Nippon Steel (NPSCY) 6-K Current report (foreign)

FORM 6-K

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant toRule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of May 2019

Commission FileNumber: 333-228135

NIPPON STEEL CORPORATION

(Translation of registrant’s name into English)

6-1, Marunouchi2-chome

Chiyoda-ku,Tokyo 100-8071

Japan

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under coverForm 20-F orForm 40-F.

Form 20-F  ☒             Form 40-F  ☐

Indicate by check mark if the registrant is submitting theForm 6-K in paper as permitted byRegulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting theForm 6-K in paper as permitted byRegulation S-T Rule 101(b)(7):  ☐

Information furnished on this form:

EXHIBIT

Exhibit Number
1.	Press release, dated May 9, 2019, announcing the changes in Audit & Supervisory Board Members.
2.	Press release, dated May 9, 2019, announcing non-renewal of the Fair Rules for the Acquisition of Substantial Shareholdings.
3.	Flash report, dated May 9, 2019, on the consolidated results for fiscal 2018 (April 1, 2018-March 31, 2019) <under IFRS>.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	NIPPON STEEL CORPORATION
Date: May 9, 2019	By:	/s/ Kazumasa Shinkai
		Kazumasa Shinkai
		Executive Officer, Head of General Administration Division

May 9, 2019

Nippon Steel Corporation

Notice of Changes in Audit & Supervisory Board Members

This is to announce that, at the meeting of the Board of Directors held today, the candidate for the Audit & Supervisory Board Member to be submitted to the 95th Annual Shareholders Meeting scheduled to be held in late June 2019 was decided as follows.

○ Candidate for Audit & Supervisory Board Member to be Submitted to the 95th Annual Shareholders Meeting (scheduled to be held in late June 2019)

<Name>	<Current position>
Hiroshi YOSHIKAWA	President of Rissho University Professor Emeritus, The University of Tokyo

Notes: Mr. Yoshikawa, a new candidate for the Audit & Supervisory Board, meets the requirements of an outside Audit & Supervisory Board Member as set forth in Article 2, Item 16 of the Companies Act.

Katsunori Nagayasu, the Audit & Supervisory Board Member, will retire at the end of the 95th Annual Shareholders Meeting scheduled to be held in late June 2019.

May 9, 2019

To Whom It May Concern

Company Name:	Nippon Steel Corporation
Representative:	Eiji Hashimoto
	Representative Director and President
(Code Number:	5401, First Section of the TSE, First Section of the NSE, FSE, and SSE)
Contact:	Fumiaki Ohnishi
	General Manager, Public Relations Center
(Telephone:	+81-3-6867-2135, 2146, 2977, 3419)

Notice RegardingNon-Renewal of the Fair Rules for the Acquisition of Substantial

Shareholdings (Takeover Defense Measures for the Protection and Enhancement of

Shareholders’ Common Interests)

Nippon Steel Corporation (the “Company”) has resolved, at the meeting of its Board of Directors held today, not to renew the Fair Rules for the Acquisition of Substantial Shareholdings (Takeover Defense Measures for the Protection and Enhancement of Shareholders’ Common Interests) (the “Plan”), whose effective term expires at the closing of the ordinary general meeting of shareholders to be held in June 2019 (the “General Meeting of Shareholders”).

The Company adopted the Plan in March 2006, in order to protect and enhance the common interests of its shareholders, and since that time has continued the Plan to date through several revisions and renewals.

In the meantime, the Company has been striving to enhance its corporate value through implementing the business integration of Nippon Steel Corporation and Sumitomo Metal Industries, Ltd., making Nisshin Steel Co., Ltd. a wholly owned subsidiary, making Ovako AB and Sanyo Special Steel Co., Ltd. a subsidiary, executing the joint acquisition of Essar Steel India Limited in cooperation with ArcelorMittal (planned) and other efforts. The Company intends to further enhance its corporate value by steadily implementing the 2020Mid-Term Management Plan launched in March 2018, further improving its capabilities in terms of technology, cost and being global, and continuously advancing towards becoming “the best steelmaker with world-leading capabilities.”

While implementing these measures, the Company has decided not to renew the Plan, whose effective term expires at the closing of the General Meeting of Shareholders, as a result of deliberation considering recent situations, as well as opinions raised by shareholders including domestic and overseas institutional investors, regarding takeover defense measures.

Even after the termination of the Plan, in the event a third party proposes the acquisition of substantial shareholdings in the Company or other related activities, the Company will make efforts to enable its shareholders to make an appropriate informed judgment based on sufficient information and with a reasonable time period to consider such proposal, and if the proposal is reasonably judged to damage the Company’s corporate value, which could result in harm to the common interests of the Company’s shareholders, the Company will aim to protect its corporate value and the common interests of its shareholders by taking prompt and appropriate measures to the extent permitted under the then applicable laws and regulations.

Flash Report

Consolidated Basis

Results for Fiscal 2018

(April 1, 2018—March 31, 2019)

<under IFRS>

May 9, 2019

Company name:	Nippon Steel Corporation
Stock listing:	Tokyo, Nagoya, Sapporo, Fukuoka stock exchanges
Code number:	5401
URL:	https://www.nipponsteel.com/en/index.html
Representative:	Eiji Hashimoto, Representative Director and President
Contact:	Fumiaki Ohnishi, General Manager, Public Relations Center
Telephone:	+81-3-6867-2130
Scheduled date to Ordinary General Meeting of Shareholders:	June 25, 2019
Scheduled date to pay dividends:	June 26, 2019
Scheduled date to submit Securities Report:	June 25, 2019
Preparation of supplemental explanatory materials:	Yes
Holding of quarterly financial results meeting:	Yes (for investment analysts)

(Figures of less than ¥1 million have been omitted.)

1. Consolidated Operating Results, Financial Position and Cash-Flows for Fiscal 2018

  (April 1, 2018—March 31, 2019)

(1) Consolidated Operating Results

	(Percentage figures are changes from the same period of the previous fiscal year.)
	Revenue				Business profit (*)				Operating profit					Profit before income taxes					Profit for the year				Profit for the year attributable to owners of the parent
	Millions of yen		%		Millions of yen		%		Millions of yen		%			Millions of yen		%			Millions of yen		%		Millions of yen		%
Fiscal 2018		6,177,947		8.1		336,941		16.7		265,111		(8.2	)		248,769		(8.5	)		257,579		21.4		251,169		38.9
Fiscal 2017		5,712,965		21.6		288,700		69.9		288,700		37.4			271,760		39.5			212,210		37.4		180,832		31.8

	Total comprehensive income for the year					Basic earnings per share		Diluted earnings per share		Ratio of profit to total equity attributable to owners of the parent		Ratio of profit before income taxes to total assets		Ratio of business profit to revenue		Ratio of operating profit to revenue
	Millions of yen		%			Yen		Yen		%		%		%		%
Fiscal 2018		85,114		(72.7	)		281.77		—		7.9		3.1		5.5		4.3
Fiscal 2017		311,759		20.2			204.87		—		6.0		3.6		5.1		5.1

(For reference) Share of profit in investments accounted for using the equity method:	Fiscal 2018	¥86,411 million
	Fiscal 2017	¥65,657 million

(*) Business Profit on Consolidated Statements of Profit or Loss indicates the results of sustainable business activities, and is an important measure 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 Equity in profit of unconsolidated subsidiaries and affiliates and Other operating income. Other operating income and expenses is composed mainly of Dividend income, Foreign exchange gains or losses, Loss on disposal of fixed assets.

(2) Consolidated Financial Position

	Total assets		Total equity		Total equity attributable to owners of the parent		Ratio of total equity attributable to owners of the parent to total assets		Total equity attributable to owners of the parent per share
	Millions of yen		Millions of yen		Millions of yen		%		Yen
Fiscal 2018		8,049,528		3,607,367		3,230,788		40.1		3,509.72
Fiscal 2017		7,756,134		3,524,896		3,136,991		40.4		3,554.21

(3) Consolidated Statements of Cash-Flows

	Cash flows from operating activities		Cash flows from investing activities			Cash flows from financing activities			Cash and cash equivalents at end of the year
	Millions of yen		Millions of yen			Millions of yen			Millions of yen
Fiscal 2018		452,341		(381,805	)		(42,900	)		163,176
Fiscal 2017		485,539		(363,170	)		(104,969	)		142,869

2. Dividends

	Dividends per share
	End of first quarter		End of second quarter		End of third quarter		End of fiscal year		Fiscal year
	Yen		Yen		Yen		Yen		Yen
Fiscal 2017		—		30.00		—		40.00		70.00
Fiscal 2018		—		40.00		—		40.00		80.00
Fiscal 2019 (Forecasts)		—		—		—		—		—

	Cash dividends		Ratio of cash dividends to profit		Ratio of cash dividends to total equity attributable to owners of the parent
	Millions of yen		%		%
Fiscal 2017		61,872		34.2		2.0
Fiscal 2018		72,236		28.4		2.3
Fiscal 2019 (Forecasts)				—

Notes: The Company has not determined a dividend distribution plan for fiscal 2019 due to the inability to establish reasonable earnings forecasts. The dividend distribution plan will be disclosed when it becomes available.

3. Consolidated Financial Forecasts for Fiscal 2019 (April 1, 2019—March 31, 2020)

The earnings forecasts for fiscal 2019 are not presented because the outlook has not been determined due to the difficulty formulating reasonably accurate estimates at this time. For further details, please refer to page 7,“(2) Outlook for Fiscal 2019” of “1. Summary of Results of Operations.”

* Notes

(1) Changes in significant subsidiaries during the period: Yes

 Number of newly consolidated: 1    Company name: Sanyo Special Steel Co., Ltd.

 Number of excluded from consolidation: 0

(2) Changes in accounting policies and changes in accounting estimates

 (a) Changes in accounting policies required by the IFRS: Yes

 (b) Changes other than those in (a) above: None

 (c) Changes in accounting estimates: None

(3) Number of shares issued (common shares)

 (a) Number of shares issued at the end of the period (including treasury stock)

Fiscal 2018	950,321,402 shares
Fiscal 2017	950,321,402 shares

 (b) Number of treasury stock at the end of the period

Fiscal 2018	29,797,955 shares
Fiscal 2017	67,710,915 shares

 (c) Average number of shares issued during the term

Fiscal 2018	��	891,387,729 shares
Fiscal 2017		882,629,157 shares

(For Reference) A Summary ofNon-Consolidated Operating Results and Financial Position for Fiscal 2018

   (April 1, 2018—March 31, 2019)

(1) Non-Consolidated Operating Results

	(Percentage figures are changes from the same period of the previous fiscal year.)
	Net sales				Operating profit				Ordinary profit				Profit for the year
	Millions of yen		%		Millions of yen		%		Millions of yen		%		Millions of yen		%
Fiscal 2018		3,562,226		9.0		25,114		291.9		112,319		4.8		145,319		22.9
Fiscal 2017		3,266,686		9.8		6,408		—		107,213		122.7		118,275		184.7

	Earnings per share		Diluted earnings per share
	Yen		Yen
Fiscal 2018		162.79		—
Fiscal 2017		133.81		—

(2) Non-Consolidated Financial Position

	Total assets		Net assets		Ratio of shareholders’ equity to total assets		Net assets per share
	Millions of yen		Millions of yen		%		Yen
Fiscal 2018		5,462,897		2,072,452		37.9		2,247.72
Fiscal 2017		5,194,163		2,024,648		39.0		2,290.62

(For reference) Shareholders’ equity:	Fiscal 2018	¥ 2,072,452 million
	Fiscal 2017	¥ 2,024,648 million

(Note) The company adopted “Partial Amendments to Accounting Standard for Tax Effect Accounting” (Accounting Standards Board of Japan (“ASBJ”) Guidance No. 28, February 16, 2018) in the beginning of the fiscal year, and reclassified differed tax asset/ liability into fixed asset/ liability retrospectively. Accordingly, Ratio of shareholders’ equity to total assets for fiscal 2017 was recalculated.

* This flash report is exempt from the audit procedures.

* Explanation of the appropriate use of performance forecasts and other related items

(Adoption of IFRS)

The Company has disclosed its consolidated financial results based on International Financial Reporting Standards (IFRS) since fiscal 2018 onwards. Therefore, the financial results for fiscal 2017are reclassified based on IFRS.

For further details, please refer to page 9,“2. Basic Rationale for Selection of Accounting Standards”

(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 date on which this document is made public. The Company’s actual results may differ substantially from such statements due to various risks and uncertainties.

Index of Attached Documents

1. Summary of Results of Operations	2
(1) Summary of Results of Operations and Financial Position for Fiscal Year Ended March 31, 2019 (Fiscal 2018)	2
(2) Outlook for the Fiscal Year Ending March 31, 2020 (Fiscal 2019)	7
2. Basic Rationale for Selection of Accounting Standards	9
3. Consolidated Financial Statements and Major Notes	10
(1) Consolidated Statements of Financial Position	10
(2) Consolidated Statements of Profit or Loss and Consolidated Statements of Comprehensive Income or Loss	12
(3) Consolidated Statements of Changes in Equity	13
(4) Consolidated Statements of Cash-Flows	15
(5) Notes to the Consolidated Financial Statements	16
(Going Concern Assumption)	16
(Changes in Accounting Policies Required by the IFRS)	16
(Segment Information)	16
(Earnings per Share)	18
(Significant Subsequent Events)	18

1

1. Summary of Results of Operations

(1) Summary of Results of Operations and Financial Position for Fiscal Year Ended March 31, 2019 (Fiscal 2018)

Overview of Conditions in Fiscal 2018

The global economy as a whole showed gradual growth during fiscal 2018, with ongoing economic growth in the United States and a continued stable economic trend in emerging countries in general, while China’s economy showed some signs of a slowdown. The Japanese economy continued its modest recovery, with ongoing improvement in the employment environment and an increase in capital investment.

Domestic demand for steel remained solid in areas such as the automotive industry, and the overall demand for steel overseas increased. The domestic market remained strong in general on the back of solid demand and, the overseas market as a whole also remained firm despite a temporary decline in the third quarter.

In this business environment, the Nippon Steel & Sumitomo Metal (NSSMC) Group carried out various measures that were devised in its 2020Mid-Term Management Plan established in March 2018. These measures were in line with the following five initiatives that were identified as activities to be tackled in the medium to long term: delivering materials and solutions responsive to changes in society and industry; strengthening and expanding the global business; continuing to strengthen the “manufacturing capabilities” of domestic mother mills; utilizing advanced IT in steelmaking processes; and contributing to the achievement of a sustainable society (SDGs).

Operating Results by Business Segment in the Fiscal 2018

The NSSMC Group’s business segments strived to respond to the changing business environment and to improve sales and earnings. An overview of operating results by business segment is shown below.

The Chemicals segment and New Materials segment were merged to form the Chemicals and Materials segment after Nippon Steel Chemical & Material Co., Ltd. was established in October 2018 following the merger of Nippon Steel & Sumikin Chemical Co., Ltd. and Nippon Steel & Sumikin Materials Co., Ltd.

	(Billions of yen)
	Revenue						Business Profit
	Fiscal 2018			Fiscal 2017			Fiscal 2018		Fiscal 2017
Steelmaking and Steel Fabrication		5,454.5			5,017.2			274.6		245.7
Engineering and Construction		356.7			294.2			9.4		9.1
Chemicals and Materials1		247.0			237.8			25.0		17.3
System Solutions		267.5			244.2			26.5		23.2
Total		6,325.8			5,793.5			335.8		295.5
Adjustments2		(147.8	)		(80.5	)		1.1		(6.8	)
Consolidated total		6,177.9			5,712.9			336.9		288.7

1 The numbers of Chemicals and Materials segment for Fiscal 2017 are totaled the Chemicals segment and the New Materials segment.

2 Including the amount of adjustment for IFRS

2

Steelmaking and Steel Fabrication

The Steelmaking and Steel Fabrication segment strived to rebuild its “strength in manufacturing” and “strength in sales and marketing” and restore its profit base, with safety as the foremost priority. In Japan, NSSMC continued to work on building optimal production frameworks, which included Wakayama Works’ shift to advanced blast furnace and Yawata Works’ construction of new continuous casting facilities. NSSMC also carried out ongoing initiatives to maintain and increase the soundness of facilities through the introduction of the latest facilities and refurbishing of existing facilities. Relining of a blast furnace at Hokkai Iron & Coke Corporation, which handles the Muroran Works’ upstream processes, and of a coke oven at the Nagoya Works are among these initiatives. The decline in Japan’s working population was also addressed with activities to secure enough workers and to ensure succession to the next generation. They included promotion of diversity in hiring, succession of technical skills from a long-term perspective, personnel development measures, labor-saving measures (use of IT and automation) to cope with the worker shortage caused by the decline in the population, more stable production, and an increase in productivity.

Concerning overseas operations, NSSMC focused on deploying management resources in markets showing steady growth in demand and fields where it can apply the strengths of its technology and products, seeking to contribute to self-sufficient production in the countries concerned and increasing the profitability of its own overseas businesses at the same time. Since fiscal 2018, NSSMC has carried out and still continues proceedings for the joint acquisition of EssarSteel India Limited, an integrated blast furnace steelmaker in India, with ArcelorMittal to secure an integrated steelworks base in the growing Asian market. Upon completion of the acquisition, NSSMC and AcelorMittal will be able to capitalize on India’s growing steel demand in the medium- to long-term as a steel manufacturer with an integrated steelworks facility in India.

Ongoing initiatives were also carried out to strengthen the group’s business structure. Nisshin Steel Co., Ltd. was made a wholly-owned subsidiary in January 2019 and the NSSMC Group’s stainless steel business was restructured in April by reorganizing and integrating the stainless steel sheet business and the welded stainless steel pipe business, with the aim of further enhancing the competitiveness of these businesses. In the special steel business, Sanyo Special Steel Co., Ltd. became a subsidiary of NSSMC in March and Ovako AB, a Swedish special steel manufacturer that became a wholly-owned subsidiary of NSSMC last June, was again made into a wholly-owned subsidiary of Sanyo Special Steel. These changes are intended to enhance the technological strength and cost competitiveness of our bearing steel and other special steel products.

The Steelmaking and Steel Fabrication segment expanded the provision of solutions, such as in material development and processing technology, to address increasingly diversified, advanced changes in society and industries. In addition to the development of advanced materials, NSSMC has proposed new potentials for steel in a variety of fields. Examples include NSafe^TM-AutoConcept, a new concept for next-generation vehicle structures that realizes a reduction in automobile body weight and the enhancement in collision safety by combining parts structure with processing technologies;COR-TEN^TM, a material with four to eight times the weather resistance of conventional steel, which was adopted in the Second Torii Gate of Izumo Taisha Grand Shrine; and SMart BEAM^TM, a lightweight welded steelH-beam that achieves a significant reduction in the weight of steel materials, adoption of which is increasing in construction of roadside convenience stores.

3

Concerning the promotion of world-leading technology development, at the 65th Okochi Awards, which recognizes outstanding achievements in fields such as production engineering, NSSMC won the Okochi Memorial Production Award for its “development of an ultra-high-tensile material for bridge cables that will reduce impact on the environment.” NSSMC also received two awards at the traditional and prestigious 51st Ichimura Awards, which recognize technical developers who have contributed to progress in science and technology and advancements in industries. Specifically, they were the Ichimura Prize in Industry for Distinguished Achievement for the “development of thick, high-ductility steel plates to improve safety in collisions between boats,” and the Ichimura Prize in Industry against Global Warming for Distinguished Achievement for the “development of high-strength stainless steel for high-pressure hydrogen to accelerate initiatives to achieve a hydrogen society.”

With regard to environmental initiatives, NSSMC has been contributing to the conservation of energy, the reduction of CO₂ emissions, and the building of a recycling-oriented society. In fiscal 2018 NSSMC achieved a total of three million tons on an accumulated basis of plastic recycling using its method of converting raw chemical materials in coke ovens that was launched in 2000. This has resulted in a reduction of around 9.6 million tons of CO₂ emissions and prevention of around 12 million cubic meters of waste that would otherwise have been sent to landfills.

Furthermore, NSSMC also continued to strive to reduce raw material and fuel costs and improve production yield, from the perspective of cost reduction, and to seek the understanding and cooperation of its customers in adjusting steel product prices, given the surge in raw material prices and other factors. The Steelmaking and Steel Fabrication segment recorded revenue of ¥5,454.5 billion and business profit of ¥274.6 billion.

Engineering and Construction

Nippon Steel & Sumikin Engineering Co., Ltd. (renamed Nippon Steel Engineering Co., Ltd. as of April 1, 2019) builds and operates plants in the steelworks, environmental and energy fields, and provides total engineering technology worldwide in a variety of fields such as large-scale steel structures in buildings, ultra-high-rise buildings and pipelines. In fiscal 2018, due to a steady stream of orders received in the domestic energy field and the continued solid business environment in the domestic construction and environment-related sectors, the company achieved a high-level of orders similar to that in fiscal 2017. Strict control of project execution led to steady progress toward project completions. As a result, the Engineering and Construction segment recorded revenue of ¥356.7 billion and business profit of ¥9.4 billion.

Chemicals and Materials

Nippon Steel Chemical & Material Co., Ltd. was formed through a merger of two group companies in October 2018. The company continued to perform well in both the domestic and overseas markets with its needle coke, the mainstay of its coal tar chemicals business, due to ongoing demand for graphite electrode materials. In the chemicals business, styrene monomer prices fell briefly due to a price decrease and a weaker supply and demand balance for crude oil, but prices are now on a recovery trend. In the functional materials business, some signs of weakness were seen in sales of materials for smartphones and semiconductors, but steady sales were achieved in resists for LCDs, organic EL materials and metal foils. The composite materials business achieved its record-high sales due to a growth in sales of carbon fiber composite materials for the civil engineering and construction fields, primarily in the areas of repairs and reinforcements. The Chemicals and Materials segment posted revenue of ¥247.0 billion and business profit of ¥25.0 billion.

4

System Solutions

NS Solutions Corporation (renamed Nippon Steel Solutions Co., Ltd. as of April 1, 2019) provides advanced solution services and other comprehensive solutions in the planning, configuration, operation, and maintenance of IT systems for clients in a wide range of business fields. During fiscal 2018, against the backdrop of robust system investments stemming mainly from customers’ advanced operational needs, the company’s business environment continued to be favorable. In addition to developing safe, protective solutions at factories and other work sites that make use of IoT technology and developing platforms to analyze data based on AI technology, NS Solutions proceeded proactively in making changings to the company’s systems following the corporate name change to Nippon Steel Corporation and the reorganization of the group. The System Solutions segment recorded revenue of ¥267.5 billion and business profit of ¥26.5 billion.

Revenue and Profit

Consolidated results for fiscal 2018 were mainly affected by natural disasters such as heavy rains and typhoons, an overall cost increase, stemming from a surge in prices of primary raw materials, rises in costs of commodity materials, other material procurement costs, and distribution costs, and by the negative impact of differences in inventory evaluations by NSSMC and its group companies. Meanwhile, in addition to corporate-wide efforts to implement measures to stabilize facilities and operations and the steady execution of cost reduction measures, positive factors included an improvement in steel product prices, driven mainly by a rise in overseas markets, especially in the first half of fiscal 2018, and profit improvement in business segments other than Steelmaking and Steel Fabrication. As a result, NSSMC posted revenue of ¥6,177.9 billion, business profit of ¥336.9 billion and profit for the year attributable to owners of the parent of ¥251.1 billion.

Assets, Liabilities, Equity, and Cash Flows

Consolidated total assets as of March 31, 2019 were ¥8,049.5 billion, an increase of ¥293.3 billion as compared to as of March 31, 2018. This increase was primarily due to a rise in trade and other receivables of ¥136.2 billion, the inventories of ¥167.2 billion and property, plant and equipment of ¥122.8 billion mainly resulting from acquisition of Sanyo Special Steel Co., Ltd. and Ovako AB, which offset a decrease in other financial assets(non-current) of ¥194.9 billion caused by a fair value decrease and sales of investment securities.

Consolidated total liabilities as of March 31, 2019 were ¥4,442.1 billion, an increase of ¥210.9 billion as compared to as of March 31, 2018. This increase was primarily due to a rise in interest-bearing liabilities of ¥211.4 billion, from ¥2,157.7 billion as of March 31, 2018 to ¥2,369.2 billion as of March 31, 2019.

5

Consolidated total equity as of March 31, 2019 was ¥3,607.3 billion, an increase of ¥82.4 billion as compared to as of March 31, 2018. This increase was primarily due to profit for the year attributable to owners of the parent of ¥251.1 billion and disposals of treasury stock of 73.3 billion, which offset a decrease in fair value of financial assets measured at fair value through other comprehensive income of ¥86.6 billion, foreign exchange differences on translation of foreign operations of 60.5 billion and dividends of ¥70.7 billion.

As a result, total equity attributable to owners of the parent at the end of fiscal 2018 amounted to ¥3,230.7 billion, and the ratio of interest-bearing debt to total equity attributable to owners of the parent (D/E ratio) was 0.73 times.

Cash flows from operating activities in fiscal 2018 amounted to an inflow of ¥452.3 billion. The main factors were inflows of ¥248.7 billion from profit before income taxes, depreciation and amortization of ¥408.6 billion and adjustment of ¥49.4 billion from losses from reorganization, as well as outflows from an increase in inventories of ¥129.4 billion and income taxes payment of ¥80.8 billion.

Cash flows from investing activities amounted to an outflow of ¥381.8 billion, as outflows from capital investments of ¥438.7 billion, investments in subsidiaries and associates of 38.4 billion such as Sanyo Special Steel Co., Ltd. and Ovako AB, and other items exceeded inflows which included proceeds of ¥87.6 billion from sales of investment securities.

The result was a free cash inflow of ¥70.5 billion in fiscal 2018 (compared to an inflow of ¥122.3 billion in fiscal 2017).

Cash flows from financing activities amounted to an outflow of ¥42.9 billion (compared to an outflow of ¥104.9 billion in fiscal 2017), largely due to the effective increase of interest-bearing debt of ¥134.7 billion after deducting the impact of increase in interest-bearing debt of ¥76.7 billion with the effect of acquisition of Sanyo Special Steel Co., Ltd. and Ovako AB. Other factors included the payment of cash dividends of ¥70.7 billion for the end of fiscal 2017 and 1^st half of fiscal 2018.

As a result of these cash flows, cash and cash equivalents at the end of the fiscal year stood at ¥163.1 billion.

6

Basic Profit Distribution Policy and theYear-End Dividend Distribution

NSSMC’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 such factors as capital requirements for investment and other activities aimed at raising corporate value and performance prospects, while also considering the financial structure of the Company on both consolidated andnon-consolidated bases.

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 of the first-half dividend is determined based on consideration of interim performance figures and forecasts for the full fiscal year performance.

Concerning dividend distribution, in accordance with the basic profit distribution policy described above, NSSMC paid a dividend of ¥40 per share for the end of the first half (interim). Regarding the fiscalyear-end dividend, following the previously stated policy and as announced at the time of third quarter performance result (February 6, 2019), the Company now plans to request the approval of the General Meeting of Shareholders to distribute ayear-end dividend payment of ¥40 per share (bringing the dividend for the full year to ¥80 per share and representing a consolidated payout ratio of 28.4%).

(2) Outlook for the Fiscal Year Ending March 31, 2020 (Fiscal 2019)

Outlook for Operations in Fiscal 2019

NSSMC anticipates that the overall global economy will continue to grow moderately, as the government in China has been focusing on implementing various measures to support its economy and the United States is likely to sustain stable economic conditions. The Japanese economy is also expected to maintain its recovery, supported by further improvements in the employment environments.

In Japan, demand for steel and steel market prices are forecast to remain firm. While overseas steel demand and market conditions remain strong at present, there is a risk of economic downturn depending on the success or failure of economic measures by the Chinese government and the direction taken regarding theUS-China trade issues. Developments will require close monitoring.

NSSMC is unable at this time to establish reasonably accurate earnings estimates for fiscal 2019. This is due to ongoing initiatives to secure appropriate margins that enable us to sustain business, and the fact that NSSMC is under negotiation with customers regarding possible improvement of steel product prices, in light of the impacts of increased costs, stemming from a rise in prices of primary raw materials as well as rises in costs of commodity materials, other material procurement, and distribution. We will disclose earnings forecasts when reasonable estimates become possible.

7

Through the execution of the 2020Mid-Term Management Plan, the NSSMC Group will continue to forge manufacturing capabilities in its Japanese mother mills while addressing megatrends sparked by major social and industrial changes such as rapid innovation in IT, automakers’ growing need for lighter and stronger vehicles and a shift to electric and other new energy vehicles. NSSMC is also striving to advance towards its aim of being “the best steelmaker with world-leading capabilities” by further improving its capabilities through tireless pursuit of three elements — technological innovation, cost competitiveness, and global reach — and by “creating the value of steel”.

While NSSMC achieved a certain level of consolidated results in fiscal 2018, itsnon-consolidated results have stayed at a low level in the last few years, and we recognize that we need to rebuild and strengthen our profit base. With many of its steelworks, which began operation during Japan’s postwar high economic growth period, celebrating a50-year milestone of their operation, and with a generation change under way in its workforce, NSSMC intends to overcome a major structural reform, which may be described as its second foundation stage, and restore its profit base in order to secure appropriate sales prices to secure appropriate margins that enable us to sustain business.

Specifically, in addition to the steady execution of various measures set out in theMid-Term Management Plan, which are aimed at rebuilding NSSMC’s “strength in manufacturing” and enhancing its “strength in marketing and sales,” we will further enhance asset compression measures and raise the efficiency of capital investment to reinforce the plan, while promoting drastic measures to strengthen our profit base.

In April 2019 the company name was changed to “Nippon Steel Corporation,” this signifies that while inheriting what biologists call “hybrid vigor,” we will move forward and grow in the world market, as a global steelmaker with origins in Japan.

Outlook for Distribution of Dividends for Fiscal 2019

Nippon Steel has not determined a dividend distribution plan for fiscal 2019 due to the inability to establish reasonable earnings forecasts, as stated above. The dividend distribution plan will be disclosed when it becomes available.

8

2. Basic Rationale for Selection of Accounting Standards

NSSMC has applied the International Financial Reporting Standards (IFRS) to financial statements for the fiscal year ending March 31, 2018 onwards for purposes such as to increase corporate value through enhancement of global business development and improve international comparability of financial information in capital markets.

The Company has set the date of transition to the IFRS as April 1, 2016 in the Registration Statement on FormF-4 (the “FormF-4”) that the Company filed with the U.S. Securities and Exchange Commission (the “SEC”) on November 2, 2018. The Company has started to prepare its consolidated financial statements by adopting the IFRS since the consolidated fiscal year ending March 31, 2018.

The provisions regarding the first-time adoption, provided in IFRS 1, were adopted to the consolidated financial statements for the consolidated fiscal year ending March 31, 2018 in FormF-4, and the reconciliations from the Japanese GAAP to the IFRS have been prepared for the date of the transition to the IFRS, the consolidated fiscal year ending March 31, 2017, and the consolidated fiscal year ending March 31, 2018.

For this reason, the preparation of the consolidated financial statements for this fiscal year prepared in accordance with the IFRS do not fall under a first-time adoption. Therefore, the Company did not prepare the reconciliations from the Japanese GAAP to the IFRS for this fiscal year, which are required by IFRS 1 to be prepared upon the first-time adoption of the IFRS.

A copy of the registration statement on FormF-4 can be reviewed and obtained on EDGAR, the SEC’s Electric Data Gathering, Analysis, and Retrieval system.

(https://www.sec.gov/Archives/edgar/data/1140471/000119312518316702/0001193125-18-316702-index.htm)

9

3. Consolidated Financial Statements and Major Notes

(1) Consolidated Statements of Financial Position

	(Millions of Yen)
ASSETS	March 31, 2018		March 31, 2019
Current assets :
Cash and cash equivalents		142,869		163,176
Trade and other receivables		832,040		968,333
Inventories		1,399,821		1,567,116
Other financial assets		19,178		16,915
Other current assets		139,066		143,669
Total current assets		2,532,977		2,859,211
Non-current assets :
Property, plant and equipment		3,123,857		3,246,669
Goodwill		42,263		52,803
Intangible assets		97,131		106,131
Investments accounted for using the equity method		799,239		793,146
Other financial assets		1,007,627		812,668
Defined benefit assets		109,010		82,247
Deferred tax assets		34,944		88,357
Othernon-current assets		9,082		8,292
Totalnon-current assets		5,223,157		5,190,316
Total assets		7,756,134		8,049,528

10

	(Millions of Yen)
	March 31, 2018			March 31, 2019
LIABILITIES
Current liabilities :
Trade and other payables		1,580,597			1,611,403
Bonds, borrowings and lease liabilities		505,384			515,355
Other financial liabilities		674			1,017
Income taxes payable		45,350			38,719
Other current liabilities		28,189			34,042
Total current liabilities		2,160,194			2,200,538
Non-current liabilities :
Bonds, borrowings and lease liabilities		1,652,371			1,853,876
Other financial liabilities		6,572			6,501
Defined benefit liabilities		173,619			186,755
Deferred tax liabilities		95,351			28,253
Othernon-current liabilities		143,127			166,235
Totalnon-current liabilities		2,071,043			2,241,622
Total liabilities		4,231,238			4,442,160
EQUITY
Common stock		419,524			419,524
Capital surplus		386,867			393,917
Retained earnings		2,141,658			2,300,175
Treasury stock		(132,162	)		(58,831	)
Other components of equity		321,101			176,000
Total equity attributable to owners of the parent		3,136,991			3,230,788
Non-controlling interests		387,905			376,579
Total equity		3,524,896			3,607,367
Total liabilities and equity		7,756,134			8,049,528

11

(2) Consolidated Statements of Profit or Loss and

Consolidated Statements of Comprehensive Income or Loss

Consolidated Statements of Profit or Loss	(Millions of Yen)
	Fiscal 2017			Fiscal 2018
Revenue		5,712,965			6,177,947
Cost of sales		(4,948,883	)		(5,391,493	)
Gross profit		764,082			786,453
Selling, general and administrative expenses		(533,787	)		(568,409	)
Share of profit in investments accounted for using the equity method		65,657			86,411
Other operating income		91,521			102,606
Other operating expenses		(98,773	)		(70,120	)
Business profit		288,700			336,941
Losses on natural disaster		—			(22,349	)
Losses from reorganization		—			(49,480	)
Operating profit		288,700			265,111
Finance income		7,644			6,104
Finance costs		(24,584	)		(22,445	)
Profit before income taxes		271,760			248,769
Income tax expense		(59,549	)		8,809
Profit for the year		212,210			257,579
Profit for the year attributable to :
Owners of the parent		180,832			251,169
Non-controlling interests		31,377			6,409
Earnings per share
Basic earnings per share (Yen)		204.87			281.77
Consolidated Statements of Comprehensive Income or Loss	(Millions of Yen)
	Fiscal 2017			Fiscal 2018
Profit for the year		212,210			257,579
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		65,222			(104,557	)
Remeasurements of defined benefit plans		19,422			(3,531	)
Share of other comprehensive income of investments accounted for using the equity method		5,125			(2,953	)
Subtotal items that cannot be reclassified to profit or loss		89,770			(111,042	)
Items that might be reclassified to profit or loss
Changes in fair value of cash flow hedges		1,788			1,522
Foreign exchange differences on translation of foreign operations		10,592			(41,256	)
Share of other comprehensive income of investments accounted for using the equity method		(2,602	)		(21,687	)
Subtotal items that might be reclassified to profit or loss		9,778			(61,421	)
Total other comprehensive income, net of tax		99,548			(172,464	)
Total comprehensive income for the year		311,759			85,114
Comprehensive income for the year attributable to:
Owners of the parent		272,150			84,126
Non-controlling interests		39,609			988

12

(3) Consolidated Statements of Changes in Equity

Fiscal 2017	(Millions of Yen)
	Equity attributable to owners of the parent
	Common stock			Capital surplus			Retained earnings			Treasury stock			Other components of equity
													Changes in fair value of financial assets measured at fair value  through other comprehensive income			Remeasurements of defined benefit plans
Balance at beginning of the year		419,524			386,869			2,000,336			(132,063	)		277,939			—
Changes of the year
Comprehensive income
Profit for the year								180,832
Other comprehensive income														63,963			19,581
Total comprehensive income		—			—			180,832			—			63,963			19,581
Transactions with owners and other
Cash dividends								(66,293	)
Purchases of treasury stock											(102	)
Disposals of treasury stock					1						3
Changes in ownership interests in subsidiaries					(3	)
Transfer from other components of equity to retained earnings								26,783						(7,201	)		(19,581	)
Business combinations and others											0
Subtotal transactions with owners and other		—			(1	)		(39,510	)		(98	)		(7,201	)		(19,581	)
Balance at end of the year		419,524			386,867			2,141,658			(132,162	)		334,701			—
	Equity attributable to owners of the parent												Non-controlling interests			Total equity
	Other components of equity									Total equity attributable to owners of the parent
	Changes in fair value of cash flow hedges			Foreign exchange differences on translation of foreign operations			Total
Balance at beginning of the year		(9,253	)		(12,117	)		256,568			2,931,234			356,072			3,287,307
Changes of the year
Comprehensive income
Profit for the year											180,832			31,377			212,210
Other comprehensive income		2,653			5,118			91,317			91,317			8,231			99,548
Total comprehensive income		2,653			5,118			91,317			272,150			39,609			311,759
Transactions with owners and other
Cash dividends											(66,293	)		(7,406	)		(73,700	)
Purchases of treasury stock											(102	)					(102	)
Disposals of treasury stock											4						4
Changes in ownership interests in subsidiaries											(3	)		(766	)		(769	)
Transfer from other components of equity to retained earnings								(26,783	)								—
Business combinations and others											0			396			397
Subtotal transactions with owners and other		—			—			(26,783	)		(66,393	)		(7,776	)		(74,170	)
Balance at end of the year		(6,600	)		(6,998	)		321,101			3,136,991			387,905			3,524,896

13

Fiscal 2018	(Millions of Yen)
	Equity attributable to owners of the parent
	Common stock			Capital surplus			Retained earnings			Treasury stock			Other components of equity
													Changes in fair value of financial assets measured at fair value through other comprehensive income			Remeasurements of defined benefit plans
Balance at beginning of the year		419,524			386,867			2,141,658			(132,162	)		334,701			—
Changes of the year
Comprehensive income
Profit for the year								251,169
Other comprehensive income														(104,254	)		(4,369	)
Total comprehensive income		—			—			251,169			—			(104,254	)		(4,369	)
Transactions with owners and other
Cash dividends								(70,710	)
Purchases of treasury stock											(82	)
Disposals of treasury stock					(1,427	)					73,656
Changes in ownership interests in subsidiaries					8,477
Transfer from other components of equity to retained earnings								(21,942	)					17,573			4,369
Business combinations and others											(242	)
Subtotal transactions with owners and other		—			7,050			(92,652	)		73,331			17,573			4,369
Balance at end of the year		419,524			393,917			2,300,175			(58,831	)		248,020			—
	Equity attributable to owners of the parent												Non-controlling interests			Total equity
	Other components of equity									Total equity attributable to owners of the parent
	Changes in fair value of cash flow hedges			Foreign exchange differences on translation of foreign operations			Total
Balance at beginning of the year		(6,600	)		(6,998	)		321,101			3,136,991			387,905			3,524,896
Changes of the year
Comprehensive income
Profit for the year											251,169			6,409			257,579
Other comprehensive income		2,166			(60,586	)		(167,043	)		(167,043	)		(5,420	)		(172,464	)
Total comprehensive income		2,166			(60,586	)		(167,043	)		84,126			988			85,114
Transactions with owners and other
Cash dividends											(70,710	)		(7,604	)		(78,315	)
Purchases of treasury stock											(82	)					(82	)
Disposals of treasury stock											72,228						72,228
Changes in ownership interests in subsidiaries											8,477			(94,092	)		(85,614	)
Transfer from other components of equity to retained earnings								21,942									—
Business combinations and others											(242	)		89,383			89,140
Subtotal transactions with owners and other		—			—			21,942			9,670			(12,314	)		(2,643	)
Balance at end of the year		(4,433	)		(67,585	)		176,000			3,230,788			376,579			3,607,367

14

(4) Consolidated Statements of Cash-Flows

	Millions of yen
	Fiscal 2017			Fiscal 2018
Cash flows from operating activities :
Profit before income taxes		271,760			248,769
Depreciation and amortization		366,565			408,616
Finance income		(7,644	)		(6,104	)
Finance costs		24,584			22,445
Share of profit in investments accounted for using the equity method		(65,657	)		(86,411	)
Gains on sales of property, plant and equipment and intangible assets		(9,312	)		(5,801	)
Losses from reorganization		—			49,480
(Increase) decrease in trade and other receivables		931			(114,662	)
(Increase) in inventories		(165,166	)		(129,483	)
Increase in trade and other payables		92,326			81,058
Other, net		18,674			21,640
Subtotal		527,062			489,547
Interest received		5,644			5,796
Dividends received		45,775			57,088
Interest paid		(26,506	)		(19,278	)
Income taxes paid		(66,435	)		(80,811	)
Net cash flows provided by operating activities		485,539			452,341
Cash flows from investing activities :
Purchases of property, plant and equipment and intangible assets		(411,926	)		(438,758	)
Proceeds from sale of property, plant and equipment and intangible assets		13,908			12,841
Purchases of investment securities		(3,169	)		(8,362	)
Proceeds from sales of investment securities		39,936			87,693
Purchases of investments in associates		(4,940	)		(2,787	)
Proceeds from sale of investments in associates		9,522			5,348
Purchases of shares of subsidiaries resulting in change in scope of consolidation		289			(35,658	)
Proceeds from sales of shares of subsidiaries resulting in change in scope of consolidation		473			3,575
Loans to associates and others		(6,688	)		(11,870	)
Collection of loans from associates and others		2,878			3,948
Other, net		(3,455	)		2,223
Net cash flows used in investing activities		(363,170	)		(381,805	)
Cash flows from financing activities :
Increase in short-term borrowings, net		50,026			67,401
Proceeds from long-term borrowings		247,507			285,857
Repayments of long-term borrowings		(257,212	)		(192,799	)
Proceeds from issuance of bonds		40,000			60,000
Redemption of bonds		(140,000	)		(85,700	)
Purchases of treasury stock		(96	)		(55	)
Cash dividends paid		(66,293	)		(70,710	)
Dividends paid tonon-controlling interests		(7,406	)		(7,604	)
Payments from changes in ownership interests in subsidiaries that do not result in change in scope of consolidation		(740	)		(4,874	)
Other, net		29,245			(94,415	)
Net cash flows used in financing activities		(104,969	)		(42,900	)
Effect of exchange rate changes on cash and cash equivalents		1,540			(7,328	)
Net increase in cash and cash equivalents		18,940			20,306
Cash and cash equivalents at beginning of the year		123,929			142,869
Cash and cash equivalents at end of the year		142,869			163,176

15

(5) Notes to the Consolidated Financial Statements

(Going Concern Assumption)

None

(Changes in Accounting Policies Required by the IFRS)

The Company has adopted IFRS 15 “Revenue from Contracts with Customers” from the fiscal year ended March 31, 2019.

In applying IFRS 15, the Company elected to apply the cumulative effect transition method where the cumulative effect of applying the standard is recognized at the date of initial application. The Company expects that the adoption of the standard had no significant effect on each amount recognized in the consolidated financial statements.

(Segment Information)

1) Summary of reportable segment

The Company engages in the steelmaking and steel fabrication business and acts as the holding company of the Group. The Group has four operating segments determined mainly based on product and service, 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 the operations of each reportable segment:

Reportable segment	Principal businesses
Steelmaking and steel fabrication	Manufacturing and marketing of steel products
Engineering and construction	Manufacturing and marketing of industrial machinery and equipment as well as steel structures, performance of construction work under contract, waste processing and recycling, and supplying electricity, gas, and heat
Chemicals and Materials	Manufacturing and marketing of coal-based chemical products, petrochemicals, electronic materials, materials and components for semiconductors and electronic parts, carbon fiber and composite products, and products that apply technologies for metal processing
System solutions	Computer systems engineering and consulting services;IT-enabled outsourcing and other services

16

2) Information on the amounts of revenue and profit for reportable segments

Fiscal 2017 (April 1, 2017—March 31, 2018)

	(Millions of Yen)
	Reportable segment								Subtotal		Adjustments			Total		IFRS Adjustment			Consolidated
	Steelmaking and steel fabrication		Engineering and construction		Chemicals and Materials		System solutions
Revenue
Revenue from external customers		4,983,335		260,908		234,108		190,310		5,668,663		—			5,668,663		44,302			5,712,965
Inter-segment revenue or transfers		33,910		33,360		3,709		53,889		124,868		(124,868	)		—		—			—
Total		5,017,245		294,268		237,817		244,200		5,793,531		(124,868	)		5,668,663		44,302			5,712,965
Segment profit <Business Profit>*		245,708		9,110		17,399		23,292		295,510		2,030			297,541		(8,840	)		288,700

* Segment profit for each reportable segment is measured using ordinary profit under Japanese GAAP, which is adjusted to Business Profit on IFRS-based consolidated statement of profit or loss.

Fiscal 2018 (April 1, 2018—March 31, 2019)

	(Millions of Yen)
	Reportable segment								Total		Adjustments			Consolidated
	Steelmaking and steel fabrication		Engineering and construction		Chemicals and Materials		System solutions
Revenue
Revenue from external customers		5,408,633		321,346		243,014		204,952		6,177,947		—			6,177,947
Inter-segment revenue or transfers		45,902		35,360		4,052		62,550		147,867		(147,867	)		—
Total		5,454,536		356,707		247,067		267,503		6,325,814		(147,867	)		6,177,947
Segment profit <Business Profit>		274,672		9,474		25,095		26,576		335,818		1,122			336,941

17

(Earnings per Share)

1. Profit for the year attributable to common shares of parent

	(Millions of Yen)
	Fiscal 2017 (April 1, 2017—March 31, 2018)		Fiscal 2018 (April 1, 2018—March 31, 2019)
Profit for the year attributable to owners of parent		180,832		251,169
Profit for the year not attributable to ordinary equity holders of the parent		—		—
Profit for the year used to calculate basic earnings per share		180,832		251,169
2. Average number of outstanding common shares during the period
	Fiscal 2017 (April 1, 2017—March 31, 2018)		Fiscal 2018 (April 1, 2018—March 31, 2019)
Average number of outstanding common shares during the period		882,629,157 Shares		891,387,729 Shares

Diluted earnings per share is not presented as there are no potential dilutive shares.

(Significant Subsequent Events)

None

18

Nippon Steel Corporation (5401)

May 9, 2019

Results and dividends of Fiscal 2018 (Year ended March 31, 2019)

(Billions of Yen)

2018FY

1st half

2nd half

1st halfÞ 2nd half

2017FY

2017FYÞ 2018FY

Previous Forecasts (Released on Feb 6, 2019)

Revenue

6,177.9

2,940.0

3,237.9

+ 297.9

5,712.9

+ 465.0

6,200.0

Business Profitø1

336.9

158.0

178.9

ø

4 + 20.9

288.7

ø

5 + 48.2

330.0

[ R O S ]

[5.5%]

[5.4%]

[5.5%]

[+0.2%]

[5.1%]

[+0.4%]

[5.3%]

Operating profit onNon-Consolidated

25.1

6.4

+ 18.7

Additional line itemsø2

- 71.8

- 21.0

- 50.7

- 29.7

Profit for the year attributable to owners of the parent

251.1

117.0

134.1

+ 17.1

180.8

70.3

230.0

<Earnings per share (Yen)>

<281.8>

<132.6>

<149.2>

<+16.7>

<204.9>

<+76.9>

<258.0>

[R O E]

[7.9%]

[6.0%]

[+1.9%]

E B I T D Aø3

745.5

358.0

387.5

+ 29.5

655.3

+ 90.2

750.0

Interest-bearing debt

2,369.2

2,157.7

+ 211.5

D/E ratio

0.73

0.69

+0.04

Each figure on the consolidated financial result for 1st half and 2nd half of fiscal 2018 as well as fiscal 2017 is calculated based on International Financial Reporting Standards (IFRS), as the Company has disclosed the consolidated financial statements for the fiscal 2018 onwards based on IFRS.

(ø1) Business Profit indicates the results of sustainable business activities, and is an important measure 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 Equity in profit of unconsolidated subsidiaries and affiliates and Other operating income. Other operating income and expenses is composed mainly of Dividend income, Foreign exchange gains or losses, Loss on disposal of fixed assets.

(ø2) Additional line items refer to the items that are not recurrent and are remotely related to operational activities, but have a material impact in terms of amount.

(ø3) Business Profit + Depreciation

<Factors Influencing Performance>

(1) Nippon Steel Corporation

Consolidated crude steel output volume (10,000 tons)	4,784		2,365	2,419	+ 54	4,702	+ 82	Approx. 4,820
Non-Consolidated crude steel output volume (10,000 tons)*1	4,100		2,050	2,050	+ 0	4,067	+ 33	Approx. 4,130
Steel materials shipment volume (10,000 tons)*1	3,797		1,856	1,941	+ 84	3,779	+ 18	Approx. 3,810
Steel materials price (¥1,000/ton)*1	89.9		88.7	91.2	+ 2.5	84.7	+ 5.3	Approx. 89
Exchange rate (¥/$)	111		109	112	+ 3	111	- 0	Approx. 111
*1   Including Nippon Steel & Sumikin Koutetsu Wakayama Corporation in FY2017
(2) All Japan
Crude steel output volume (10,000 tons)	10,289		5,222	5,067	- 155	10,484	- 195	Approx. 10,423
Steel consumption (10,000 tons)*2	6,290		3,088	3,202	+ 114	6,289	+ 2	6,320
(In manufacturing industries)	(4,069)		(1,993)	(2,077)	(+ 84)	(4,040)	(+ 29)	(4,071)
<% of manufacturing>	<64.7%>		<64.5%>	<64.8%>	<+0.3%>	<64.2%>	<+0.4%>	<64.4%>
Plain carbon steel consumption	4,967		2,431	2,536	+ 105	4,974	- 7	4,996
In construction	2,141		1,056	1,085	+ 29	2,167	- 26	2,167
In manufacturing	2,826		1,375	1,451	+ 76	2,808	+ 19	2,829
Specialty steel consumption	1,323		657	666	+ 9	1,314	+ 9	1,324
Inventory volume (10,000 tons)	591	*3	623	591	- 32	583	+ 8
Rolled sheets (10,000 tons)	446	*3	440	446	+ 7	421	+ 25
*2   The Company estimates
*3   preliminary figures

<Segment Information>
	(Billions of Yen)
Revenue		6,177.9		2,940.0		3,237.9		+ 297.9	5,712.9		+ 465.0	6,200.0
Steelmaking and Steel Fabrication		5,454.5		2,590.0		2,864.5		+ 274.5	5,017.2		+ 437.3	5,500.0
Engineering and Construction		356.7		161.0		195.7		+ 34.7	294.2		+ 62.5	360.0
Chemicals and Materials		247.0		126.0		121.0		- 5.0	237.8		+ 9.2	250.0
System Solutions		267.5		125.0		142.5		+ 17.5	244.2		+ 23.3	258.0
Adjustment*4		(147.8	)	(62.0	)	(85.8	)	- 23.8	(80.5	)	- 67.3	(168.0	)
Business Profit		336.9		158.0		178.9		+ 20.9	288.7		+ 48.2	330.0
Steelmaking and Steel Fabrication		274.6		132.0		142.6		+ 10.6	245.7		+ 28.9	280.0
Engineering and Construction		9.4		3.0		6.4		+ 3.4	9.1		+ 0.3	8.5
Chemicals and Materials		25.0		13.0		12.0		- 1.0	17.3		+ 7.7	22.0
System Solutions		26.5		11.5		15.0		+ 3.5	23.2		+ 3.3	24.0
Adjustment*4		1.1		(1.5	)	2.6		+ 4.1	(6.8	)	+ 7.9	(4.5	)

*4 Including the amount of adjustment for IFRS

ø2 Additional line items

	(Billions of Yen)
	2018FY		1st half		2nd half
Additional line items Total		p 71.8		p 21.0		p 50.7
Losses on natural disaster		p 22.3		p 21.0		p 1.3	Typhoon and heavy rainfall
Losses from reorganization		p 49.4		—		p 49.4	Impairment loss, loss on business withdrawal, loss on inactive facilities and others

(ø4, 5) Analysis in Business Profit                               (Billions of Yen)	1st half Þ2nd half change		2016FY Þ2017FY change			Change from the previous forecasts
Change in Business Profit		+21.0		+48.0		+7.0
1. Ferrous materials business		+11.0		+ 29.0		-5.0
① Manufacturing shipment volume		+3.0		+7.0		-9.0
② Selling prices and production mix		+17.0		+179.0	}	~
③ Raw materials prices (including carry-over of raw materials)		-26.0		-110.0
④ Cost improvement		~		+44.0		~
⑤ Inventory evaluation impact		-17.0		-24.0		+3.0
⑥ Group companies (including raw materials interests and inventory evaluation impact)		+5.0		-10.0		+8.0
⑦ FOREX		-9.0		+9.0		~
⑧ Loss on disaster		+19.0		-35.0		~
⑨ Other		+19.0		-31.0		-7.0
2.Non-ferrous materials business		+6.0		+11.0		+6.0
3.Adjustments		+4.0		+8.0		+6.0

[Dividends]

As announced on February 6, 2019, the Company plans to request the approval of the General Meeting of Shareholders to distribute ayear-end dividend payment of ¥40 per share in accordance with the basic profit distribution policy previously described. This would bring the full-year dividend distribution amount to ¥80 per share, representing a consolidated payout ratio of 28.5% (IFRS basis) for fiscal 2018.

[Outlook for Operations in Fiscal 2019]

The Company is unable at this time to establish reasonably accurate earnings estimates for fiscal 2019. This is due to ongoing initiatives to secure appropriate sales prices to maintain continuity in supply, and the fact that the Company is under negotiation with customers regarding possible improvement of steel products, in light of the impacts of increased costs, stemming from a rise in prices of primary raw materials as well as rises in costs of commodity materials, other materials procurement, and distribution. the Company will disclose earnings forecasts when reasonable estimates become possible.

(Continued on the following page)

Nippon Steel Corporation (5401)

May 9, 2019

Nippon Steel Corporation

Code Number: 5401

Listings: Tokyo, Nagoya, Sapporo and Fukuoka Stock Exchanges

Contact: Fumiaki Ohnishi, General Manager, Public Relations Center-Tel: +81-3-6867-2130

Supplementary Information on the Financial Results

for Fiscal 2018

Japanese Steel Industry

1. Crude Steel Production

	(million tons)
	1st quarter		2nd quarter		1st half		3rd quarter		4th quarter		2nd half		total
2017FY		26.09		25.94		52.04		26.39		26.41		52.80		104.84
2018FY		26.56		25.65		52.22		25.70		24.97		50.67		102.89

2. Inventory Volume

At the end of:		Inventory at manufacturers and distributors		Inventory /shipment ratio			Rolled sheets *1		H-flange beams*2
		(million tons)		(%)			(million tons)		(million tons)
Mar.	2017		5.37		(124.8	)		3.80		0.201
Apr.	2017		5.54		(151.7	)		3.88		0.197
May	2017		5.78		(155.9	)		4.09		0.197
June	2017		5.56		(139.9	)		4.01		0.193
July	2017		5.42		(142.0	)		3.95		0.189
Aug.	2017		5.66		(158.4	)		4.14		0.179
Sep.	2017		5.70		(145.4	)		4.16		0.182
Oct.	2017		5.83		(150.1	)		4.11		0.176
Nov.	2017		5.66		(139.2	)		4.00		0.173
Dec.	2017		5.67		(149.2	)		4.04		0.175
Jan.	2018		5.86		(157.5	)		4.15		0.185
Feb.	2018		5.81		(154.4	)		4.12		0.196
Mar.	2018		5.83		(140.8	)		4.21		0.200
Apr.	2018		5.79		(145.8	)		4.15		0.196
May	2018		5.87		(150.1	)		4.34		0.200
June	2018		5.92		(149.3	)		4.41		0.207
July	2018		5.68		(143.1	)		4.20		0.208
Aug.	2018		6.01		(170.5	)		4.39		0.204
Sep.	2018		6.23		(176.6	)		4.40		0.198
Oct.	2018		5.87		(132.0	)		4.26		0.184
Nov.	2018		5.59		(133.8	)		4.14		0.184
Dec.	2018		5.73		(151.5	)		4.17		0.187
Jan.	2019		5.98		(154.4	)		4.40		0.195
Feb.	2019		5.93		(152.5	)		4.41		0.208
Mar.*3	2019		5.91		(139.5	)		4.46		0.219

*1 Hot-rolled, cold-rolled and coated sheets

*2 Inventories of distributors dealing withH-flange beams manufactured by Nippon Steel Corporation

*3 Preliminary report

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Nippon Steel Corporation (5401)

May 9, 2019

Nippon Steel Corporation

3. Pig Iron Production

	(million tons)
	1st quarter		2nd quarter		1st half		3rd quarter		4th quarter		2nd half		total
2017FY		9.92		10.13		20.05		10.08		10.49		20.57		40.61
2018FY		10.25		10.24		20.49		10.24		10.13		20.37		40.86

Including Hokkai Iron & Coke Co., Ltd. and Nippon Steel & Sumikin Koutetsu Wakayama Corporation*¹

4. Crude Steel Production

(Consolidated basis (The Company and its consolidated subsidiaries))

	(million tons)
	1st quarter		2nd quarter		1st half		3rd quarter		4th quarter		2nd half		total
2017FY		11.49		11.74		23.23		11.72		12.07		23.79		47.02
2018FY		11.89		11.76		23.65		12.13		12.06		24.19		47.84

(Non-consolidated basis)

	(million tons)
	1st quarter		2nd quarter		1st half		3rd quarter		4th quarter		2nd half		total
2017FY		9.90		10.19		20.09		10.08		10.50		20.58		40.67
2018FY		10.29		10.21		20.50		10.29		10.22		20.50		41.00

Including Nippon Steel & Sumikin Koutetsu Wakayama Corporation*¹

5. Steel Products Shipment

	(million tons)
	1st quarter		2nd quarter		1st half		3rd quarter		4th quarter		2nd half		total
2017FY		9.34		9.39		18.72		9.39		9.67		19.07		37.79
2018FY		9.57		8.99		18.56		9.92		9.48		19.41		37.97

Including Nippon Steel & Sumikin Koutetsu Wakayama Corporation*¹

6. Average Price of Steel Products

	(thousands of yen / ton)
	1st quarter		2nd quarter		1st half		3rd quarter		4th quarter		2nd half		total
2017FY		84.0		83.0		83.5		86.0		85.7		85.8		84.7
2018FY		87.2		90.2		88.7		91.5		90.9		91.2		89.9

Weighted average of the Company and Nippon Steel & Sumikin Koutetsu Wakayama Corporation*¹

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Nippon Steel Corporation (5401)

May 9, 2019

7. Export Ratio of Steel Products (Value basis)

	(%)
	1st quarter		2nd quarter		1st half		3rd quarter		4th quarter		2nd half		total
2017FY		42		41		42		41		41		41		41
2018FY		41		41		41		40		37		39		40

Weighted average of the Company and Nippon Steel & Sumikin Koutetsu Wakayama Corporation*¹

8. Foreign Exchange Rate

	(¥/$)
	1st quarter		2nd quarter		1st half		3rd quarter		4th quarter		2nd half		total
2017FY		111		111		111		113		110		111		111
2018FY		108		111		109		113		110		112		111

9. Amount of Capital Expenditure and Depreciation

(Consolidated basis)

	(billions of yen)
	Capital Expenditure		Depreciation
2017FY		411.9		340.7
2018FY*2		440.8		408.6

*1 Nippon Steel & Sumikin Koutetsu Wakayama Corporation was merged into Nippon Steel Corporation on April 1, 2018.

*2 included for impacts of transition to IFRS and other impacts

- 3 -