Nisshin Steel : Consolidated Financial Results for the First Nine Months of the Fiscal Year Ending March 31, 2015 (Presentation Materials)

(Presentation Materials) （１／３）
05-Feb-15
Nisshin Steel Co., LTD.
Ⅰ. Consolidated Financial Results for the First Nine Months of the Fiscal Year Ending March 31, 2015 (FY2015)
1. Consolidated Operating Results

（Billions of yen）

No	FY2015
No	1Q (Actual) a	2Q (Actual) b	3Q (Actual) c	(Actual) d
Net sales	1	151.0	159.8	148.9	459.7
Operating income	2	2.2	6.7	6.5	15.4
Ordinary income	Ordinary steel / Special steel	3	2.2	5.1	5.2	12.5
Ordinary income	Stainless steel	4	(1.0)	2.0	3.5	4.5
Total	5	1.2	7.1	8.7	17.0
Net income	6	0.0	5.2	7.7	12.9

1.5 (1.0)

0.5

2. Other Information

No	FY2015
No	1Q (Actual) a	2Q (Actual) b	3Q (Actual) c	(Actual) d
Crude steel production (10,000tons)	Ordinary steel / Special steel	1	82	86	80	248
Crude steel production (10,000tons)	Stainless steel	2	20	19	16	55
Total	3	102	105	96	303
Sales volume (10,000tons)	Ordinary steel / Special steel	4	80	80	78	238
Sales volume (10,000tons)	Stainless steel	5	15	17	13	45
Total	6	95	97	91	283
Average sales price of steel products(1,000yen/tons)	7	124	130	126	127
Export ratio(monetary basis;%)	8	17	18	16	17
Export exchange rate(yen/US$)	9	102	104	114	106

3. Breakdown of Differences in Ordinary Income
ⅰ）2Q of FY2015(Actual) vs 3Q of FY2015(Actual)

（Billions of yen） (Of which stainless steel)

2Q of FY2015(Actual)	7.1	Breakdown	2.0
Sales related Purchasing price Cost improvement, etc. Subsidiaries, etc. Inventory evaluation	1.0 1.0 0.1 (1.0) 0.5	Price difference 2.0, Volume and composition difference (2.0), Export exchange difference 1.0 Iron ore 1.5, Nickel 1.5, Import exchange difference (2.5) Rationalization, etc. Unconsolidated affiliates, etc. 1.0→1.5　（Of which, stainless steel 2.0→1.0)	2.0 0.5 1.0 (1.0) (1.0)
Total	1.6	1.5
3Q of FY2015(Actual)	8.7	3.5

（２／３）

4. Consolidated Balance Sheet（December 31, 2014）

vs Mar 31,2014
Cash on hand and in banks Accounts receivable Inventories Other current assets Tangible and intangible fixed assets Investments in securities, etc.	22.6 76.0 159.1 27.9 272.8 179.1	(18.2) (3.3) 15.5 (9.5) 4.8 6.8
Total assets	737.8	(3.8)

Ⅱ．Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2015 (FY2015)

1. Consolidated Earnings Forecasts

No	FY2015	FY2015 (Previous forecast) d	FY2014 (Actual) e
No	1st half (Actual) a	2nd half (Forecast) b	(Forecast) c	FY2015 (Previous forecast) d	FY2014 (Actual) e
Net sales	1	310.8	304.2	615.0	617.0	576.4
Operating income	2	8.9	13.1	22.0	19.5	16.5
Ordinary income	Ordinary steel / Special steel	3	7.3	8.7	16.0	13.0	12.7
Ordinary income	Stainless steel	4	1.0	3.0	4.0	2.5	7.0
Total	5	8.3	11.7	20.0	15.5	19.7
Net income	6	5.2	10.8	16.0	13.0	17.7

Inventory evaluation	Ordinary steel / Special steel	7	(1.5)	(0.5)	(2.0)	(3.0)	2.5
Inventory evaluation	Stainless steel	8	2.5	0.5	3.0	3.0	1.5
Total	9	1.0	0.0	1.0	0.0	4.0

2. Other Information

（Billions of yen）

（Billions of yen）

No	FY2015	FY2015 (Previous forecast) d	FY2014 (Actual) e
No	1st half (Actual) a	2nd half (Forecast) b	(Forecast) c	FY2015 (Previous forecast) d	FY2014 (Actual) e
Crude steel production (10,000tons)	Ordinary steel / Special steel	1	168	160	328	333	318
Crude steel production (10,000tons)	Stainless steel	2	39	33	72	74	75
Total	3	207	193	400	407	393
Sales volume (10,000tons)	Ordinary steel / Special steel	4	160	159	319	322	309
Sales volume (10,000tons)	Stainless steel	5	32	29	61	61	60
Total	6	192	188	380	383	369
Average sales price of steel products(1,000yen/tons)	7	127	127	127	125	123
Export ratio(monetary basis;%)	8	17	16	17	16	16
Export exchange rate(yen/US$)	9	103	114	108	104	100

3. Breakdown of Differences in Ordinary Income
ⅰ）FY2015(Previous forecast) vs FY2015(Forecast)

（Billions of yen） (Of which stainless steel)

FY2015(Previous forecast)	15.5	Breakdown	2.5
Sales related Purchasing price Cost improvement, etc. Subsidiaries, etc. Inventory evaluation	4.5 (1.0) 0.5 (0.5) 1.0	Price difference 2.5, Volume and composition difference (1.0), Export exchange difference 3.0 Iron ore 1.5, Nickel 2.0, Oil 2.0, Im port exchange difference (6.0) Rationalization, etc. Unconsolidated affiliates, etc. 0.0→1.0　（Of which, stainless steel 3.0→3.0)	2.0 (0.5) 0.5 (0.5) 0.0
Total	4.5	1.5
FY2015(Forecast)	20.0	4.0

（３／３）
ⅱ）FY2014(Actual) vs FY2015(Forecast)

（Billions of yen） (Of which stainless steel)

FY2014(Actual)	19.7	Breakdown	7.0
Sales related Purchasing price Cost improvement, etc. Subsidiaries, etc. Inventory evaluation	16.0 (8.0) 1.8 (6.5) (3.0)	Price difference 9.0, Volume and composition difference 3.0, Export exchange difference 4.0 Iron ore 12.0, Coking coal (6.0), Oil 2.5, Nickel (8.0), Import exchange difference (19.0) Rationalization, etc. Overseas consolidated subsidiaries (4.0), Unconsolidated affiliates, etc. (2.5) 4.0→1.0　（Of which, stainless steel 1.5→3.0）	15.5 (15.0) 1.5 (6.5) 1.5
Total	0.3	(3.0)
FY2015(Forecast)	20.0	4.0

4. Cash Dividends
We have decided to pay year-end cash dividend of ¥40.0 per share for stable shareholder returns.
(Reference 1) Interest-Bearing Dept and Net D/E Ratio

31-Mar-13	31-Mar-14	31-Dec-14
Cash on hand and in banks(Billions of yen)	43.2	40.8	22.6
Interest-bearing debt(Billions of yen)	333.5	323.5	292.9
Net D/E ratio	1.69	1.36	1.18
〃　 (based on the credit rating) ※	1.35	1.11	1.01

※Net D/E ratio with 50% of the principal of hybrid securities/hybrid loans,

which receive equity credit from Japan Credit Rating Agency, deemed as capital. (50% of 50 billion yen each at the end of March of 2013 and 2014,

as well as 50% of 40 billion yen at the end of December of 2014 entered as capital respectively)

(Reference 2) Change of Operating Income

(Billions of yen)

FY2013 (Actual)	FY2014 (Actual)	FY2015 (Forecast)
Operating income	(21.9)	16.5	22.0
Inventory evaluation	(8.5)	4.0	1.0
Operating income (excluding inventory evaluation) ※	(13.4)	12.5	21.0

※ FY2013 results include Nippon Metal Industry's first 6-months figure

(Operating income:(5.1), Inventory evaluation:(0.5))

END