P.65 Steel Group

65 03. Performance & Data

Steel Group

Leverage our global steel product supply chain to create new functions and value through the use of digital and AI.

• Main relevant material issues
• Katsuya Inubushi Group CEO, Steel Group

▍Quantitative information

• 1,000　750　500　250　0
• 15　10　5　0

FY2025 Investment｜Approx. ¥8.0 billion

Main investment areas

• Manufacturing business for the foundation of offshore wind power generation (monopile) in Europe
• High-value-added specialty steel business in India
• Acquisition of Canadian OCTG distributor

Major asset replacement

• Divestiture of Sekal AS

▍External Environment: Business Environment Opportunities

• Pursuing growth in the U.S. and India, where steel demand is expected to increase
• Increasing demand for steel materials and equipment that fosters stable energy supplies
• Increasing demand for steel products related to decarbonization and the green circular economy

Risks

• Global steel supply-demand imbalance
• U.S. tariff measures
• Deterioration in economic and social conditions due to geopolitical risks

▍Internal Environment: Key Strengths

• Expertise, solution capabilities, and an extensive customer network in steel products and tubular products
• Global development of a strong supply chain firmly rooted in each region
• One of the worldʼs largest oil country tubular goods (OCTG) distribution businesses and strategic partnerships with energy majors
• Leading market shares in unique segments such as railway products
• Addressing geopolitical risks through a regional portfolio strategy

▍Business Strategy

• Engage in global supply chain management for steel products to swiftly address changes in the global steel industry and thus strengthen and expand business
• Strengthen regional sales capabilities and manage inventory risk to improve resilience to market volatility
• Enhance the supply chain through DX and AI technologies

▍Medium-Term Management Plan 2026 Initiatives in final year of medium-term management plan

• Invest in a monopile (foundation of offshore wind power generation) manufacturing business in Europe to help realize a decarbonized society through the greening of the supply chain
• Actively strengthen and expand asset replacement focused on growth businesses to improve ROIC
• Introduce an AI platform to improve asset efficiency and enhance business processes across the supply chain

Initiatives for next medium-term management plan

• Continue promoting asset replacement while expanding investment in growth markets and enhancing procurement and sales capabilities through the use of digital technologies and AI
• Expand our existing strength (our global supply chain)

while further enhancing capabilities and expanding business across a broad range of industrial sectors

▍Business Development

A global network with unrivaled strengths in steel products and tubular products

• Energy　Automotive　Building materials　Electrical equipment　Railways
• Supply of steel pipes for energy development in the North Sea
• Manufacturing business for the foundation of offshore wind power (monopile)
• U.S. railway materials and equipment
• Steel service center operations worldwide
• Supply of oil country tubular goods (OCTG)

and line pipe to major energy companies

• Special steel manufacturing business in India
• Steel pipe recycling business in North America

▍Key Market Trends

We will strengthen and expand the foundation of our global steel product supply chain by capturing opportunities from rising steel demand, particularly in markets with strong growth potential.

Global crude steel production outlook (Millions of tons)

• China　India　United States　ASEAN　Others
• 2,500　2,000　1,500　1,000　500　0
• 2025 2030 2035 2040 (Year)

Source: Wood Mackenzie* * The data and information provided by Wood Mackenzie should not be interpreted as advice, and you should not rely on it for any purpose. You may not copy or use this data and information except as expressly permitted by Wood Mackenzie in writing. To the fullest extent permitted by law, Wood Mackenzie accepts no responsibility for your use of this data and information except as specified in a written agreement you have entered into with Wood Mackenzie for the provision of such data and information.