Nisshin Steel : Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

平成２３年度　決算の概要

May 9, 2016

Overview

• Amid weak domestic demand and worsening export environment, domestic steel inventory remained high. We tailored our production and sales to actual demand so as to optimize the inventory. As a result, our crude steel output totaled 3.79 million tons and sales 3.58 million tons (down 190,000 and 230,000 tons respectively from the previous period).

  • While our current consolidated performance had sales of ¥547 billion and ordinary income of

    ¥6.2 billion (down ¥70.5 billion and ¥13.4 billion respectively from the previous period) mainly due to reduced sales volume and inventory valuation loss caused by falling raw materials prices, ordinary income with the inventory valuation loss excluded came to ¥19.7 billion (up

    ¥0.1 billion from the previous period) and the same earnings level as the previous period was maintained.

  • Our stainless steel business, negatively impacted by inventory valuation loss and lackluster performance of overseas subsidiaries, did not fare well, posting ordinary loss of ¥11 billion and ordinary loss excluding the inventory valuation loss of ¥2 billion (down ¥14.5 billion and

    ¥3 billion respectively from the previous period).

  • In addition, as our overseas investment companies had to record loss on devaluation of investments in securities due to temporary factors including declines in raw materials prices, profit attributable to owners of parent totaled ¥6.6 billion (down ¥23.5 billion from the previous period).

（Billions of yen）

No	FY2016		FY2015 (Actual) c
	(Actual) a	(Forecast) b
Net sales		1	547.0	549.0	617.5
Operating income		2	10.0	11.0	21.0
Ordinary income	Ordinary steel / Special steel	3	17.2	17.0	16.1
	Stainless steel	4	(11.0)	(10.5)	3.5
Total		5	6.2	6.5	19.6
Profit attributable to owners of parent		6	(6.6)	1.0	16.9

Difference
（ⅰ） a-b	（ⅱ） a-c
(2.0)	(70.5)
(1.0)	(11.0)
0.2	1.1
(0.5)	(14.5)
(0.3)	(13.4)
(7.6)	(23.5)

Inventory evaluation	Ordinary steel / Special steel	7	(4.5)	(6.0)	(2.5)
	Stainless steel	8	(9.0)	(8.0)	2.5
Total		9	(13.5)	(14.0)	0.0

1.5	(2.0)
(1.0)	(11.5)
0.5	(13.5)

No	FY2016		FY2015 (Actual) c
	(Actual) a	(Forecast) b
Crude steel production (10,000tons)	Ordinary steel / Special steel	1	314	319	327
	Stainless steel	2	65	66	71
Total		3	379	385	398
Sales volume (10,000tons)	Ordinary steel / Special steel	4	306	304	321
	Stainless steel	5	52	53	60
Total		6	358	357	381
Average sales price of steel products(1,000yen/tons)		7	117	118	127
Export ratio(monetary basis;%)		8	15	15	17
Export exchange rate(yen/US$)		9	120	121	109

Difference
（ⅰ） a-b	（ⅱ） a-c
(5)	(13)
(1)	(6)
(6)	(19)
2	(15)
(1)	(8)
1	(23)
(1)	(10)
0	(2)
(1)	11