Nippon Steel Trading : 〔Delayed〕Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2022

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation, nor for direct, indirect, or any other form of damages that may arise from use of this translation.

Summary of Consolidated Financial Results

for the First Quarter of the Fiscal Year Ending March 31, 2022

(Japanese GAAP)

		August 2, 2021
		Stock Exchange: Tokyo
Listed company name:	NIPPON STEEL TRADING CORPORATION
Code No.:	9810
URL:	https://www.nst.nipponsteel.com/en/
Representative name:	Yasumitsu Saeki, President and Representative Director
Tel.:	[phone]
Quarterly securities report to be submitted:	August 5, 2021
Start of cash dividend payments:	-
Supplementary materials:		Yes (Japanese only)
IR conference:		None

(Figures rounded down to nearest million yen)

1. Consolidated Earnings through the First Quarter of the Fiscal Year Ending March 31, 2022 (April 1, 2021 to June 30, 2021)

(1) Consolidated Operating Results (Cumulative)

(%: change from the same period of the previous year)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

1Q FYE March 31, 2022

388,306

31.8

8,726

104.1

9,944

112.3

6,656

140.8

1Q FYE March 31, 2021

294,647

−

4,275

−

4,683

−

2,763

−

Note: Comprehensive income

¥9,759 million (−%)

1Q FYE March 31, 2022:

1Q FYE March 31, 2021:

¥718 million (−%)

Earnings per share

Diluted earnings per share

Yen

Yen

1Q FYE March 31, 2022

206.35

−

1Q FYE March 31, 2021

85.68

−

• As we have applied the changes in the accounting policies retrospectively, the financial figures shown for the first quarter of the fiscal year ended March 2021 are the figures after the retrospective application. The percentage change from the same period of the previous year is not shown.

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio
	Millions of yen	Millions of yen	%
As of June 30, 2021	928,909	283,649	28.0
As of March 31, 2021	883,285	278,090	28.9

Reference: Equity capital
As of June 30, 2021:	¥260,406 million
As of March 31, 2021:	¥255,389 million

• As we have applied the changes in the accounting policies retrospectively, the financial figures shown for the fiscal year ended March 2021 are the figures after the retrospective application.

2.	Dividends
					Annual dividends per share
			1Q		2Q		3Q		Fiscal year end	Total
				Yen	Yen		Yen		Yen	Yen
	FYE March 31, 2021		−	50.00		−		110.00	160.00
	FYE March 31, 2022		−
	FYE March 31, 2022			145.00		−		115.00	260.00
	(Est.)
Note:	Revisions of dividends projections since most recent announcement: Yes

3. Projected Consolidated Results for Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

						(%: change from the same period of the previous year)
	Operating profit		Ordinary profit		Profit attributable to		Earnings per share
			owners of parent
	Millions of yen		%	Millions of yen		%	Millions of yen	%		Yen
First six months	19,000		129.1	20,500		112.6	14,500	175.2		449.53
Full fiscal year	37,000		65.5	39,000		51.3	26,000	62.6		806.05

Note: Revisions of earnings projections since most recent announcement: Yes

• As we have applied the changes in the accounting policies retrospectively, the percentage change from the same period of the previous year is calculated using the figures after the retrospective application.

* Notes

1. Material changes in consolidated subsidiaries during the period (changes in specific subsidiaries resulting in changes in scope of consolidation): None
2. Use of special accounting methods for creating quarterly consolidated financial statements: None
3. Changes of accounting policies, changes of accounting estimates and retrospective restatements
4. 1. Changes in accounting policies resulting from changes in accounting standards, etc.: Yes
   2. Other accounting policy changes: None
   3. Changes in accounting estimates: None
   4. Restatements: None
5. Number of shares outstanding (common shares)
6. 1. Number of shares outstanding at the end of the period (including treasury shares)

As of June 30, 2021	32,307,800 shares
As of March 31, 2021	32,307,800 shares
ii. Number of treasury shares at the end of the period
As of June 30, 2021	51,943 shares
As of March 31, 2021	51,577 shares

iii. Average number of shares during the period (cumulative from the beginning of the fiscal year)

1Q FYE March 31, 2022	32,256,068 shares
1Q FYE March 31, 2021	32,257,612 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Explanation for the proper use of earnings projections, and other special matters

(Caution on description of future events, etc.)

The preceding projections are based on information available at the time of the publication of these materials, and are not intended as pledges on the part of the Company that the said projections will be achieved. Actual results may differ materially from projections due to various factors that may occur in the future. For the assumptions on which these earnings projections were based, see "1. Qualitative Information on Quarterly Settlement of Accounts, (3) Explanation of Consolidated Earnings Projections and Other Forecasts" on page 3 of the attachment.

(How to acquire supplementary materials)

Supplementary materials were published on TDnet as of August 2, 2021, and they were published on the Company's website on the same date.

NIPPON STEEL TRADING CORPORATION (9810)

Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2022

Index of attached documents

1. Qualitative Information on Quarterly Settlement of Accounts.............................................................................................	2
(1)	Explanation of Operating Results ..................................................................................................................................	2
(2)	Explanation of Financial Position ..................................................................................................................................	2
(3)	Explanation of Consolidated Earnings Projections and Other Forecasts .......................................................................	3
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto......................................................................	4
(1)	Quarterly Consolidated Balance Sheets .........................................................................................................................	4
(2)	Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income.....	6
	(Quarterly Consolidated Statements of Income) ............................................................................................................	6
	(Quarterly Consolidated Statements of Comprehensive Income) ..................................................................................	7
(3)	Notes on Quarterly Consolidated Financial Statements .................................................................................................	8
	(Notes on Going Concern Assumption).........................................................................................................................	8
	(Notes in Case of Significant Changes to Shareholders' Equity)...................................................................................	8
	(Changes in Accounting Policies)..................................................................................................................................	8
	(Additional Information)................................................................................................................................................	8
	(Segment Information, etc.) ...........................................................................................................................................	9

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NIPPON STEEL TRADING CORPORATION (9810)

Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2022

1. Qualitative Information on Quarterly Settlement of Accounts

Forward-looking statements in this document are based on our views as of the end of the quarter under review.

The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations have been applied from the beginning of the first quarter under review. The Company has compared with the same period of the previous fiscal year and with the previous fiscal year and analyzed the data using the figures after applying the accounting standard and relevant ASBJ regulations.

1. Explanation of Operating Results
   Although there were some regional variations, the world economy was on the road to recovery in general for the first three months of the fiscal year ending March 31, 2022. There was a recovery of economic activity and employment in the United States due to increased COVID-19 vaccinations and additional economic measures, and so forth, and there were improvements in infrastructure investment and exports in China.
   In the Japanese economy, although personal consumption was somewhat lackluster due to the renewed spread of COVID-19, there was increased activity in the manufacturing industry and other areas and the overall trend indicated a recovery.
   In this business environment, the Group has been working hard to implement the medium- to long-term management plan, and the Company's consolidated earnings for the first three months under review, as compared with the same period of the previous fiscal year, were as follows: Net sales were ¥388.3 billion, up ¥93.6 billion (31.8%). Operating profit was ¥8.7 billion, up ¥4.4 billion (104.1%) and ordinary profit was ¥9.9 billion, up ¥5.2 billion (112.3%). Profit attributable to owners of parent was ¥6.6 billion, up ¥3.8 billion (140.8%).
   Earnings for reportable segments are as below.
   (Steel)
   In the Steel business, net sales increased by 36.3%, or ¥86.1 billion year on year, to ¥323.4 billion, and ordinary profit increased by 81.7%, or ¥3.7 billion, to ¥8.3 billion, thanks to improved domestic steel demand for the manufacturing industry, etc., and also to higher steel prices mainly for exported steel.
   (Industrial Supply and Infrastructure)
   In the Industrial Supply and Infrastructure business, net sales increased by 31.2%, or ¥4.6 billion year on year, to ¥19.4 billion. In addition, due to elimination of the loss from revaluation of investment securities at a Thailand-based equity method affiliate in the same period of the previous fiscal year, and due to some other reasons, ordinary profit improved by ¥900 million to ¥800 million.
   (Textiles)
   In the Textiles business, the management environment still remained harsh, with the state of emergency being reinstated in the first quarter under review, and business performance was flat year on year, with net sales of ¥20.5 billion and ordinary loss of ¥200 million.
   (Foodstuffs)
   In the Foodstuffs business, due to strong meat sales, etc., net sales increased by 9.9%, or ¥2.2 billion year on year, to ¥24.7 billion, and ordinary profit increased by 115.9%, or ¥500 million, to ¥900 million.
2. Explanation of Financial Position
   Total assets at the end of the first quarter under review increased by ¥45.6 billion from the end of the previous fiscal year to ¥928.9 billion, due to an increase in accounts receivable - trade, despite a decrease in cash and deposits.
   Total liabilities increased by ¥40.0 billion from the end of the previous fiscal year to ¥645.2 billion, due to increases in accounts payable - trade, short-term borrowings, and commercial papers.

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