Business Plans

Management Plans and Organizational Reshuffling

1970 Nippon Steel Corporation was inaugurated. 1974 Engineering Divisions Group was organized. 1977 Project Planning & Development Bureau was organized. 1978 First Modernization Plan To rationalize annual crude steel production setup

from 47million tons to 36 million tons by 1980 Major equipment closure. One large section mill each at Kamaishi and Yawata Works, one plate mill at Hirohata Works

Entire organization was classified into basic five units:head office, steelworks, companywide unit, engineering business and development business. 1981 The technical department was reorganized to establish the Technical Development Bureau and the Central R&D Bureau. 1982 Second Modernization Plan To urgently meet the annual crude steel production The personnel system was scale of 28 million tons reorganized to a three-tier position Major equipment closure One blast furnace each at system. Muroran, Hirohata and Sakai Works 1979 1984 Third Modernization Plan Nippon Steel Chemical Co., Ltd. was inaugurated through the merger of Nippon Steel Chemical Co., Ltd. and Nittetsu Chemical Industrial Co., Ltd. To realize the production scale appropriate for the medium-term annual crude steel production of 27 to 28 million tons Major equipment closure One large section mill each at Muroran and Hirohata Works, one blast furnace at Kamaishi Works, one hot- rolling mill at Sakai Works

Business Plans

1985 1986 1987

1988 1989 1990

The articles of incorporation were changed to become a comprehensive materials maker with the establishment of the New Materials Projects Bureau and the Titanium Div. The Engineering Divisions Group was shifted to the divisional operating system. The New Business Planning & Development Div.was organized. Electronics Division was organized. First Medium-Term Business Plan Plan duration Four years from 1987 to 1990* (Fourth Modernization Plan) To realize the production system that can secure The articles of incorporation were profits even if annual crude steel production in 1990* changed to promote multipledropped to 24 million tons Major equipment closure business management with the One blast furnace each at Yawata, Kamaishi, establishment of the Electronics & Hirohata, Muroran and Sakai Works Information Systems Division, New To propose the medium- and long-term visions for Materials Division, Service multiple-business management (change of Business Division and operating structures) Biotechnology Business Division. The Electronics & Information Systems Division was spun-off to establish Nippon Steel Information & Communication Systems Inc. Urban Development Division was organized. Space World opened.

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1991 Second Medium-Term Business Plan Technical Development Bureau was organized and R&E Center was completed as an organization to integrate research, development and engineering. Nippon Steel Fellow System was introduced.

Plan duration Three years from 1991 to 1993* Basic policies Strengthening of the competitiveness of the steel business Promotion of electronics and information systems, urban development and building construction as a major force to expand new businesses Realization of the worlds most competitive steel business Development of new products Innovation in production and logistics systems New equipment investment of more than 600 billion in three years Improvement of labor productivity by 15%

Business Plans

1993 1994

Nippon Steel Semiconductor Corporation was established and the LSI Division was organized. Third Medium-Term Business Plan durationThree years from 1994 to 1996* Plan 1. Restructuring of international competitiveness of Corporate Policy Committee the steel business was organized. Restructuring of cost performance superior to that of the strongest competitor (Cost reduction by 300 billion) Structuring of the 20,000 employee organization 2. Restructuring of management software Slimming-down of head office functions (leaner head office) Integration of sales and technical divisions and product-wise divisional operations 3. Strengthening and promotion of multiplebusiness management and group strategies 4. Incessant efforts for market development

1995 The articles of incorporation were changed to add electricity supply to the business line. 1997 Medium-Term Business Plan Plan duration Three years from 1997 to 1999* The personnel system was revised 1. Structuring of multiple-business management (reduction of positions and 2. Innovation of management software introduction of group system). 3. Strengthening of consolidated management Stainless Steel Division was 4. Creation of new demands and development of organized. new markets Business divisions of the Management targets Engineering Divisions Group were Securing of appropriate ordinary profits (ordinary reorganized. profits of more than 100 billion/year on a stable basis) Strengthening of financial structure Consolidated sales of 3,050 billion for 1999* 1998 The Engineering Divisions Group was positioned as an autonomous company in management and operation.

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2000

Medium-Term Consolidated Business Plan

Plan durationThree years from 2000 to 2002* 1. Strong consolidated business and robust Nippon Steel group 2. Strengthening of consolidated management for improved consolidated business results ---Invigoration of consolidated management to realize the medium-term consolidated business plan--(Target 2002* (Consolidated)) Ordinary profit 180 billion Free Cash Flow 500 billion/ 3year ROS 7.5%, ROA 5.5%
Business Plans

2001

Organizational and operating systems of the steel business were examined to promote divisionally integrated operations within the group based on product item or business area. The articles of incorporation were changed to add gas supply and wastes treatment/recycling to the business line. Operations of Nippon Steel's Electronics and Information Systems Division and its subsidiary Nippon Steel Information & Communication Systems Inc. were integrated to organize NS Solutions Corporation. All operations of Nippon Steel's Urban Development Division were integrated into Nippon Steel City Produce, Inc. (change of the company name from Nippon Steel Life Planning Co., Ltd. in April 2001). The articles of incorporation were changed to add manufacture and sale of machinery and equipment, such as environmental plants, water supply and sewage - related facilities, and supply of heat and other energy to the business line. Medium-Term Consolidated Plan durationThree years from 2003 to 2005* Business Plan 1. Substantial improvements of its financial structure 2. Completion of selection and concentration of its business segment, and enhancement of overall efficiency 3. Investment decision aimed at improving both quality and capacity in high value-added market segments that will bring future profit growth in its steel business (Target 2005* (Consolidated)) Ordinary profit Approx. 250 billion ROS Approx. 9% ROA Approx. 9% Interest bearing debt Approx. 1,600 billion Shareholders' equity Approx. 1,000 billion The articles of incorporation were changed to add manufacture and sale of electronic components to the business line. Nippon Steel & Sumikin Stainless Steel Corporation was established. Business divisions of the Engineering Divisions Group were reorganized.

2002

2003

2004

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2006 Medium-Term Consolidated Business Plan

Plan durationThree years from 2006 to 2008* 1. Completion of our Group's 40 million ton crude steel production base 2. Implementation of "Global Player Strategy" 3. Enhancement of our alliance network with domestic and overseas steel manufacturers 4. Construction of a strong group management system uniting our six business segments' strengths together 5. Strengthening of financial position (Acquisition of international rating A1) (Target 2008* (Consolidated)) Net Sales Approx. 4,200 billion Ordinary profit 500 billion or more Net income 300 billion or more (EPS 44 or more per share) ROA Approx. 12% Interest bearing debt 1,000 billion or less Debt Equity ratio 0.5 or less Capex, investing & financing Approx. 850 billion per three years

Business Plans

Amendments to the Articles of Incorporation Amendments in relation to the new Company Law, Amendments to the provisions related to the Board of Directors and the Corporate Auditors. Introduction of the Executive Management System. Nippon Steel Engineering Co., Ltd. and Nippon Steel Materials Co., Ltd. were established. 2010 Medium-Term Management Plan Plan durationThree years from 2009 to 2011* 1. "Reinforcing our corporate strengths and establishing a secure revenue base" and building a stronger global production and supply base in the Steel Industry 2. Maximizing the synergy of NSC group 3. Policies relating to Global Warming 4. Policies to be a Trusted and Reliable Company 5. Laying grounds for a New Growth Path Further strengthen our competitive edge Structure of global tri-polar (Domestic, Asia, American and Pan-Atlantic) production and processing bases (Envisaging a global capacity of 50 to 60 million tons) Realizimg a "Global Corporate Group"
* Fiscal years(twelve-month period beginning April 1 of the years specified)

2011

Integration Oita Works and Hikari Pipe & Tube Division

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Operation of Blast Furnaces

Works Fourth Modernization Plan 1 0 (units) 10 10 10 21 22 23 22 12 8

Muroran Kamaishi Hirohata Sakai Yawata Nagoya Kimitsu Oita Total

BFs in operation as of July 1, 2012 1 (units) 0 0 0 1 2 3 2 9

Reference Succeeded to Hokkai Iron & Coke in April 1994 Closed on March 25, 1989 Closed on June 27, 1993 Closed on March 24, 1990 One of the two BFs closed on December 25, 1988 Three BF operation system from July 4, 1988 (including Hokkai Iron & Coke)
Business Plans

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