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7/31/2019 Nisshin Steel Q1results
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Consolidated FinancialResults for the Fiscal Year
ended March 31, 2012
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Qualitative Information about the
Fiscal Year ended March 31, 2012
1
As the world economy was clouded with increasing moods of stagnation and instability,
the Japanese economy gradually recovered in this period after having suffered fromsluggishness due to the effects of the Great East Japan Earthquake. However, othernegative factors including the Thailand flood, record high yen rates and economic
downturn in developing countries have adversely affected the economy.
For the iron and steel industry, the prices of such raw materials as iron ore and coalremained high, and overall difficulties mounted as exports performed poorly due to therising yen and economic sluggishness in Asia and domestic demand fell into a slump
due to increases in imports.
Against this operating environment, the Nisshin Group put more efforts into promotingrationalization and general cost-cutting measures currently in place. Cost increases thatcould not be absorbed with our own efforts had to be reflected in sales prices after the
situation was diligently explained to customers for their understanding.
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Results of Operations for the Fiscal
Year ended March 31, 2012
2
(Billions of yen)
FY 2011 DifferenceDifference
a b a-b c a-c280.3 277.5 557.8 545.3 12.5 550.0 7.8
7.3 (0.3) 7.0 23.9 (16.9) 4.0 3.0
6.8 (2.2) 4.6 18.5 (13.9) 1.0 3.6
3.9 (8.7) (4.8) 12.0 (16.8) (10.0) 5.24.34 (9.73) (5.39) 13.33 (18.72) (11.06) 5.67
(Of which) Stainless Steel Business Results73.0 64.0 137.0 140.0 (3.0) 134.0 3.0
3.0 (5.0) (2.0) 8.0 (10.0) (4.0) 2.0
1.5
(8.0) (1.5) 1.5
Unrealized holding gains on
investories0.5 (4.0) (3.5) 2.0 (5.5) (5.0)
4.0 (4.0) 0.0 8.0
Net income
Income before special items
FY 2012 Previous forcast
Net sales
Operating income
1st half 2nd half
Income before special items
Net sales
Net income per share (Yen)
Unrealized holding gains on
investories
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Sales condition[Non-consolidated]
3
Sales by major divisions in Japan (Volume basis)
Automotive Construction Electronics Spot Others Total
FY ended March 31, 2012 32% 24% 13% 13% 18% 100%
※ Others:Industrial machineries, Commercial and Home kitchen, etc.
1st half 2nd half
1Q 2Q 3Q 4Q Full year Full year
Ordinary steel, etc. 73 76 149 78 80 158 307 159 150 309Stainless steel 12 13 25 11 13 24 49 25 25 50
Total 85 89 174 89 93 182 356 184 175 359Ordinary steel, etc. 72.3 79.4 151.7 81.9 77.1 159.0 310.7 149.7 147.3 297.0
Stainless steel 37.0 36.0 73.0 31.0 33.0 64.0 137.0 70.0 70.0 140.0Total 109.3 115.4 224.7 112.9 110.1 223.0 447.7 219.7 217.3 437.0
16% 14% 15% 12% 15% 13% 14% 16% 15% 16%
Ordinary steel, etc. (1.1) 0.6 (0.5) 1.4 (2.0) (0.6) (1.1) 4.8 0.7 5.5Stainless steel 2.0 1.0 3.0 (1.5) (3.5) (5.0) (2.0) 5.0 3.0 8.0
(Billions of yen) Total 0.9 1.6 2.5 (0.1) (5.5) (5.6) (3.1) 9.8 3.7 13.5
129 130 129 126 120 123 126 119 125 122
82 78 80 77 80 79 79 89 82 86
Ordinary steel, etc. 77 83 160 79 80 159 319 164 161 325Stainless steel 14 16 30 12 12 24 54 28 29 57
Total 91 99 190 91 92 183 373 192 190 382
FY 2012 FY 20111st half 2nd half
Average sales price of steel products (\1,000/ton)
Export exchange rate (\/US$)
Crude steelproduction(10,000 tons)
Net volume(10,000 tons)
Net sales(Billions of yen)
Export ratio (%)
Income before
special items
Composition of overseas sales
Asia
(execept for China)China Middle East North America Europe Others Total
FY ended March 31, 2012 44% 43% 4% 3% 3% 3% 100%
※ Others:Central and South America, Africa, Australia, etc.
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Income Before Special Items
Differential Breakdown
4
(Billions of yen) (Of which, stainless steel)
18.5 8.0Sales related 18.5 0.0
Purchasing price (36.5) (2.5)
Cost improvement, etc. 12.6 (2.0)
Subsidiaries (0.5) -
Unrealized holding gains on investories (8.0) (5.5)
Total (13.9) (10.0)
4.6 (2.0)
Ex. rate:86→79\/$ FeNi:9.9→10.4$/Lb FeCr:132→133¢/Lb
FY ended March 31,2011Price difference 19.0、Volume and composition difference(0.5)
Consolidated subsidiaries(Domestic)(0 .5)、wheeling-Nisshin(0 .5)、Unconsolidated affiliates 0.5
8.0→0 (Of which Stainless Steel 2.0→(3.5))
Rationalization、Exchange rate, etc.
Breakdown
Iron ore(14.0)、Coking coal(14.5)、Oil(5.0)、Chromium(1.0)、Nickel(1.0)
FY ended March 31,2012
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5
Income Before Special Items
Differential Breakdown
(Billions of yen) (Of which, stainless steel)
1.0 (4.0)Sales related 2.5 0.5
Purchasing price (0.5) 0.0
Cost improvement, etc. 0.1 0.0
Subsidiaries 0.0 -
Unrealized holding gains on investories 1.5 1.5
Total 3.6 2.0
4.6 (2.0)
Ex. rate:78→79\/$ FeNi:10.4→10.4$/Lb FeCr:133→133¢/Lb
Price difference 1.5、Volume and composition difference 1.0
Rationalization、Exchange rate, etc.
FY ended March 31, 2011(Previous Forecast)
Breakdown
FY ended March 31,2012
Iron ore(0.5)
(1.5)→0 (Of which Stainless Steel(5.0)→(3.5))
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Income Before Special Items
Differential Breakdown
6
(Billions of yen) (Of which, stainless steel)
6.8 3.0Sales related (8.5) (7.0)
Purchasing price 5.0 4.0
Cost improvement, etc. 5.5 (0.5)
Subsidiaries (3.0) -
Unrealized holding gains on investories (8.0) (4.5)
Total (9.0) (8.0)
(2.2) (5.0)
Ex. rate:80→79\/$ FeNi:11.6→9.2$/Lb FeCr:138→128¢/Lb
2nd half of ended March 31, 2012
wheeling-Nisshin(0.5)、Unconsolidated affiliates(2.5)
4.0→(4.0) (Of which Stainless Steel 0.5→(4.0))
1st half of ended March 31, 2012 BreakdownPrice difference(8.5)
Iron ore 0.5、Zinc 0.5、Nickel 4.0
Rationalization、Exchange rate, etc.
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Income Before Special Items
Differential Breakdown
7
(Billions of yen) (Of which, stainless steel)
2.2 (1.5)Sales related (8.5) (3.0)
Purchasing price 2.5 1.0
Cost improvement, etc. 0.9 0.0
Subsidiaries (0.5) -
Unrealized holding gains on investories (1.0) 0.0
Total (6.6) (2.0)
(4.4) (3.5)
Ex. rate:77→80\/$ FeNi:10.0→8.3$/Lb FeCr:128→128¢/Lb
Unconsolidated affiliates(0.5)
BreakdownPrice difference(8.5)
Iron ore 0.5、Coking coal 1.0、Nickel 1.0
Rationalization、Exchange rate, etc.
4Q of FY ended March 31, 2012
(1.5)→(2.5) (Of which Stainless Steel(2.0)→(2.0))
3Q of FY ended March 31, 2012
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Balance Sheet
8
(Billions of yen)
VS Mar.31, 2011 VS Mar.31, 2011
Cash on hand and in banks 18.2 (0.1) Interest-bearing debt 268.0 (14.8)Accounts receivale 80.3 (10.2) Deferred tax liabilities 0.9 (0.1)Investories 132.3 (1.2) Other liabilities 164.9 (9.8)Other current assets 15.8 (2.6) Total liabilities 433.9 (24.8)Tangible and Intangible Common stock and additional
fixed assets 232.8 (16.6) paid-in capital 129.8 -Deferred tax assets 8.7 (2.0) Retained earnings 88.5 (7.1)Investments in securities 139.0 (3.4) Tresury stock, at cost (26.4) (0.0)
Accumulated other
comprehensive income (5.0) (4.7)
Minority interests 6.6 0.3Total net assets 193.4 (11.6)
627.4 (36.4) 627.4 (36.4)Total assets Total liabilities and net assets
Debit Credit
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Cash Flows
9
(Billions of yen)
FY 2012 Main factor FY 2011Income before income taxes 1.1
Depreciation and amortization 36.6
Accounts receivable (Decreace) 10.1
Inventories (Decreace) 1.1
Accounts payable (Decreace) (5.2)
Acquisition of tangible fixed assets (20.2)
Decreased debt (14.8)Cash dividends (1.8)
Acquisition of investments in
securities
18.2
(16.8)
(25.1)
42.0
Cash and cash equivalents at end of
year
Cash flows fromfinancing activities
Cash flows from
investing activities
Cash flows from
operating activities
(3.6)(30.1)
24.4
18.3
(16.0)
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Interest-bearing debt and D/E ratio
10
Change in Interest-Bearing Debt and D/E Ratio
Mar-11 Jun-11 Sep-11 Dec-11 Mar-12
Interest-bearing debt (Billions of yen) 2,829 2,897 2,805 2,816 2,680D/E ratio 1.42 1.44 1.42 1.49 1.43〃(based on the credit rating) ※ 1.15 1.17 1.15 1.20 1.15※ Hybrid securities that are accepted as capital according to the credit rating
by the Japan Credit Rating Agency
(Interest payment deferral provision・Unsecured corporate bond with prepayment provision
<subordinated corporate bond-Limited to qualified institutional investors>)
D/E ratio for 5 billion yen, 50% of which is considered to be capital.
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剰余金の配当についてDividends
11
End-of-period dividends are ¥1.5 per share.
(Previous year : ¥2 per share)
[Basic policies regarding dividends]
Our basic policy is to distribute appropriate
surplus according to consolidated resultsand provide stable shareholder returns,while ensuring sufficient internal reservesfor future business development in order toincrease corporate value and taking into
account future financial outlook.
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Forecasts of Operations for the Fiscal
Year ending March 31, 2013
12
The Company has decided against announcing its performance forecast for thenext period since reasonable estimations are difficult to make at this point of time.
Ongoing negotiations of selling prices with customers are complicated with highlyvolatile prices of raw materials and fuels, which can also necessitate changes ininventory valuations.Even in the current circumstances, the Company is committed to securing profits
through achieving appropriate sales prices and thoroughly implementingrationalization and cost reduction programs.The performance forecast will be released as soon as it is made available. Furtherinformation will be provided at the time of announcement of the first-quarterfinancial results.
In addition, the Company and Nippon Metal Industry Co., Ltd. are set to executebusiness integration effective as of October 1, 2012 through establishing a holdingcompany via a joint share transfer.The announcement of performance forecast of the holding company to be
established will be scheduled at a later date.
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References
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Investment and Depreciation
13
Capital expenditures (Tangible)/ Depreciation and amoritization (Billions of yen)FY 2011
1st half 2nd half Full year
Capital expenditures (Tangible) 20.3 7.1 11.4 18.5
Depreciation and amoritization 38.4 18.7 17.9 36.6
FY 2012
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Labor cost and Number of employee
14
1st half 2nd half Full year
Labor cost (non-consolidated)
(Billions of yen) 32.0 17.1 17.0 34.1
Number of employee 6,074 6,089 - 5,989
FY endedMarch
31, 2011
FY ended March 31, 2012
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Purchase Price
15
1st half 2nd half
1Q 2Q 3Q 4Q Full year
Nickel($/lb) 9.9 12.2 11.0 11.6 10.0 8.3 9.2 10.4
Chromium(¢/lb) 132.3 133.0 143.0 138.0 128.0 128.0 128.0 133.0
Molybdenum($/lb) 15.7 17.3 16.7 17.0 14.6 13.4 14.0 15.5Zinc($/t) 2,187 2,254 2,227 2,241 1,897 2,025 1,961 2,101
Oil($/bl) 81.6 111.0 107.6 109.3 106.4 110.8 108.6 109.0
FY endedMarch
31,2011
FY ended March 31, 2012
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Distribution Ownership by Shareholder
Group
16
(Thousands)
% % %
Financial
institutions380,117 38.2% 382,965 38.5% 364,388 36.6%
Securities
companies 12,312 1.2% 8,338 0.8% 14,092 1.4%
Other companies 206,685 20.8% 206,723 20.8% 212,002 21.3%
Foreign 132,571 13.3% 133,036 13.4% 141,902 14.3%
Treasury stock 89,113 9.0% 89,130 9.0% 89,139 9.0%
Individuals 173,702 17.5% 174,308 17.5% 172,977 17.4%
Total
Ended March 31,2011 Ended September 31,2011 Ended March 31,2012
994,500
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Quarterly Operating Results
17
[Consolidated] (Billions of yen)
FY 2011 1st half 2st half
1Q 2Q 3Q 4Q Full year
Net Sales 557.8 136.9 143.4 280.3 141.2 136.3 277.5 557.8
Operating income 7.0 2.9 4.4 7.3 2.5 (2.8) (0.3) 7.0
Income before special items 4.6 3.4 3.4 6.8 2.2 (4.4) (2.2) 4.6
Net income (4.8) 2.1 1.8 3.9 (1.7) (7.0) (8.7) (4.8)
Unrealized holding gains on investories 0.0 3.0 1.0 4.0 (1.5) (2.5) (4.0) 0.0
[Non-Consolidated] (Billions of yen)
Net sales Ordinary steel, etc. 297.0 72.3 79.4 151.7 81.9 77.1 159.0 310.7
Stainless steel 140.0 37.0 36.0 73.0 31.0 33.0 64.0 137.0
Total 437.0 109.3 115.4 224.7 112.9 110.1 223.0 447.7
Operating income 19.4 1.7 3.8 5.5 1.4 (4.5) (3.1) 2.4
Ordinary steel, etc. 5.5 (1.1) 0.6 (0.5) 1.4 (2.0) (0.6) (1.1)Stainless steel 8.0 2.0 1.0 3.0 (1.5) (3.5) (5.0) (2.0)
Total 13.5 0.9 1.6 2.5 (0.1) (5.5) (5.6) (3.1)
Net income 10.3 0.4 0.5 0.9 (3.2) (8.0) (11.2) (10.3)
Ordinary steel, etc. 6.0 2.0 1.5 3.5 0.5 (0.5) 0.0 3.5
Stainless steel 2.0 1.0 (0.5) 0.5 (2.0) (2.0) (4.0) (3.5)Total 8.0 3.0 1.0 4.0 (1.5) (2.5) (4.0) 0.0
Unrealized holding
gains on
investories
Income before
special items
FY 2012
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Contact:
Public & Investor Relations Team,
General Administration & Risk Management Dept.
Nisshin Steel Co., Ltd.
Tel:+81 3 3216 5566
This presentation is not a disclosure document compliant with the FinancialInstruments and Exchange Law. Nisshin Steel makes no guarantee as to the
accuracy or completeness of the information contained.This presentation was created based on the contents of business results for thefiscal year ended March 31, 2012, announced on April 27, 2012. Forward-lookingstatements regarding the plans, strategies and business results contained in this
presentation may differ from actual results due to a variety of significant factors,including domestic and foreign politico-economic conditions, steel demand in majormarkets, and changes in laws and regulations. Consequently, Nisshin Steel advisesreaders not to make investment decisions based solely on this material. NisshinSteel assumes no liability for losses incurred as a result of using this presentation.