Source disclosure: February 25, 2026

NIPPON STEEL CORPORATION [5401.T]

TOKYO, Feb 25 (Pulse News Wire) – NIPPON STEEL CORPORATION (5401.T) announced the issuance of stock acquisition rights (warrants).

TOKYO, Feb 25 (Pulse News Wire) -- Nippon Steel Corporation (5401.T), led by President and COO Masakazu Imai, has finalized the issuance conditions for its Euro-yen convertible bond-linked warrant bonds due in 2029 and 2031. The company announced these details on February 24, 2026, alongside previously disclosed information regarding both securities.

For the 2029 maturity Euro-yen convertible bond-linked warrant bonds, the total amount of issuance is set at ¥300 billion. The exercise price for the warrants will be equal to the face value of the bonds, while the conversion price is fixed at ¥730.3 per share. At maturity, the repayment amount will be 104.16% of the face value of the bonds, with an early redemption rate of 1.40%. The subscription period for the warrants will run from March 26, 2026, to January 31, 2029, subject to certain exceptions such as prepayment or loss of interest. Additionally, the potential dilution ratio resulting from this financing is expected to reach 15.63%, calculated based on the assumption that all warrants linked to the 2029 and 2031 bonds would be exercised at their initial conversion prices.

Regarding the 2031 maturity Euro-yen convertible bond-linked warrant bonds, the total issuance amount also stands at ¥300 billion. Similar to the previous issue, the exercise price for the warrants equals the face value of the bonds, and the conversion price is set at ¥737.0 per share. Upon maturity, the repayment amount will be 104.01% of the face value, with an early redemption rate of 0.80%. However, should the bondholders opt for early redemption, the repayment amount would be 102.02% of the face value.

On the day of the decision, February 24, 2026, the closing stock price of Nippon Steel on the Tokyo Stock Exchange was ¥663.9 per share, indicating an uprate of 10.00% for the 2029 bonds and 11.01% for the 2031 bonds compared to their respective conversion prices.

The press release explicitly states that this announcement does not constitute investment advice or similar activities aimed at promoting sales within Japan or abroad. Furthermore, no public offering or sale of these bonds will occur domestically. In the United States, unless registration under the U.S. Securities Act of 1933 or an exemption from registration is sought, no solicitation or offer to sell these securities can take place. Any future offerings in the U.S. would require an English-language prospectus prepared in accordance with the U.S. Securities Act of 1933, which would provide detailed information about the issuer's management and financial statements. However, no such offerings or registrations are planned for the U.S. market in connection with these bonds.

The effective date is 2026-02-25.