揺るぎない 総合力世界 NIPPON STEEL & SUMITOMO METAL CORPORATION 01

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1 NIPPON STEEL & SUMITOMO METAL

2 揺るぎない 総合力世界 NIPPON STEEL & SUMITOMO METAL CORPORATION 01

3 No.1 へ ANNUAL REPORT

4 C.A.P.L MURC I/N Tek 1984 No NIPPON STEEL & SUMITOMO METAL CORPORATION 03

5 4 6, No VSB BNA AM/NS Calvert 2015 HRX NS-SUS 2017 ANNUAL REPORT

6 OUTPUT NIPPON STEEL & SUMITOMO METAL CORPORATION 05

7 OUTCOME 3 Before Service After Service ROS ROE 10% 10% D/E 0.5 ANNUAL REPORT

8 INDEX INDEX INDEX No NIPPON STEEL & SUMITOMO METAL CORPORATION 07

9 BS PL CF ANNUAL REPORT

10 No.1 NIPPON STEEL & SUMITOMO METAL CORPORATION 09

11 5, , , M&A 10 ANNUAL REPORT 2017

12 G7 G , , % IMF2020 2% 11 NIPPON STEEL & SUMITOMO METAL CORPORATION

13 ,328 1,745 1, % KPI 2016ROS 3.8% %ROE 4.6%10% D/E ROS 5.9% ROE 8.6% 31, ANNUAL REPORT

14 LCA Life Cycle Assessment Life Cycle Thinking 1 CO 2 CO 2 CO 2 CO 2 CO 2 NIPPON STEEL & SUMITOMO METAL CORPORATION 13

15 CO % % NEDOCO 2 CO ANNUAL REPORT

16 1 2 KPI D/E A 0.5 ROS ROE 10% 3 3 D/E 0.5 2, , %20 30% % % NIPPON STEEL & SUMITOMO METAL CORPORATION 15

17 * ,000 43% 5% 5% 5, ,300 5,120 3,779 1,500 6,605 4, ,629 3,207 1,500 4,842 1,405 CF FCF Cash in 47% * Cash in -5,000-3,641-3, ,532-3,330-3, * -2,657-4, ,653-10, * ,000D/E0.1 ROS ROE % 7, , ROS ROE 2,500 2,000 1,500 1, , ,100 8,000 7,100 6,000 1, ,000 1,500 2,000 2, , D/E % % ANNUAL REPORT

18 No.1 No.1 No.1 No.1 STEP 01 NIPPON STEEL & SUMITOMO METAL CORPORATION 17

19 STEP 03 OUTCOME STEP 02 No , ,000 3 ANNUAL REPORT

20 No.1 OUTPUT 10 No.1 19 NIPPON STEEL & SUMITOMO METAL CORPORATION

21 % ANNUAL REPORT

22 No.1 CO 2 ABREX ABREX6004mm CORSPACE 5, MPa NSGP -1 NSGP -2 SOLAS* *SOLAS 5,000DWT NSafe -Hull 2016 Class Notation NIPPON STEEL & SUMITOMO METAL CORPORATION 21

23 HRX19 HRX19 HRX DQ 3 3DQ 1,500MPa ANNUAL REPORT

24 No.1 No ,000 I II 15,000 12, Top TranTixxii / No TranTixxii Transcend Transform + Titanium Tran + Ti + xxii NIPPON STEEL & SUMITOMO METAL CORPORATION 23

25 No , , , , , F / / 2E / / * / * 2 200/ ANNUAL REPORT

26 No.1 No ,900 2, ,000 3, M&A NIPPON STEEL & SUMITOMO METAL CORPORATION 25

27 2 2, ,100 NSBS NSCI KNSS KOS 1,400 VAM BRN UAE AGIS ICI NSCh BNA Southern Tube 700 AM/NS JV Standard Steel JCAPCPL 0 NSGTNS-SUS WINSteel TENIGAL NPM CSVC VAM 40 ANNUAL REPORT

28 ,839 1,3801,600 1 ASEAN ,000 40,000 30,000 20,000 10, ,779 3,212 49,392 4,019 42,839 1,600 40,522 1,380 5,000 4,000 3,000 2,000 1, , * NIPPON STEEL & SUMITOMO METAL CORPORATION 27

29 1,800 WSA 1, US$ 95 OICA 120 WTI Spot US$ dmt 400 US$ wmt US$ wmt ANNUAL REPORT

30 CO2EU202195g km HVPHV EV FCV Advantage Strategy CO 2 1.2GPa 1.5GPa 1.8GPa1.5GPa /HV PHV EV GPa SteeLinC FCV NIPPON STEEL & SUMITOMO METAL CORPORATION 29

31 kg WorldAutoSteel CO2e CFRP* ,106 2, *CFRP 1 End of Life End of Life ANNUAL REPORT

32 LNG Advantage No.1 OCTG80% Ni LNG CO 2 Strategy NIPPON STEEL & SUMITOMO METAL CORPORATION 31

33 CO2 1 H Advantage Strategy 2014 ANNUAL REPORT

34 2 4 IT 187 3,486 3, , , ,127 1, ,742 1, % 36% 9% 22% 14% 19% 57% 24% EPC* EPC , * EPC Engineering Procurement Construction NIPPON STEEL & SUMITOMO METAL CORPORATION 33

35 IT , ,189 2,325 2, % 35% IT No.1 7 IT SINSSOL1.0 NSSOL2.0 NSSOL4.0 NSSOL2.0IT NSSOL4.0IoX*AI * IoX IoT Internet of Things IoH Internet of Human ANNUAL REPORT

36 NIPPON STEEL & SUMITOMO METAL CORPORATION

37 ANNUAL REPORT 2017

38 ,172 * NIPPON STEEL & SUMITOMO METAL CORPORATION 37

39 /13 12 /13 11 /13 15 /17 13 /13 17 /17 13 /13 17 /17 10 /10 12 / ANNUAL REPORT

40 M&A PDCA M&ADue Diligence 2 KPI 3 KPI 3 NIPPON STEEL & SUMITOMO METAL CORPORATION 39

41 IR 2016 IR * 10* IR IR * ANNUAL REPORT

42 Shoji MUNEOKA Kosei SHINDO Kenji TAKAHASHI Toshiharu SAKAE Shinji TANIMOTO Yutaka TAKEUCHI Atsuhiko YOSHIE Masato TSURIBE NIPPON STEEL & SUMITOMO METAL CORPORATION 41

43 Soichiro SAKUMA Yasumitsu SAEKI Shinji FUJINO Eiji HASHIMOTO Shinichi NAKAMURA Toshihiko KUNISHI *1 Mutsutake OTSUKA *1 Ichiro FUJISAKI CGL C.A.P.L. *2 Katsunori NAGAYASU *2 Hiroshi OBAYASHI *2 Jiro MAKINO *2 Seiichiro AZUMA UFJ *1 215 *2 216 ANNUAL REPORT

44 CO * 1 1,045PJ CO 2 91 * 2 *1 5 2 * CO22015 PJ* GJ* 1, ,100 1,094 1,115 1,100 1,049 1, , *PJ P 10 15J GJ G 10 9 CO 2 CO2 t-co CO * kg 20164,262 2, CO % : % 24.4 * * NIPPON STEEL & SUMITOMO METAL CORPORATION 43

45 100 SOx NOx 10 6 N SOx NOx SOxNOx % ,000 VOC VOC Volatile Organic Compounds: 1,500 1,000 1,568 1,098 PCB ANNUAL REPORT

46 INPUT 854 kl 6, kwh 6.2 2, % 81% 81% OUTPUT 4, NIPPON STEEL & SUMITOMO METAL CORPORATION 45

47 CO 2 99% 2,380 81% 81% 90% 90 ANNUAL REPORT

48 CO2 CO2 CO2 CO 2 S-TEN 1 ABREX CLEANWELL DRY NS NS NS NIPPON STEEL & SUMITOMO METAL CORPORATION 47

49 CO2 CO22015 CO 2 5 CO 2 5,458 t-co2 TRT 60 OG 21 6 CO 2 CO 2 CO 2 1,079 t-co2 792 t-co2 88 t-co2 OG CDQ 95 7 GTCC 47 CO 2 CO 2 CO 2 1,780 t-co2 85 t-co2 1,634 t-co2 CDQ 66 CDQ 4 GTCC 1 TRT 20 TRT 5 GTCC 37 GTCC 4 TRT 2 CDQ 9 TRT 21 CDQ 1 GTCC 5 TRT 1 CDQ 10 TRT 4 TRT 1 CDQ TRT CDQ *CDQ GJ RITE ANNUAL REPORT

50 NIPPON STEEL & SUMITOMO METAL CORPORATION 49

51 ANNUAL REPORT

52 OJT OFF JT NIPPON STEEL & SUMITOMO METAL CORPORATION

53 PLAN * 1 * 1 * 1 * 2 * 2 ACT DO 3.00 CHECK *1 29 *2 * 1,000,000 ANNUAL REPORT

54 1/3 10GPa R&D P.19 R&D RE 800 NIPPON STEEL & SUMITOMO METAL CORPORATION 53

55 100 1, VoU Voice of User VoS Voice of Supplier VA VoS Voice of Supplier + VoS VoS VoU Voice of User 16 ANNUAL REPORT

56 VA 2016 ECO VC ECO VC CO 21, Nippon EGalv Steel Best Supplier Award Nippon EGalv Steel 2013 ICIExcellence in Value 2015 GM 2015 Excellent Quality Award SMI Amtek CrankshaftGM2015 Quality Excellence AwardICI Excellence in Value GM Excellent Quality Award SMI Amtek Crankshaft Quality Excellence Award ,23010 NIPPON STEEL & SUMITOMO METAL CORPORATION 55

57 Before Service After Service Standard SteelSSTTXExcellent Supplier 2015TTX SS 25 D D C D 100% 2016 GM Excellent Quality Award GM Quality Excellence Award Excellence in Value 2015 Best Supplier Award 2016 ECO VC TTX Excellent Supplier 2015 ANNUAL REPORT

58 NIPPON STEEL & SUMITOMO METAL CORPORATION 57

59 I II FIFA J JA ANNUAL REPORT 2017

60 ,302,145 4,826,974 4,769,821 3,487,714 1,602,720 1,744,572 1,844,422 1,285, , , ,930 32, , , , , , ,140 11, , , ,736 36, , , ,079 11, , , ,459 39, , , ,077 11, , ,547 97,327 49, , , , ,356 * 1 135, , , ,643 * 2 192, , , ,092 72, , , ,853 41,229 45,329 45,797 46,824 18,769 20,102 22,120 22,845 5,344,924 5,193,498 4,870,680 5,002,378 2,301,556 2,418,310 2,452,535 2,403,670 * 3 1,892,883 1,908,777 1,668,682 1,844, , , , ,219 * 3 2,369,228 2,413,954 2,174,809 2,335, , , , ,209 1,213,057 1,192,027 1,454,214 1,383,794 * 4 717, , ,010 1,138, , , , , , , ,582 67, , , , , , , , ,933 19, , ,209 79,985 83,456 48,751 52,623 87,843 1* *1 * *3 *4 * NIPPON STEEL & SUMITOMO METAL CORPORATION 59

61 * ,109,774 4,090,936 4,389,922 5,516,180 5,610,030 4,907,429 4,632,890 1,402,454 1,473, , ,605 79,364 20, , , , ,202 56,301 76,801 15, , ,006 76, , , , ,531 34,049 60,803 10, , , , , , , ,692 27,991 51, ,831 93,199 58, , , , , ,946 7,144 53, , , , , , , , , , ,797 N.A 291, , , , , , , , ,937 49,757 46,663 48,175 60,071 64,437 62,966 68,493 69,110 22,783 22,842 N.A 5,000,860 4,924,711 7,089,498 7,082,288 7,157,929 6,425,043 7,261,923 2,440,761 2,386,158 1,860,799 1,828,902 2,394,069 2,683,659 2,978,696 2,773,822 2,948, , ,315 2,380,925 2,347,343 2,938,283 3,237,995 3,547,059 3,009,075 3,291, , ,484 1,337,851 1,334,512 2,543,061 2,296,326 1,976,591 2,008,263 2,104,842 1,173,382 1,172, , , , , , , , ,340 88,065 N.A 325, , , , , , , , ,110 N.A 47,244 31,785 33, , , , ,054 1,325 32,714 N.A * * * * * ANNUAL REPORT

62 ROS % ROE % % * 1 * % 11.7% 7.0% 0.3% 20.4% 17.1% 12.2% 2.8% 19.7% 18.7% 8.7% 0.7% 28.3% 20.3% 11.1% 5.9% 35.4% 36.8% 34.3% 36.9% 38.3% 37.3% 35.0% 34.5% 6,806,980 6,806,980 6,806,980 6,806,980 4,805,974 4,805,974 4,805,974 4,805, * 2 3,482,377 3,994,526 4,038,685 2,823, , , , ,905 94,347 93,839 70,152 80, , , , ,412 65,601 76,157 59,907 58, , , , , ,410151,823159,281137,904 * 2 514, , ,047 20,589 13,031 21,496 24,674 31,655 14,301 12,602 3,929 2,937 23,645 21, ,431 3, , ,992 14,756 11,479 10,732 2, ,6963,607 * 5 % 3,452 3,623 3,124 2,992 3,160 3,311 2,861 2,750 * 3 1,338 1,362 1,287 1,165 3,151 3,290 2,820 2,709 * 4 1,215 1,249 1,144 1, * % 33.4% 32.5% 38.4% * % 45.1% 45.2% 42.9% 47,257 48,757 50,077 52,205 24,982 24,926 24,245 23,674 * * * * NIPPON STEEL & SUMITOMO METAL CORPORATION 61

63 * % 3.5% 1.8% 6.5% 8.1% 4.1% 3.8% 2.4% 4.1% 5.0% 3.2% 5.9% 9.6% 7.6% 5.1% 4.6% 0.9% 7.3% 37.2% 37.1% 33.8% 37.9% 41.6% 43.2% 40.6% 31.4% 29.7% 6,806,980 6,806,980 9,503,214 9,503,214 9,503, , ,321 4,805,974 4,805, ,162 2, ,473,495 3,476,855 3,790,450 4,877,909 4,939,239 4,283,923 4,052, , , , , , , ,545 86,556 80, , , , , , , ,227 60,888 54,245 42,211 37,241 36,449 36,280 34, , , , , , , , ,711128,769113,442123,132133,168129,267128, ,968 98,846 41, , , , ,017 14,883 12,775 18,189 17,702 18,758 12,163 6,838 9,273 9,371 13,244 13,598 9,778 10,057 6,898 1,093 4,518 2, ,391 2,482 3,073 1,786 11,332 11,215 11,673 12,760 16,565 19,493 22,113 6,4783,4085,2172,101 5,053 5,017 1,256 3,492 3,244 4,603 4,816 4,732 4,453 4,517 3,246 3,020 4,355 4,567 4,496 4,217 4,262 1,290 1,272 3,135 2,909 4,097 4,202 4,188 3,962 3,978 1,172 1, % 39.2% 44% 46% 47% 45% 42% 41.6% 40.9% 59,183 60,508 83,187 84,361 84,447 84,837 92,309 22,597 23,007 *5 *6 2012ROS ROE ANNUAL REPORT

64 ,990,072 2,244,436 85,365 88, , , ,654 1,110,901 1,215,649 56,004 59, , , ,179 4,434,970 5,017,487 2,579,240 2,840, , ,697 1,028,856 1,114,851 42,684 47, , ,475 8,997 10, , ,591 87,680 91,287 41,756 38, ,222 5,229 39,413 47,045 1,768,049 2,085, , , ,879 1,041,397 41,909 36,713 58,708 92,948 51,959 55,521 45,698 45,959 2,508 3,569 1,614,918 1,955, , , , ,115 20, , ,000 3,498 3, , ,125 25,342 31,909 2,124 2, , ,616 1,801,049 2,015, , ,690 1,209,116 1,360,025 8,378 8,444 42,818 99,293 8,904 7,069 4,805 4, , ,016 62,504 92,433 3,415,968 3,970,908 2,552,512 2,624, , , , ,873 1,837,919 1,949,960 87, , , , , ,282 10,883 2,370 3,025 3,002 14,652 9,339 43,136 63, , ,782 3,009,075 3,291,015 6,425,043 7,261,923 6,425,043 7,261,923 NIPPON STEEL & SUMITOMO METAL CORPORATION 63

65 % % 4,907, ,632, ,288,386 4,065, , , , , , , ,700 5,654 17,811 14,923 44,181 79,180 40,039 43, , ,921 20,110 18,006 54,424 64,586 74,534 82, , , ,650 24,172 30,000 10,027 62,650 34,200 13,712 19,088 12,793 7,839 6,407 32,801 27, , , ,593 47,074 30,638 11,377 79,232 35, , , ,127 15, , , , , ,268 68,181 10,156 6, ,285 30,691 34,712 20,348 54,950 7, ,317 71, , , , ,625 2,497 13,828 ANNUAL REPORT

66 , , , , , ,010 12, ,879 11,539 3, , ,873 1,752,210 1,837,919 59,711 13, , ,946 5, , ,041 1,837,919 1,949,960 61,508 87,942 41,899 44,321 15, ,434 44,121 87, ,063 2,481,698 2,552,512 59,711 13, , ,946 41,899 44,321 28, , ,879 70,813 71,782 2,552,512 2,624,294 NIPPON STEEL & SUMITOMO METAL CORPORATION 65

67 , , ,262 97, ,262 97, , , ,883 11,255 8,513 11,255 8,513 10,883 2,370 2,885 3, ,025 3, ,732 14, ,080 23, ,080 23,991 14,652 9,339 79,366 43,136 36,230 20,226 36,230 20,226 43,136 63, , , , , , , , , , , , , , , , ,782 3,547,059 3,009,075 59,711 13, , ,946 41,899 44,321 28, , , , , , ,940 3,009,075 3,291,015 ANNUAL REPORT

68 , , , ,751 13,712 3,498 4,015 23,512 20,577 20,110 18,006 44,181 79,180 3,744 8,694 5,233 7,192 6,765 8,535 32,650 24,172 10,027 6,407 30,000 1,732 1,439 91,530 29, ,394 26,500 84,501 27,363 6, , , ,900 38,086 34,568 19,684 18,428 30,000 58,120 41, , , , ,879 10,111 15,004 3,134 48,715 18,121 42,520 21,565 14,413 54,747 30,820 3,776 52,892 13,019 1,962 7, , ,738 32,715 49,857 13, , , , ,826 20,000 40,000 50, ,000 41,874 44,315 59,711 13,554 23,743 82, , ,054 10, ,491 4, ,994 85, ,348 85,203 91,391 NIPPON STEEL & SUMITOMO METAL CORPORATION 67

69 ,016, , ,596 34, ,242 4,632,890 4,632,890 35,590 32,683 5,630 54, , ,175 4,052, , ,227 34, ,512 4,761, ,175 4,632, ,017 6,838 4,518 1,786 22, ,274 1, ,531 6,716, , ,406 30, ,252 7,342,843 80,919 7,261,923 2,092,610 6,066 7,400 8,790 1,177 2,116,045 12,000 2,104, ,008 2,653 6,110 2,116 4, ,064 4, ,751 2,518 1, ,015 4,015 5, , ,654 17, , ,006 70, ,320 6,859 79, ,342 4,056 19, ,181 76,571 1,031, ,733 5,637 7,005 2,224 4, ,943 3, , ,241, , ,360 36, ,178 4,907,429 4,907,429 42,402 27,639 5,463 53, , ,267 4,283, , ,823 36, ,941 5,036, ,267 4,907, ,088 12,163 1,093 3,073 19, ,912 5, ,929 5,862, , ,620 30, ,767 6,469,611 44,568 6,425,043 1,997,699 3,347 9,087 10,671 1,463 2,022,270 15,207 2,007, ,280 2,819 5,441 2,457 3, ,940 4, ,276 1,833 1, ,498 3,498 5, , ,700 20, , ,110 30, , ,897 11,284 44, ,499 3,518 20, , , , ,190 3,676 8,755 1,663 4, ,001 3, ,643 ANNUAL REPORT

70 URL , ,321,402 2,000,000, , % 19% 27% 12% 7% 2% % *3 39, , , , , *1 16, *2 14, , UFJ 13, , *1 2,2350.2% *2 6,6380.7% *3 66, , ,000 NIPPON STEEL & SUMITOMO METAL CORPORATION 69

71 ANNUAL REPORT

72 IR CSR Printed in Japan

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