Nippon Steel: AGM materials contain targets for US Steel and other new information Quick Note

Research evidence excerpt

Nippon Steel: AGM materials contain targets for US Steel and other new information Quick Note

Global Markets Research

25 June 2026Nippon Steel

5401.T 5401 JP / EQUITY: JAPAN STEEL, NONFERROUS METALS, WIRE & CABLE

AGM materials contain targets for US Steel and Rating Buyother new information

Target price JPY 740Quick Note

Closing price

24 June 2026 JPY 547.2Management assumes a US hot-rolled coil price of just over $1,050/t, whereas the

price is currently in the mid-$1,200/t range (Note: Quick Note reports are not a

Nippon Steel held its annual general meeting of shareholders (AGM) on 23 June and vehicle for changes to ratings, target

posted the materials from the meeting on its website at that time. Some figures that to prices, or earnings forecasts)

date had only been mentioned verbally or in graphs have now been explicitly spelled out.

We consider the following to be new information. (1) The company presented a chart

showing the US hot-rolled coil price assumption used in 27/3 guidance for US Steel (page

18). (2) The company noted that the 31/3 underlying profit target for US Steel is around

Research Analysts¥300bn (page 19). (3) The company listed its 31/3 target for profits attributable to owners

of the parent as ¥430bn (page 31; assuming factors other than underlying profits are in Japan steel, nonferrous metals,

line with its 27/3 outlook). wire & cable

Yuji Matsumoto - NSC

For item (1), the company is assuming a US hot-rolled coil price of just over $1,050/t, yuji.matsumoto@nomura.com

whereas the current price is in the mid-$1,200/t range. Management is guiding for +81 3 6703 1220

underlying profits at US Steel of at least ¥100bn in 27/3. The price of hot-rolled coil is

currently just over 10% higher than the company has assumed. We think this therefore