Intellectual Property Management

The Nippon Steel Group respects intellectual property rights, regardless of whether they belong to us or others. We will make the most of the intellectual property rights in our business activities, and position them as one of the important factors for obtaining business revenue now and in the future.

Policy and organization of intellectual property activities

Policy on intellectual property activities

We perform intellectual property (IP) activities under the company-wide slogan, “IP is the source of our corporate activities. Maximize corporate value through enhanced protection management and active utilization.” We are strengthening efforts to directly link IP created from R&D activities, which are implemented based on management strategies, to maximizing business earnings and corporate value.

Based on a specific business strategy, we formulate and act on an IP strategy in accordance with all aspects (offensive and defensive) of individual products and technologies. We then share the results throughout the Company in an effort to continuously strengthen our strategies. We are also focusing on the acquisition of rights for IP generated in the development of technologies and products that realize carbon neutrality, as well as the transformation of business and production processes—including business models enabled by DX technologies.

Moreover, we are involved in licensing IP outside the Group and in standardization to form the market rules, and use IP in a variety of ways to advance its business. As shown in the table below, we are working to complete our Medium- to Long-term Management Plan by actively utilizing our IP.

Promotion system of IP activities

Business divisions take the lead in making a trinity of management strategy, R&D strategy, and intellectual property strategy, and then carry out specific intellectual property activities. These activities are supported by the Intellectual Property Div..

In addition, the Intellectual Property Div. is actively involved in management from a traversing perspective regarding intellectual property activities that straddle business divisions. After discussing the progress of these activities at the company-wide meeting and determining the direction of how to proceed with intellectual property activities, the final decision is made by the Corporate Policy Committee and the Board of Directors.

The results of such discussions are fed back to the business divisions and people involved in the inventions to strengthen the daily intellectual property activity. Further, through continuous information management and education/training, we are improving the awareness and skills of all the employees related to intellectual property.

[Examples of intellectual property utilization for contribution to business to accomplish Medium- to Long-term Management Plan]

Initiatives aligned with growth and decarbonization strategies	Examples of representative intellectual property utilization
1. Rebuilding of domestic steel business Shift to a more sophisticated order mix, renewal and improvement of facilities, and concentrated production	Protecting strategic products (high-tensile steel sheets, electrical steel sheets, etc.) with patents for differentiation and enhancing the appealing power to customers Stable and efficient production based on accumulated technical know-how
2. Promoting a global strategy to deepen and expand overseas business Building an integrated production framework and a sales network in markets and sectors that are consistent with our strategy	Strengthening the competitiveness of overseas Group companies by utilizing our patents and technology know-how Promotion of strategic globalization considering the value of intellectual property
3. Expansion of business domain (Raw material and logistics businesses) Innovation of business operations and production processes using digital technology	Protection of business and production process reforms by expanding patents Contribution to digital society by patents and technological know-how related to DX technologies
4. Challenge of carbon neutrality Hydrogen injection into blast furnaces Hydrogen direct reduction of iron High-grade steel production in large size EAFs CCUS (cooperation with outside parties)	Promotion of development and implementation by combining patents and technological know-how of our company and third parties Utilization of intellectual property in creating new social rules (standardization of standards)

Securing creation and enhancing protection and utilization of IP

We have been focusing on enriching and accumulating our IP in terms of both quality and quantity to enhance their strategic utilization in all aspects of our business. Specifically, we thoroughly manage technical information related to research results obtained through our independent research and collaboration with universities and external research institutes, and secure IP that can be used in our business activities.

We secure the most advanced newly created technologies and other proprietary technologies such as carbon neutral-related technologies, as IP through the patent acquisition and tacit knowledge of know-how we have accumulated. We utilize them in the course of our business practices and contribution to society in line with our Medium- to Long-term Management’s Plan.

[Specific initiatives in intellectual property activities]

[Nippon Steel’s patents in 2024] Japan approx. 16,000 / Overseas approx. 19,000 (non-consol.)
1. Support the creation of new IP	Plan IP strategy that contributes to the business strategy Build and evaluate the IP portfolio Enrich the function of establishing rights for inventions, discoveries, and IP
2. Enhance the protection and utilization of IP	Globally protect and actively use IP as a means to differentiate strategic products Actively use IP in strategic alliance with collaborating partners Thoroughly control technical information including business secrets Establish brand strategies with the aim of enhancing corporate value and product value Strictly deal with counterfeit products as well as any violation and illegal use of our IP
3. Commendations and awards from external groups	2022 [Okochi Memorial Production Prize] “Development of coke strength improvement technology that contributes to low-carbon blast furnaces and cost reduction” 2025 [Commendation for Science and Technology by the Minister of Education, Culture, Sports, Science and Technology] “Development of sea forest creation technology using steel slag to support diverse ecosystems” 2024 National Commendation for Invention [Invention Award] “Invention of chromium resource recycling and environmentally harmonized steelmaking process of stainless steel”

Value of our patents

The Nippon Steel Group holds a high share of patents in major global markets compared to its competitors in Japan and overseas.

LexisNexis “PatentSight™” provides a patent value index PAI (Patent Asset Index™) based on the technical value and market value of patents. The PAI data in 2024 shows that Nippon Steel has a relatively higher value than our domestic and overseas competitors. We carefully evaluate domestic and international patent applications in line with our management strategy. At the same time, we continue to expand and accumulate important patents in terms of both quality and quantity, thereby increasing our valuable patent portfolio in Japan and overseas, which not only supports our business revenues in the world but also contributes to social, economic and industrial developments.

*Calculated using PatentSight^TM, a patent analysis tool of LexisNexis.
Comprehensive evaluation index of patent calculated by multiplying “technical value” calculated based on the number of citations of patents and “market value” calculated based on the country of application for patents with valid legal status (patents pending and granted).

Example of IP utilization for our strategic products: Highly corrosion-resistant plated steel sheets

We hold a dominant position in one of our strategic products, with a significantly larger number of patents related to highly corrosionresistant plated (Zn-Al-Mg-based plated) steel sheets than any other competitor. In particular, the patent portfolios for our flagship products—ZEXEED™, SuperDyma™, and ZAM™—surpass domestic and international competitors not only in the number of patents but also in their Patent Asset Index (PAI).

Leveraging the competitive advantage provided by these patent portfolios, we are further reinforcing group-wide sales activities for highly corrosionresistant plated steel sheets and related structural components, thereby enhancing market recognition, expanding demand, and ultimately increasing profitability in this business domain.

［Examples of adoption］

Initiatives for standardization

Pursuing broader utilization of intellectual properties

We promote the comprehensive intellectual property (IP) utilization strategy aiming at securing and strengthening the competitive advantage based on our management strategies in each business domain. This strategy integrates multiple approaches— including confidentiality, patenting, market expansion through standardization, and defacto standardization—to maximize the values of intellectual properties created through manufacturing operations and R&D activities.

Starting in FY2025, we established a permanent cross-functional structure within our Intellectual Property Division being to serve as the central enhancer of company-wide efforts to expand the use of various standards. Under the leadership of the Representative Director & Executive Vice President, who concurrently serves as Chief Standardization Officer (CSO)^*, we have launched cross-divisional initiatives that are to go beyond conventional business unit frameworks, e.g. activities in emerging fields such as new energy markets.

To support these initiatives, we are also to encourage the human resources development. This includes recognition by the Head of the R&D, the Representative Director & Executive Vice President, for employees who have made outstanding contributions to standardization activities.

*CSO：Chief Standardization Officer

Promoting strategic standardization for distinctive business objectives

For promoting the practical uses of standardization, which encompasses a broad range of targets and approaches, we advance our initiatives based on the following three distinctive business objectives.

1. Quality assurance

As a manufacturing company, quality assurance is a fundamental element of our business activities. In this domain, we not only ensure compliance with domestic and international standards but also continue to strengthen and expand our long-established internal quality assurance framework.

2. Business competitiveness

Strategic standardization aiming at enhancing profitability across the businesses is implemented in alignment with product characteristics and market needs. These efforts are employed in conjunction with Open & Close strategies to enhance our competitive edge.

3. Management base

We are actively working on standardization and related initiatives to support the market expansion for our products including GX Steel, designed to meet the requirements of a carbon-neutral society.

Strategic standardization activities aligned with broader societal trends

We actively support the formulation and revision of fundamental standards such as JIS and ISO, in collaboration with the Japan Iron and Steel Federation, an organization accredited as a designated industrial standardization body by the Ministry of Economy, Trade and Industry (METI). Through these collaborative efforts, we promote standardization that enhances the common convenience and applicability of steel.

We also advance standardization initiatives that are aligned with Japanese government’s priorities, particularly in key strategic areas such as environment and energy—including climate change, energy transition, GX—as identified in the government’s New National Standardization Strategy released in June 2025.

Through our standardization efforts, we aim accelerating the dissemination of advanced technologies that facilitate the broader and more sophisticated use of steel—a material that underpins the foundation of the society—thereby contributing to more sustainable and prosperous society.