim factory

NSSB

HK

office

Production Buyer

Buyer

BuyerConsultation

NSSB (Japan)

Marketing & Trading

Hong Kong

Certification

Know-how

Exhibiting at Intertextile in Shanghai

Intertextile Shanghai Apparel is one of the world’s leading apparel

fabrics and accessories fairs.

Since its inception has continually expanded, with both spring

and autumn editions together now covering around 200,000 sqm.

It plays an important role in generating new business leads in

Greater China.

Bago

European and

US costumers

Myanmar

Factories


4.5 5.0 5.0 6.0 7.0


2.7 2.9 2.8 3.0 3.2

126.3

152.9 149.0 155 160


24

Sales (\ billion)


Forecast for FY16

Sales: Profit: ・Stabilizing domestic market prices

・Improving procurement costs

FY17

MTBP

FY13: NS + SB

Overseas sales (\ billion)

Gradual contraction of the domestic market

Strong yen


Major Initiatives

Expand tri-nation trade transactions

Beef / pork to China and ASEAN region

Chicken to China

Expand export of wagyu beef

Developing the restaurant chain business

in ASEAN region and Taiwan

FY17

MTBP

Progress of MTBP (3): Foodstuffs Sales: Profit:

FY15 (YoY)


Developing the Restaurant Chain Business in the Asian Region

25

Alliance with Taiwanese

restaurant chain “Kanpai”

The Kanpai group operates a restaurant chain in the yakiniku

(barbeque) category which focuses on wagyu (Japanese

beef). The current number of stores is about 39 in Taiwan

and Shanghai.

In Dec. 2015, NSSB underwrote an increase in capitalization

of Kanpai group to raise its share to about 15% to expand its

beef business.

Expand overseas stores of

“Tsubohachi” restaurant chain

Singapore Changi Airport

Terminal 2

”Tsubohachi Jakarta” is

the first in Indonesia

FY2014: 8 stores → FY2015: 13 stores

→ FY2016 target: 15 stores

Numbers of overseas “Tsubohachi” stores

http://www.tsubohachi.co.jp/shop/upload-images/201617111951.jpg

http://www.tsubohachi.co.jp/shop/upload-images/201646115917.jpg


The Integration Goes to the Next Stage

26

1H/FY13 2H 1H/FY14 2H 1H/15 2H 1H/FY16

Corporate

Governance

Personal

System

IT System

Merger MTBPAcceptance

CG codeOutside directors

Integration for

mgt-level workers

Integration for non-mgt

workers

Employee Code of

Conduct

New Integrated

Enterprise System

Start of New Integrated Enterprise System (“COMPASS”) from Apr. 2016

Strengthen efficiency / Standardize and visualize operations

End to duplicate cost structure, such as data centers, maintenance fees, etc.

Increasing numbers of new graduates

FY2016: 57 (4 foreigners)

FY2017 (planned): 55 (4 foreigners)

Merger synergies

Contribution to OP FY2015: \1.7 billion (Sales increase 0.7 / Cost reduction 1.0)

2437

57 55

FY14 15 16 17 est.

Numbers of new graduates

FY13: NS + SB

HR & Payroll


Appendix

27


Sales and Ordinary Profit by Quarter

28

\ billionFY2014 FY2015

1Q 2Q 3Q 4Q 合計 1Q 2Q 3Q 4Q 合計

Steel 396.2 426.2 428.6 428.6 1,679.6 385.3 397.3 365.4 362.9 1,511.1

I & I 20.7 22.2 25.9 23.6 92.4 23.5 25.9 20.5 23.2 93.2

Textiles 41.7 42.5 45.4 48.4 178.1 39.0 42.9 46.7 47.3 176.1

Foodstuffs 37.5 39.6 41.3 34.3 152.9 37.8 38.6 38.0 34.4 149.0

Others 0.3 0.3 0.2 0.3 1.2 0.3 0.6 0.0 0.3 1.3

Sales 496.6 530.9 541.5 535.3 2,104.6 486.0 505.6 470.8 468.2 1,930.8

Steel 4.2 5.2 5.4 5.7 20.6 5.4 4.4 3.8 4.6 18.4

I & I 0.5 0.3 1.1 1.1 3.1 1.9 0.7 0.4 0.1 3.2

Textiles 1.1 0.1 0.3 2.0 3.6 0.7 0.5 1.0 1.9 4.3

Foodstuffs 0.9 0.7 0.8 0.4 2.9 0.7 0.6 0.8 0.6 2.8

Others 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.1

Ordinary

Profit6.9 6.5 7.7 9.4 30.5 8.8 6.5 6.2 7.4 29.0


500

600

700

800

900

1,000

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Automobile Production

2013

2014

2015

Domestic Demand Trend for Steel

29

Thousand

units

(Source: Japan Automobile

Manufacturers Association)

8,000

9,000

10,000

11,000

12,000

13,000

14,000

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Building Construction Started

2013

2014

2015

Thousand ㎡

(Source: MLIT)

FY total

148.5 million ㎡

130.8

129.7

FY Total

9,913 Thousand units

9,590

9,187


56.43 60.28 59.19

54.04 55.80 55.29

49.36

42.96 42.60 41.42

48.79 53.58

64.01

58.21 54.54 54.59

30

40

50

60

70

80

Apr/15 May/15 Jun/15 Jul/15 Aug/15 Sep/15 Oct/15 Nov/15 Dec/15 Jan/16 Feb/16 Mar/16 Apr/16 1w May 2w May 3w May

Imported iron ore price (62% fine)

Steel Market in China

30

(Source: CISA)

US$ per ton

2,662

1,925

3,265 2,868

1,500

3,500HRC Market Price (including tax)

RMB per ton

1.4

1.6

1.8

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2015

2016

Dairy Crude Steel

Production of CISA

Members

Million

tons

(Source: CISA)

(Source: CISA)


51 50 49 50

48 48 48 49

48 47 46

48 47 46 45 46 45 45 45 46

45 43 43

46

25 26 25 26 26 27 26 26 26 26 27 28 28 29 28 28 28 28 27 27 27 26 26 27

20

30

40

50

60

14/4 5 6 7 8 9 10 11 12 15/1 2 3 4 5 6 7 8 9 10 11 12 16/1 2 3

Sales Volume of Ordinary Steel

Domestic

Export

(Source: JISF (The Japan Iron and Steel Federation, 3 months moving average)

Steel Demand in Japan

31

32.432.033.233.033.633.8

30.529.029.2

26.6

23.022.825.225.1

27.2

23.022.1

17.214.414.715.716.116.7

18.6

23.1

27.0

0

10

20

30

40

14/4 5 6 7 8 9 10 11 12 15/1 2 3 4 5 6 7 8 9 10 11 12 16/1 2 3 4 5

Bid Prices of Export Scrap Steel

(Source: Kanto-Tetsugen Cooperative Association)

\ thousand per ton

Million

tons per

annum


Steel Market in Japan

32

4.2 4.3 4.1 4.1 4.1 4.2 4.3

4.1 4.2 4.3 4.2 4.3 4.3 4.4

4.2 4.2 4.2 4.3 4.3 4.1 4.2 4.2 4.1 4.1

66

60

40

45

50

55

60

65

70

3.0

3.5

4.0

4.5

5.0

5.5

6.0

14/4 5 6 7 8 9 10 11 12 15/1 2 3 4 5 6 7 8 9 10 11 12 16/1 2 3 4 5

Rolled steel* inventories (left axis)

HRC market price (right axis)

(Million tons) （\ thousand per ton）

Rolled Sheets Inventory and HRC Market Price

(Source: Japan Metal Daily *Rolled steel: Hot-rolled, cold-rolled and coated sheets)

229 231 221 215 211 213 208 206 207 211 218 218 206 207 201 197 198 198 195 189 185 185 192

203

78

70

60

65

70

75

80

85

90

100

150

200

250

300

350

400

14/4 5 6 7 8 9 10 11 12 15/1 2 3 4 5 6 7 8 9 10 11 12 16/1 2 3 4 5

Inventory (left axis)

Market price (right axis)

(Thousand tons) (\ thousand per ton)

H-beam Inventory and Market Price

(Source: Japan Metal Daily)


Domestic Market Trend of Apparel Retail Industries

33

1.6 1.6 1.6 1.5 1.4 1.4 1.2 1.1 1.1 1.1 1.0 1.0

9.2

3.3 3.1 5.1

3.0 2.9 2.7 2.3 2.2 2.2 2.2 2.2 2.1

4.1 4.2

4.4

4.6 4.8 4.6 4.4 4.4 4.6 4.7 4.8 4.9

1.2 1.1

1.1

1.1 1.1 1.1 1.1 1.2 1.2 1.3 1.3 1.4

10.2 10.0

12.2

10.3 10.3 9.8 9.1 8.9 9.1 9.2 9.3 9.4

CY03 04 05 06 07 08 09 10 11 12 13 14 15

OthersSpecialty stores/ Select shopsDepartment storesGeneral merchandising stores

(\ trillion)

31%

16%42%

11%Department

stores

GMS

Specialty stores

/ Select shops

Others

2004

10.0

\ trillion

22%

11%

52%

15%

2014

9.4

\ trillion

(Source: YANO research, NSSB estimate)

Department

stores

GMS

Specialty stores

/ Select shops

Others


200

250

300

350

400

0

20

40

60

80

14/4 14/5 14/6 14/7 14/8 14/9 14/1014/1114/12 15/1 15/2 15/3 15/4 15/5 15/6 15/7 15/8 15/9 15/1015/1115/12 16/1 16/2 16/3

Volume(left axis)

Price(right axis)

（\/kg）(Thousand tons)

(100)

(67）

Import Price and Volume Trend of Meats

34

500

600

700

800

0

20

40

60

14/4 14/5 14/6 14/7 14/8 14/9 14/1014/1114/12 15/1 15/2 15/3 15/4 15/5 15/6 15/7 15/8 15/9 15/1015/1115/12 16/1 16/2 16/3

Volume(left axis)

Price(right axis)

（\/kg）(Thousand tons) (100)

(74）

(Source: Custom)

520

540

560

580

0

40

80

120

14/4 14/5 14/6 14/7 14/8 14/9 14/1014/1114/12 15/1 15/2 15/3 15/4 15/5 15/6 15/7 15/8 15/9 15/1015/1115/12 16/1 16/2 16/3

Volume(left axis)

Price(right axis)

（\/kg）(Thousand tons)

(100)

(93）

Beef

Pork

Chicken

( ) Index: 2 years latest high = 100

http://illpop.com/png_foodhtm/livestock_a11.htm




22.7% 22.5%

24.3%

26.1%

23.2%

24.8%

25.8%

27.2% 27.2%27.9% 27.8%

24.0%

24.2%

FY10 11 12 13/1H 2H 14/1Q 2Q 3Q 4Q 15/1Q 2Q 3Q 4Q

Trend of Overseas Sales

Sales Breakdown by Region

35

65%

18%

13%

4%

FY15 Overseas Sales Breakdown

FY14 FY15

\2,104.6

billion

Asia

(excluding

China）

\1,930.8

billion

Overseas

26%

Overseas

26%

Domestic

74%

Domestic

74%

China

Americas

RoW


Domestic Sales Bases

36

Domestic: 32

Sales Bases■Hokkaido

Hokkaido Branch office

(Sapporo)

Muroran Sub-Branch office

■Chubu and Tokai

Nagoya Branch office

Tokai Branch office

Shizuoka Sub-Branch office

■Kansai

Osaka office

Hirohata Sub-Branch office

■Niigata and Hokuriku

Niigata Branch office

Hokuriku Branch office

(Toyama)

■Kanto

Head office (Tokyo)

Kimitsu Branch office

Kitakanto Sub-Branch office

(Gunma)

Ibaraki Branch office

Kashima Sub-Branch office

■Tohoku

Tohoku Branch Office (Sendai)

Kamaishi Sub-Branch office

Akita Sub-Branch office

Fukushima Sub-Branch office

■Chugoku and Shikoku

Chugoku Branch office

(Hiroshima)

Shikoku Branch office

(Takamatsu)

Hikari Sub-Branch office

Okayama Sub-Branch office

Onoda Sub-Branch office

Ehime Sub-Branch office

■Kyushu and Okinawa

Kyushu Branch office (Fukuoka)

Yawata Branch office

Oita Branch Office

Nagasaki Sub-Branch office

Kumamoto Sub-Branch office

Minami Kyushu Sub-Branch Office

(Kagoshima)

Okinawa Sub-Branch office


Overseas Sales Bases

37

＜USA＞Chicago

Elk Grove Village

Los Angeles

Pittsburgh

Houston

＜Mexico＞Mexico City

＜China＞Beijing, Dalian, Shanghai, Qingdao, Nantong,

Changzhou, Wuhan, Hong Kong, Shenzhen,

Dongguan, Guangzhou

＜Taiwan＞Taipei, Kaohsiung

＜South Korea＞Seoul, Busan

＜Vietnam＞Ho Chi Minh, Hanoi

＜Thailand＞Bangkok

＜Philippines＞Manila＜Malaysia＞

Kuala Lumpur

＜Singapore＞Singapore

＜Indonesia＞Jakarta

Bandung

＜UAE＞Dubai

＜India＞New Delhi, Mumbai

＜Bangladesh＞Dhaka

＜Myanmar＞Yangon

＜Russia＞Moscow

＜France＞Paris

＜Australia＞Melbourne

Brisbane

Overseas: 38 cities in

18 countries

Sales Bases


Some glossaries

38

Core trading

company

Nippon Steel & Sumikin Bussan Corporation was born in October 2013 as a core

trading company of NSSMC group. The Steel Division sells many types of steel

products made by NSSMC, the second largest steel manufacturer in the world, and its

group companies. We provide many customers with these products by making use of

the domestic and global sales network built through the long-term business

partnership.

Rojana

industrial park

Rojana Industrial Park Public Co., Ltd. was established in 1988 by a joint venture

between NSSB and Thai (Vinichbutr Group) companies for the purpose of

development and operation of industrial parks in Ayutthaya Province, Rayong

Province and Prachinburi Province. With over two decades of experience in

developing high-quality industrial parks, Rojana becomes a leader of industrial park

developing companies in Thailand.

Headrest

business

Headrest (restraints) are an automotive safety feature, attached or integrated into the

top of each seat. NSSB manufactures and supplies automobile headrests and its parts

at 9 plants in Japan, Korea, USA, Mexico, Vietnam, China, and Poland with approx.

13% of the global market share.

ODM in

apparel

The Textiles Division has evolved as a global OEM manufacturer, not as a traditional

trading company, in its functions. Outside Japan it has established and maintains

production centers and a distribution network across China and ASEAN countries. In

Japan it is attempting to rebuild its domestic production system. The division aims to

expand the business domain by developing the ODM (Original Design Manufacturing)

style.

Imported

meats

In the field of imported meats including beef, pork, and chicken, which the Foodstuffs

Division pioneered, the division conducts stable importing in partnership with

prominent overseas packers and production centers that provide integrated services

from stock raising to processing. In this way the division has always maintained a top

share of the market.

http://www.nssmc.com/en/index.html

© 2016 NIPPON STEEL & SUMIKIN BUSSAN CORPORATION All Rights Reserved.39

Corporate Philosophy

1. Continuing to be a corporate group driven by the aspiration of providinggoods and services that offer new value to the larger society.

2. Putting trust and reliability first, and by doing so developing together withour customers.

3. Aiming to become the kind of organization that increasingly cultivates, utilizes,and values human resources and their talents.

The current material is not subject to the audit procedures based on the Financial Instruments and Exchange Law and it does not guarantee the accuracy and the completeness of the material.Forecasts regarding future performance in these materials are based on assumptions judged to be valid and information available to the Company at the time the materials were created. These materials are not promises by the Company regarding future performance. Actual performance may differ significantly from these forecasts for a number of reasons. Nothing in this document shall be considered as an offer to sell or solicitation of an offer to buy any security, commodity or other instrument. No responsibility or liability can be accepted for errors or omissions or for any losses arising from the use of this information.

fy2015 performance (for year ended march and …･sales increased: stable capital investment in...

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