NIPPON COKE & ENGINEERING COMPANY,LIMITED

The Group’s core business is the manufacture and sale of coke, complemented by the procurement and sale of steam coal and petroleum coke, the coal center business, and the manufacture and sale of powder and bulk-material equipment and systems. The Group comprises the Company, 8 subsidiaries, and 2 affiliates, NIPPON STEEL CORPORATION and SUMITOMO CORPORATION (SUMITOMO SHOJI KAISHA,LTD.). It operates through 3 reportable segments: the coke business centered on Kitakyushu, the non-coke fuel and resource recycling business, and the comprehensive engineering business. Its major customers are NIPPON STEEL CORPORATION and other steel-related users, and NIPPON STEEL CORPORATION is also one of its major shareholders. A business system diagram is included in this report. As part of its management policy, the coke business is strengthening its safety, environmental and disaster-prevention systems and moving to a sound 2-furnace production structure. The Group is also developing a hydrogen and ammonia supply system, seeking new sources of revenue, and promoting initiatives related to hydrogen, ammonia and carbon neutrality. In its non-coke businesses, the Group seeks to secure stable earnings by utilizing its own infrastructure and making effective use of waste. As part of its sustainability initiatives, the Group is identifying and addressing issues based on materiality, aims to achieve carbon neutrality by 2050, and is working to restore profitability and strengthen its business base, primarily in the coke business, as medium-term objectives from the latter half of the 2020s onward.