Dividend

Basic Policy concerning Stock Dividends

Nippon Steel' s policy is to distribute profits consistent with the consolidated operating results of each fiscal year in principle, taking into account various factors such as capital requirements for investment and other activities aimed at raising corporate value, prospects for future operating results and other relevant factors and by endeavoring to further reinforce the company' s financial structure. Meanwhile, the company has set the consolidated payout ratio at approximately 20% (non-consolidated payout ratio at approximately 30%) as an indicator for the distribution of profits in conformance with the consolidated operating results. However, because the company' s first priority for the time being is to improve the corporate financial structure, a target of approximately 15-20% is in effect for the consolidated payout ratio (non-consolidated payout ratio at approximately 20-30%), which is slightly lower than the above-indicated level.

Term-end dividend Plan

The Company distributes year-end dividend payments in consideration of the consolidated business performance as the basic profit distribution policy. The Company forecasts a \15.0 billion consolidated net loss for the current fiscal year, largely as a consequence of the sudden fluctuations in business conditions following the Lehman shock in 2008.
However, in consideration of the current recovery trend in the Company's business results and the financial outlook,
the Company has adopted a policy of paying a fiscal 2009 year-end dividend of \1.5 per share.(as of January 2010)

Transition of Dividend per Share