Nippon Steel & Sumitomo Metal : Notice concerning Planned Partial Sale of Sumitomo Precision Products Shares and Subsequent Change in Scope of NSSMC’s Equity-Method Affiliates

March 27, 2017 Nippon Steel & Sumitomo Metal Corporation

Notice concerning Planned Partial Sale of Sumitomo Precision Products Shares and Subsequent Change in Scope of NSSMC's Equity-Method Affiliates

Today, Nippon Steel & Sumitomo Metal Corporation ("NSSMC") has decided to sell a part of its shareholding in Sumitomo Precision Products Co., Ltd. ("Sumitomo Precision Products"; Code Number 6355, First Section of the Tokyo Stock Exchange) to SUMITOMO CORPORATION through off-market transaction. After the execution of the sale, Sumitomo Precision Products will be out of the scope of NSSMC's equity-method affiliates.

The sale will be conducted promptly, after satisfaction of the conditions precedent, which include, among other conditions, the completion of certain procedures required by domestic and foreign competition laws.

1. Reason for the Sale

   NSSMC has been striving to improve its financial structure through asset reduction and other means, as well as promoting measures such as strengthening its business competitiveness and expanding overseas business. NSSMC has decided to implement the sale, as it matches its group strategy and financial strategy.

2. Number of Shares to be Sold and Number of Shares Held before and after the Sale

   (1)	Number of shares to be sold	13,745,441 shares (26.08% of voting rights)
   (2)	Number of shares held before the sale	21,394,798 shares (40.59% of voting rights)
   (3)	Number of shares held after the sale	7,649,357 shares (14.51% of voting rights)

   * In addition to the above holding, NSSMC's fully-owned subsidiary NIPPON STEEL & SUMIKIN PRECISE MACHINING CO., LTD. holds 70,000 shares (0.13% of voting rights). Thus, the NSSMC Group's total shares held after the planned sale will be 7,719,357 shares (14.64% of voting rights).

3. Planned Schedule for the Sale

   (1)	March 27, 2017	Conclusion of share transfer agreement concerning the sale
   (2)	April 27, 2017	Date of closing of the sale

4. Impact on NSSMC's Financial Results

The impact of the sale on NSSMC's consolidated financial results is immaterial.

For more information, please contact;

Public Relations Center, General Administration Division TEL: +81-6867-2135, 2146, 2977, 3419