GROUP PROFILE 2015 Steel Group 1. We provide reliable and advanced technologies, products and services that satisfy customers. The Kobe Steel Group believes that its products and services can only earn the trust of consumers when the Group itself—including its manufacturing capabilities and corporate culture—is deserving of that trust.

2. We support each employee in developing his or Corporate her abilities, while respecting mutual cooperation Philosophy within the Kobe Steel Group. Diversity is vital to the Kobe Steel Group’s strength as a unified organization. We believe input from a diverse range of people helps to strengthen the Group. We aim to be a corporation where employees respect the rights and opinions of each other while working together toward a common goal.

3. Through continuous efforts for innovative change, we aim to enhance our corporate values. It is important to meet changes in the business environment with speed and ingenuity. The Kobe Steel Group has a proven track record in innovating with the times. In order to maintain this success and strengthen the Group’s foundation, we believe in proactively greeting new challenges in the business environment.

Group Brand

“KOBELCO” is the unified brand name of the Kobe Steel Group. Under the KOBELCO brand, we provide trusted, “Only One” products, technologies and services in a wide range of fields, including materials, machinery and power supply.

Under the 2020 KOBELCO VISION “G” medium- to long-term business vision, the Group is accelerating global development of its businesses. As a trusted corporate group, our aim is to turn KOBELCO into a leading brand that is recognized by people throughout the world.

01 CONTENTS

03 Message from the President 05 Group Profile 07 Corporate Strengths 09 Main Domestic Locations 11 Main Overseas Locations 13 Technical Development 15 Recent Topics [Business Segments] 17 Iron & Steel Business 19 Welding Business 21 Aluminum & Copper Business 23 Machinery Business 25 Engineering Business 27 Kobelco Eco-Solutions 29 Kobelco Construction Machinery 31 Kobelco Cranes 32 Other Businesses 33 Power Supply Business 34 Corporate Social Responsibility 35 Environmental Management 36 Social Contributions 37 Work Environment 38 History of Kobe Steel 40 Overseas Group Companies 44 Kobe Steel Business Locations

* The Iron & Steel, Welding, Aluminum & Copper, Machinery and Engineering businesses are divisions of Kobe Steel, Ltd. Kobelco Eco-Solutions, Kobelco Construction Machinery, Kobelco Cranes and Other Businesses are Kobe Steel Group companies.

02 Message from the President

The Kobe Steel Group continues to grow on the global stage, through one-of-a-kind manufacturing and group-wide synergy. Hiroya Kawasaki

President, CEO and Representative Director Kobe Steel, Ltd.

Forging new opportunities through diversified Focusing on future stability and growth: management spanning a broad array of businesses KOBELCO VISION “G” Since our founding in 1905, the Kobe Steel Group has In 2010, the Kobe Steel Group established new policies for pursued monozukuri (or manufacturing), offering superior future growth under a medium- to long-term business vision, products and technologies. Our businesses currently span KOBELCO VISION “G.” The vision of the Kobe Steel Group an impressive range of fields. With all businesses gathered around 2020 is to achieve a diversified business structure under one enterprise, a major advantage of the Kobe Steel consisting of two major pillars, materials and machinery, as Group is its diversified management that capitalizes on the well as the power supply business to form a stable revenue comprehensive strengths of the Group as a whole. base. The first phase of the plan ended in fiscal 2012. We The Kobe Steel Group features a wide lineup of innova- are currently in the final year of the plan’s second phase, tive “Only One” products and technologies. Many of these covering fiscal 2013-2015. products hold the number one share in the world market. The second phase focuses on rebuilding our business The diversity of the technologies we have amassed over the foundation. Initiatives center on strengthening profitability in many years is the foundation on which we enhance our the steel business, securing sales volume in growth sectors manufacturing capabilities and serves as the driving force of and regions, improving the competitiveness of the company, our corporate activities. Through distinctive manufacturing, and improving financial performance. Progress has been we will continue to create new value and contribute to favorable, with many targets already met or exceeded. progress in industry and society in the years to come. During these three years, we have begun laying the groundwork for the medium to long term, starting from fiscal 2016. We have begun reforming our steel business, strategically expanding the machinery businesses, and expanding the power supply business.

03 Laying the groundwork for future growth A trusted enterprise: Strengthening safety and compliance In fiscal 2013 and 2014, we began carrying out a variety of Providing reliable and trustworthy technologies, products projects in our businesses to further grow. In the steel and services is an integral part of the Kobe Steel Group’s business, we are consolidating upstream production to corporate philosophy. Initiatives for safety and disaster Kakogawa Works aiming at around 2017. In the United prevention, environmental consideration and compliance States, our joint venture, PRO-TEC Coating, began produc- are all indispensable aspects for the continued stable tion of advanced high-strength steel sheet for automobiles. increase in profits and growth. Our steel and aluminum businesses are also constructing In our day-to-day business activities, we must always new production bases in China to serve the automotive remember that we operate together with our many market. In the machinery business, we established our very stakeholders—including shareholders, customers and em- first location in Brazil. Finally, in the construction machinery ployees. We must also make thorough efforts to ensure that business, we are building a new plant in the United States. each member in every company of the Group is prepared In fiscal 2015, in addition to steadily implementing on- to respond swiftly and appropriately, in regard to safety, the going plans, we are also investing for new growth, which environment and disaster prevention. will be linked to our next medium-term business plan that The Kobe Steel Group will continue to grow, advancing begins in fiscal 2016. its distinctive manufacturing capabilities and pursuing Major topics include continuing the consolidation of up- dynamic business development, in order to contribute to a stream operations at Kakogawa Works and consideration more prosperous future. for a joint venture with Millcon in Thailand in the steel busi- ness, a potential new investment. As new sources of rev- enue in our power supply business, we intend to construct a new power station in Moka, Tochigi Prefecture, and build another power station adjacent to the current one within Kobe Works. Plans are steadily moving ahead with the formation of power delivery contracts with Tokyo Gas and Kansai Electric Power. We will also continue to explore further strategic investments.

September 2015

04 Group Profile

Company Profile

Company name: Kobe Steel, Ltd. Employees Group brand: Consolidated: 36,420* Nonconsolidated: 10,609* Founded: September 1, 1905 (excluding seconded personnel) Incorporated: June 28, 1911 Subsidiary companies: 210* Capital: 250,930,033,900 yen* Affiliated companies: 58* President & CEO: Hiroya Kawasaki * As of March 31, 2015

Organizational Structure

President & CEO Iron & Steel Business

Head Office Executive Vice President and Representative Director Yoshinori Onoe* Executive Vice President and Executive Officer Yukimasa Miyashita Board of Directors Representative Director Naoto Umehara Senior Officers Takashi Goto Executive Officer Takafumi Morichi Makoto Mizuguchi Officers Kazuaki Kawahara Koichiro Shibata Koji Yamamoto Officers Hiroaki Matsubara Yasushi Okubo Yoshihiro Oka Management Council Yoshihiko Katsukawa Shoji Miyazaki

Executive Committee Electric Power Project Division Welding Business Officer Jiro Kitagawa Directors Managing Director Fusaki Koshiishi* Chairman of the Board and Representative Director Officer Akira Yamamoto Hiroshi Sato Technical Development Group President, CEO and Representative Director Hiroya Kawasaki Aluminum & Copper Business Executive Vice Presidents and Representative Directors Senior Managing Director Yasuaki Sugizaki Kazuhide Naraki Senior Officer Toshiya Miyake Executive Vice President and Yoshinori Onoe Representative Director Akira Kaneko* Akira Kaneko Senior Officers Hiroshi Kato Naoto Umehara Branch Offices Takumi Fujii Senior Managing Directors Officer Nobuaki Isono Yasuaki Sugizaki Shohei Manabe Sales Offices Machinery Business Managing Director Fusaki Koshiishi Executive Vice President and Outside Directors Takasago Works Representative Director Kazuhide Naraki* Takao Kitabata Executive Officers Takao Ohama Hiroshi Ochi Mitsugu Yamaguchi Audit & Supervisory Board Members Overseas Offices Hiroaki Fujiwara Engineering Business Yoshimasa Yamamoto Outside Audit & Supervisory Board Members Senior Managing Director Shohei Manabe* Shigeo Sasaki Senior Officer Kazuto Morisaki Takashi Okimoto Officer Hiroshi Ishikawa Shinya Sakai *Head of business unit

As of June 24, 2015

Fiscal 2014 Sales Mix

Consolidated net sales: ¥1,886.9 billion Kobelco Eco-Solutions: 68.1 (3.5%) Segment sales include intersegment sales. (unit: billions of yen)

Aluminum & Machinery: Kobelco Construction Iron & Steel Business: 797.8 (40.8%) Copper: 159.1 Machinery: 330.8 (16.9%) (8.1%) 311.0 (15.9%)

Overseas net sales: ¥715.4 billion (37.9%) Welding: 94.5 (4.8%) Kobelco Cranes: 71.1 (3.6%) Nonconsolidated net sales: ¥1,028.1 billion Engineering: Other Businesses: 49.1 (2.5%) 76.1 (3.9%)

05 Group Business Development

Barrier-Free Organization

Iron & Steel Welding Aluminum Machinery Engineering Kobelco Kobelco Kobelco Other Business Business & Copper Business Business Eco-Solutions Construction Cranes Businesses Business Machinery

Kakogawa Works Fujjissawa Plantt Moka Plant Takasago Works Takasago Works Harima Plant Hiroshima Okubo Plant Factory Kobe Works Ibaaraaki Plant Chhofu Works • Industrial • Equipment Plant Ogaki Factory Takasago Works Saijo Plant Daaian Plant Machinery Plant

• Steel Casting & Fukuuchiyama Haatano Plant • Rotating Forging Plant Plaannt (KKobelco & Machinery Plant Materials Copper • Titanium Plant • Equipment Plant Tuube) Harima Plant • Steel Powder Plant Major Manufacturing Bases

• Steel wire rods • WWellding • Aluminum flat- • Tire and rubber • DRI processes • Water treatment • Heavy • Crawler cranes • Real estate and bars matterials rolled products machinery facilities excavators • Upgraded Brown • Wheel cranes • Hi-tech materials • • Steel sheets • WWellding • Aluminum/ Plastic processing Coal Process • Cooling towers • Mini excavators • Superconducting syysttems magnesium machinery • Steel plates • Nuclear • Waste treatment • Environmental products castings and • Metalworking equipment facilities recycling • Steel castings forgings machinery • High-pressure machinery and forgings • Advanced • CWD facilities/ • Chemical and gas vessels • Aluminum technology disposal food processing • Titanium extrusions and • Senior citizens’ equipment equipment fabricated • Steel structures/ homes • Steel powder products • Nonstandard erosion control • Environmental • Other • Wholesale power compressors dams analysis • Copper strips supply • Standard • Urban transit • Copper tubes compressors systems • Chemical Major Products & Services equipment • Energy equipment

• Wire rod for • Covered welding • Aluminum • Rubber mixers/ • MIDREX® • Water treatment • Hybrid hydraulic • Crawler cranes • Sputtering valve/ electrodes automotive tire testing Process facilities excavators targets (Kobelco suspension panel materials machines Research • Flux-cored wires • ITmk3® Process • Cooling towers • Building springs Institute) • Aluminum bottle • Plastic mixing demolition • Noncopper • Spent fuel • Biogas • CHQ wire rod can stock and pelletizing machines • NMR coated wires storage and upgrading for automobiles Systems superconducting • HDD aluminum transport casks system • Welding wire and • High-strength disk materials • Nonstandard materials for • Steel erosion- • Fluidized-bed magnets (Japan steel for • screw offshore Aluminum control dams gasification and Superconductor automobiles compressors structures forgings for melting furnaces Technology) automotive • Flared seawalls • Special film • Oil refining • Welding • PCB detoxifica- coated steel suspensions reactors materials for tion facilities sheet • Aluminum energy • LNG vaporizers shapes for • Large ship industries railway cars • Binary crankshafts • Welding robot generators • Automotive • Titanium alloys systems for bumper for aircraft steel frames materials • Welding • Copper strips for equipment for terminals and Major “Only One” Products & Technologies Products & “Only One” Major joining ship plates connectors • REGARC™ • Copper strips for process leadframes

06 Corporate Strengths

The Kobe Steel Group is a diversified enterprise with a unique business scope unparalleled in the world.

Many people are familiar with Kobe Steel as a major steelmaking company, but as a diversified corporation with businesses in three primary areas, the Kobe Steel Group offers even more. The three business areas include materials businesses such as steel, aluminum, copper and welding; machinery businesses such as industrial machinery, construction machinery and engineering; and power supply. Founded in 1905, Kobe Steel has capitalized on the synergy across business segments in numerous fields for 110 years. Through our businesses we support industry, society and everyday life. The following are some of the innovative products and technologies that have allowed us to excel on the global stage.

“Only One” Products and Technologies

Wire rod for automotive engine valve springs High-strength steel sheet

Crankshafts Titanium Welding materials (FCW) Materials

© Rolls-Royce Aluminum automotive Aluminum forgings panels for automotive suspensions Aluminum bottle can stock

Aluminum shapes for Leadframe materials railway cars

Materials: KOBELCO helps create lighter vehicles KOBELCO contributes The Kobe Steel Group contributes to lighter vehicles through products such as high-strength steel, which boasts some of the world’s highest to lifestyles tensile strengths, and aluminum automotive panels, for which Kobe Steel holds 50 percent of the Japanese market, as well as titanium and society products for aerospace. Our unique array of products enables us to propose multi-material technologies that combine steel, aluminum and welding.

07 “Only One” Products and Technologies

Nonstandard screw compressors Rubber mixers Reactors for oil refining

LNG vaporizers (ORV) MIDREX® Process Casks

Flared seawalls Hydraulic excavators Crawler cranes

Machinery

Power supply One of the Largest Wholesale Power Generating Capacities in Japan

Shinko Kobe Power Station Two new power station projects are underway.

Machinery: Contributing to a hydrogen society Power supply: KOBELCO creates energy Fuel cell vehicles (FCV) are seen as the “ultimate form of eco- In 2002, we entered the power supply business. Our power friendly cars,” because they use hydrogen for fuel and emit station boasts a generating capacity of 1.4 million kW, only water when driving. At Kobe Steel, we offer equipment capable of covering 70% of Kobe’s peak power demand. and total engineering solutions for hydrogen stations, which As an urban power station, the facility features some of are integral to the creation of hydrogen infrastructure. We also the most advanced environmentally friendly equipment. supply materials for use in the vehicles themselves. Plans are also underway for construction of new plants in Moka (Tochigi Prefecture) and at Kobe Works.

08 Main Domestic Locations

Kobe Steel, Ltd.

Iron & Steel Business Head Offices, Branch Offices and Sales Offices Kakogawa Works - Kakogawa, Hyogo Prefecture Kobe Head Office - Kobe, Hyogo Prefecture Research & Development Laboratory - Kakogawa, Hyogo Prefecture Tokyo Head Office - Shinagawa, Tokyo Kobe Works - Kobe, Hyogo Prefecture Osaka Branch Office - Osaka, Osaka Prefecture Welding Business Nagoya Branch Office - Nagoya, Aichi Prefecture Hokkaido Sales Office - Sapporo, Hokkaido Fujisawa Plant and Technical Center - Fujisawa, Kanagawa Prefecture Tohoku Sales Office - Sendai, Miyagi Prefecture Ibaraki Plant - Ibaraki, Osaka Prefectur Niigata Sales Office - Niigata, Niigata Prefecture Saijo Plant - Higashi-Hioshima, Hirroshima Prefecture Hokuriku Sales Office - Toyama, Toyama Prefecture Fukuchiyama Plant - Fukuchiyama, Kyoto Prefecture Shikoku Sales Office - Takamatsu, Kagawa Prefecture Aluminum & Copper Business Chugoku Sales Office - Hiroshima, Hiroshima Prefecture Moka Plant - Moka, Tochigi Prefecture Kyushu Sales Office - Fukuoka, Fukuoka Prefecture Chofu Works - Shimonoseki, Yamaguchi Prefecture Okinawa Sales Office - Naha, Okinawa Prefectur Daian Plant - Inabe, Mie Prefecture Takasago Works - Takasago, Hyogo Prefecture Machinery Business Research Laboratories Harima Plant - Kako-gun, Hyogo Prefecture Kobe Corporate Research Laboratories - Kobe, Hyogo Prefecture

Kobe Corporate Research Laboratories Chofu Fukuchiyama

Chugoku Saijo Plant Kobe Head Office Sales Office Research & Hokuriku Kyushu Sales Office Development Sales Office Laboratory Takasago

Kakogawa Daian Nagoya Harima Ibaraki Kobe Branch Office Shikoku Sales Office

Okinawa Sales Office Osaka Branch Office

Group Companies by Business Segment

Iron & Steel Business Welding Business Shinko Wire Company, Ltd. - Amagasaki, Hyogo Prefecture Hanshin Yosetsu Kizai Co., Ltd. - Okayama, Okayama Prefecture Shinko Bolt, Ltd. - Ichikawa, Chiba Prefecture Ni Welding Corporation - Osaka, Osaka Prefecture Tesac Wirerope Co., Ltd. - Kaizuka, Osaka Prefecture Kobelco Welding Solution Co., Ltd. - Shinagawa, Tokyo Nippon Koshuha Steel Co., Ltd. - Chiyoda Tokyo JKW Co., Ltd. - Taito, Tokyo KS Summit Steel Co., Ltd. - Koto, Tokyo TASETO Co., Ltd. - Fujisawa, Kanagawa Prefecture Sakai Steel Sheets Works, Ltd. - Sakai, Osaka Prefecture Shinko Welding Service Co., Ltd. - Fujisawa, Kanagawa Prefecture Sanwa Tekko Co., Ltd. - Ama-gun, Aichi Prefecture Shinko Actec Co., Ltd. - Osaka, Osaka Prefecture Shinko Kenzai, Ltd. - Amagasaki, Hyogo Prefecture Kobelco Robotics Service., Ltd. - Fujisawa, Kanagawa Prefecture Shinko Kohan Kako, Ltd. - Ichikawa, Chiba Prefecture Aluminum & Copper Business OSAKA Ttanium Technologies Co., Ltd. - Amagasaki, Hyogo Prefecture Japan Aeroforge, Ltd. - Kurashiki, Okayama Prefecture Toyotsu Nonferrous Center Corporation - Anjo, Aichi Prefecture Shinko Kobe Power Inc. - Kobe, Hyogo Prefecture Shinko-North Co., Ltd. - Kasumigaura, Ibaraki Prefecture Kansai Coke and Chemicals Co., Ltd. - Amagasaki, Hyogo Prefecture Shinko Aluminum Wire Co., Ltd. - Sakai, Osaka Prefecture Shinko Engineering & Maintenance Co., Ltd. - Kobe, Hyogo Prefecture Shinko Fab Tech, Ltd. - Shimonoseki, Yamaguchi Prefecture Shinko Slag Products Co., Ltd. - Kobe, Hyogo Prefecture Shinko Leadmikk Co., Ltd. - Kitakyushu, Fukuoka Prefecture Kobe Special Tube Co., Ltd. - Shimonoseki, Yamaguchi Prefecture Shinko Metal Products Co., Ltd. - Kitakyushu, Fukuoka Prefecture Kobelco Logistics, Ltd. - Kobe, Hyogo Prefecture Kobelco & Materials Copper Tube, Ltd. - Shinjuku, Tokyo Ceratechno Co., Ltd. - Akashi, Hyogo Prefecture Shinko Kanmon Sohgo Service Ltd. - Shimonoseki, Yamaguchi Prefecture Shinko Daian Sohgo Service Ltd. - Inabe, Mie Prefecture Shinko Moka Sohgo Service Ltd. - Moka, Tochigi Prefecture

09 Hokkaido Sales Office

Tohoku Sales Office Niigata Sales Office

Moka

Tokyo Head Office Kobelco Construction Machinery Fujisawa Kobelco Construction Machinery Co., Ltd. - Shinagawa, Tokyo, Hiroshima, Hiroshima Prefecture Kobelco Construction Machinery (East Japan) Co., Ltd. - Ichikawa, Chiba Prefecture Kobelco Construction Machinery (West Japan) Co., Ltd. - Amagasaki, Hyogo Prefecture Machinery Business Kobelco Construction Machinery International Trading Co., Ltd. Shinko Air Water Cryoplant, Ltd. - Kobe, Hyogo Prefecture - Ichikawa, Chiba Prefecture, Kobe, Hyogo Prefecture Shinko Inspection & Service Co., Ltd. - Takasago, Hyogo Prefecture Kobelco Construction Machinery Engineering Co., Ltd. Shinko AirTech, Ltd. - Kobe, Hyogo Prefecture - Hiroshima, Hiroshima Prefecture Kobelco Compressors Corporation - Shinagawa, Tokyo Kobelco Training Services Co., Ltd. - Ichikawa, Chiba Prefecture Shinko Engineering Co., Ltd. - Ogaki, Gifu Prefecture Shinko Techno Engineering Co., Ltd. - Takasago, Hyogo Prefecture Kobelco Cranes Kobelco Shinwa Co., Ltd. - Akashi, Hyogo Prefecture Kobelco Cranes Co., Ltd. - Shinagawa, Tokyo Kobelco Cranes Trading Co., Ltd. - Yokohama, Kanagawa Prefecture, Kobe, Hyogo Prefecture Engineering Business Kobelco Training Services Co., Ltd. - Ichikawa, Chiba Prefecture Industrial Services International Co., Ltd. - Kobe, Hyogo Prefecture Transnuclear, Ltd. - Minato, Tokyo Other Businesses ATSC Corporation - Kobe, Hyogo Prefecture Shinsho Corporation - Osaka, Osaka Prefecture, Chuo, Tokyo Shinko Engineering & Maintenance Co., Ltd (Plant Division) Shinko Real Estate Co., Ltd. - Kobe, Hyogo Prefecture - Kobe, Hyogo Prefecture Kobelco Research Institute, Inc. - Kobe, Hyogo Prefecture Kobe Heating and Cooling Supply Co., Ltd. - Kobe, Hyogo Prefecture Kobe Wing Stadium Co., Ltd. - Kobe, Hyogo Prefecture Kobe Medical Care Partners Co., Ltd- Kobe, Hyogo Prefecture I.H.D. Center Co., Ltd - Kobe, Hyogo Prefecture Kobelco Systems Corporation - Kobe, Hyogo Prefecture Kobelco Eco-Solutions Kobelco Personnel Co., Ltd. - Kobe, Hyogo Prefecture Kobelco Eco-Solutions Co., Ltd. - Kobe, Hyogo Prefecture Kobelco Business Support Co., Ltd. - Kobe, Hyogo Prefecture Kobelco Eco-Maintenance Co., Ltd. - Kobe, Hyogo Prefecture Kobelco Financial Center, Ltd. - Shinagawa Tokyo E.R.C. TAKAJO Co., Ltd. - Miyakonojo, Miyazaki Prefecture Japan Superconductor Technology, Inc. - Kobe, Hyogo Prefecture TOYOTA ENVIRONMENT SERVICES CO., LTD. - Toyota, Aichi Prefecture Shinko Care Life Co., Ltd. - Kobe, Hyogo Prefecture Kakogawa Environment Service Co., Ltd. - Kakogawa, Hyogo Prefecture Shinko Industrial Co., Ltd. - Kurayoshi, Tottori Prefecture Ikoma Environment Service Co., Ltd. - Ikoma, Nara Prefecture Shinko Human Create Co., Ltd. - Kobe, Hyogo Prefecture Takao Environment Service Co., Ltd. - Akiruno, Tokyo Shinko Lease Co., Ltd. - Kobe, Hyogo Prefecture Haga Environment Service Co., Ltd. - Moka, Tochigi Prefecture Shinko Research Co., Ltd. - Koto Tokyo Fukui Green Power Co., Ltd. - Ono, Fukui Prefecture Twin Foods Co., Ltd. - Amagasaki, Hyogo Prefecture (as of September 2015)

10 Main Overseas Locations

UK Germany

Netherlands

South Korea

China

UAE

India Operating as a unified Group Thailand in the world market, we aim to create new value Vietnam and global growth. Singapore Malaysia

Indonesia 72 locations

Asia and Oceania

Iron & Steel Business Kobe Aluminum Automotive Products (China) Co., Ltd. - Jiangsu, China Kobelco Automotive Aluminum Rolled Products (China) Co., Ltd. - Tianjin, China Kobe CH Wire (Thailand) Co., Ltd. - Thailand Australia Suzhou Kobe Copper Technology Co., Ltd. - Jiangsu, China Mahajak Kyodo Co., Ltd. - Thailand Kobe Wire Products (Foshan) Co., Ltd. - Guangdong, China Machinery Business Jiangyin Sugita Fasten Spring Wire Co., Ltd. - Jiangsu, China Kobelco Compressors (Shanghai) Corporation - Shanghai, China Kobe Special Steel Wire Products (Pinghu) Co., Ltd. - Zhejiang, China Kobelco Compressors Manufacturing (Shanghai) Corporation - Shanghai, China Kobelco Spring Wire (Foshan) Co., Ltd. - Guangdong, China Kobelco Compressors (Shanghai) Corporation Guangdong Branch - Guangdong, China Kobelco Angang Auto Steel Co., Ltd. - Liaoning, China Beijing Kobelion Kobelco Compressors Corporation - Beijing, China Shinko Wire (Guangzhou) Sales Co., Ltd. - Guangdong, China Wuxi Compressor Co., Ltd. - Jiangsu, China Tesac Shinko Wirerope Consulting (Shanghai) Co., Ltd. - Shanghai, China Shinwa Wood Works (Wuxi) CO., LTD. - Jiangsu, China Microfine Trading (Shanghai) Co., Ltd. - Shanghai, China Yiyang Yishen Rubber Machinery Co., Ltd. - Hunan, China Welding Business Kobelco Machinery Asia Pte. Ltd. - Singapore Kobelco Machinery India Pte. Ltd. - India Kobelco Welding Asia Pacific Pte. Ltd. - Singapore L&T Kobelco Machinery Pte. Ltd. - India Kobe Welding (Malaysia) Sdn. Bhd. - Malaysia Kobelco Advanced Lube-system Asia Co., Ltd. - South Korea Kobe MIG Wire (Thailand) Co., Ltd. - Thailand Thai-Kobe Welding Co., Ltd. - Thailand Engineering Business Kobe Welding of Korea Co., Ltd. - Korea Midrex Metallurgy Technology Services (Shanghai) Ltd. - Shanghai, China Kobelco Welding Marketing of Korea Co., Ltd. - Korea Midrex Technologies India Pte. Ltd. - India Kobelco Welding India Pvt. Ltd. - India Kobe Welding of Tangshan Co., Ltd. - Hebei, China Kobelco Eco-Solutions Kobe Welding of Qingdao Co., Ltd. - Shandong, China Kobelco Eco-Solutions Vietnam Co., Ltd. - Vietnam Kobe Welding of Shanghai Co., Ltd. - Shanghai, China Kobelco Eco-Solutions (Malaysia) Sdn. Bhd. - Malaysia Aluminum & Copper Business Kobelco Construction Machinery Singapore Singapore Kobe Pte. Ltd. - Chengdu Kobelco Construction Machinery (Group) Co., Ltd. - Sichuan, China Malaysia Kobelco & Materials Copper Tube (Malaysia) Sdn. Bhd. - Chengdu Kobelco Construction Machinery Co.,Ltd. - Sichuan, China Thailand Kobelco & Materials Copper Tube (Thailand) Co., Ltd. - Chengdu Kobelco Construction Machinery Financial Leasing Ltd. - Sichuan, China Malaysia Kobe Precision Technology Sdn. Bhd. - Hangzhou Kobelco Construction Machinery Co., Ltd. - Zhejiang, China Thailand Kobe Electronics Material (Thailand) Co., Ltd. - Kobelco Precision Machinery Hangzhou Co., Ltd. - Zhejiang, China

11 The Kobe Steel Group’s major overseas locations 16 countries 8 97 locations locations USA Europe and the Middle East 17 Welding Business locations Kobelco Welding of Europe B.V. - Netherlands North and South America Machinery Business Kobelco Machinery Europe GmbH - Germany Iron & Steel Business Kobelco Machinery Middle East FZE. - UAE PRO-TEC Coating Company - Ohio, USA Engineering Business Grand Blanc Processing, LLC – Michigan, USA Mexico Midrex UK Ltd. - UK Kobelco CH Wire Mexicana, S.A. de C.V. – Welding Business Kobelco Construction Machinery Kobelco Welding of America Inc. - Texas, USA Kobelco Construction Machinery Europe B.V. - Netherlands Aluminum & Copper Business Kobelco Cranes Kobe Aluminum Automotive Products, LLC - Kentucky, USA Kobelco Cranes Europe Ltd. - UK & Netherlands Kobelco Cranes Middle East FZE. - UAE Machinery Business Kobelco Advanced Coating (America), Inc. - Illinois, USA Other Kobelco Compressors Manufacturing Indiana, Inc. - Indiana, USA Düsseldorf Office - Germany Kobelco Stewart Bolling, Inc. - Ohio, USA Brazil Kobelco Compressors America, Inc. - California, USA Kobelco Machinery do Brazil Ltda. - Brazil Kobelco International (S) Co., Pte. Ltd. - Singapore Ricon Private Limited - Singapore Engineering Business Thai Kobelco Construction Machinery Ltd. - Thailand Midrex Technologies, Inc. - North Carolina, USA Kobelco Construction Equipment India Pvt. Ltd. - India Kobelco Construction Machinery Kobelco Construction Machinery Australia Pty. Ltd. - Australia P.T. Daya Kobelco Construction Machinery Indonesia - Indonesia Kobelco Construction Machinery U.S.A. Inc. - Texas, USA Kobelco Construction Machinery Malaysia Sdn. Bhd. - Malaysia Kobelco Cranes Kobelco Construction Machinery Vietnam Co., Ltd. - Vietnam Kobelco Cranes North America Inc. - Texas, USA Kobelco Cranes Other Kobelco Cranes South East Asia Pte. Ltd. - Singapore Kobe Steel USA Holdings Inc. - Delaware, USA Kobelco Cranes India Pvt. Ltd. - India Kobe Steel International (USA) Inc. - New York, USA Kobelco Cranes (Shanghai) Co., Ltd. - Shanghai, China Kobe Steel USA Inc. - New York, USA Chengdu Kobelco Cranes Co., Ltd. - Sichuan, China Kobe Steel USA Inc. - Michigan, USA Other Beijing Office - Beijing, China Kobelco (China) Holding Co., Ltd. (China headquarters) - Shanghai, China Kobe Steel Asia Pte. Ltd. - Singapore Kobe Steel Asia Pte. Ltd. - Hong Kong Bangkok Office - Thailand Kobelco Trading (Shanghai) Co., Ltd. - Shanghai, China Shanghai Shinsho Trading Co., Ltd. - Shanghai, China Suzhou Shinko-Shoji Material Co., Ltd. - Zhejiang, China Kobelco Precision Parts (Suzhou) Co., Ltd. - Zhejiang, China Shinsho Osaka Seiko (Nantong) Corporation - Jiangsu, China Beijing Oriental Shentong Expert Training Co., Ltd. - Beijing, China Kobelco Logistics (Shanghai) Ltd. - Shanghai, China

(as of September 2015)

12 Technical Development Accelerating Technological Synergy through Group Cooperation

Research & Development

The Kobe Steel Group brings together the basic and cutting-edge technologies developed by the Technical Development Group with the extensive technologies in the individual business units, which are closely linked to customers and production. This enables Kobe Steel to create “Only One” products as well as boost its manu- facturing capabilities in such fields as materials, machinery, the environment, energy, and electronics. Kobe Corporate Research Laboratories

The Materials Research Laboratory bases its research on four technical fields: refining and solidification, materials design, mechanical working, Materials and surface control. For the materials business, it is working to develop Research new high-performance products based on material and surface design and Laboratory control, as well as optimize manufacturing processes. For machinery- related businesses, it focuses on creating differentiated products utilizing its expertise in materials.

At the core of the Mechanical Engineering Research Laboratory are the fields of structure, strength, dynamics, acoustics, fluid and heat transfer, combustion, advanced simulation technology in the chemical field, and Mechanical testing, measurement and analysis technologies. This laboratory focuses Engineering on enhancing product performance and production processes, streamlin- Research ing designs, and developing new products and technologies to improve Laboratory product development capabilities in machinery, materials, the environ- ment, energy, and steel structures. The Multi-Material Structural Design and Joining Research Section was established in April 2014 to develop multi-materials, which combine metals such as steel and aluminum, to contribute to lightweight automobiles.

The Production Systems Research Laboratory introduces innovation to Production production technologies to bolster the Group’s manufacturing capabilities, Systems utilizing cutting-edge technologies for measurement and inspection, Research control, production planning, information systems and signal processing. Laboratory

The core technologies of the Electronics Research Laboratory include those Electronics related to thin-film materials, microfabrication and superconductivity. It Research plays a part in strengthening the Kobe Steel Group’s competitiveness in Laboratory such growth fields as nanotechnology, the environment, and energy. In addition, it capitalizes on its electromagnetic design and electronic control technologies in its efforts to develop novel products in power electronics.

Coal & Energy The Coal & Energy Technology Department is developing energy conversion technologies, such as upgrading low-grade coal through Technology dewatering and deashing, coal liquefaction and hydrocracking of heavy oil. It is striving to find ways to effectively use the world’s untapped Department natural resources and contribute to securing stable and diversified energy sources for Japan.

• Kobelco Research Institute • Shinko Research • Japan Superconductor Technology Affiliated Material analysis and testing; structural Patent, technical and other information companies evaluation; target materials; and research; industrial, market and tech- Superconducting wires, superconducting production and sale of semiconductor, nical surveys; and technical PR. magnet systems and superconducing FDP and PV testing systems. application systems.

Affiliated R&D companies

13 Technology Highlights

The four main laboratories for basic research conduct joint work with the research divisions in the business units. Results include technologies that have already experienced commercial success, as well as technologies that are being pursued for their future potential. These technologies and products contribute to a wide range of industries in the electronics/electrical, machinery, energy, environment and other fields.

Development and First Development of SMCR® Experimental Fusion Reactor Application of KPAC-1 High Compact Microchannel Project: Order from ITER Corrosion-Resistance Steel Reactor for Superconducting Wire Rod

The Materials Research Laboratory has The Mechanical Engineering Research Japan Superconductor Technology, Inc. developed KPAC-1 steel plate, which Laboratory and the Energy & Nuclear has received an order for Nb3Sn has been adopted for crude oil tankers Equipment Business Unit have developed superconducting wire used in the to meet new corrosion rules. KPAC-1 the SMCR® microchannel reactor, experimental ITER fusion reactor project. boasts around four times the corrosion primarily for use as a reactor vessel for The ITER project is a large-scale, inter- resistance of previous steel materials, chemical products and manufacturing national endeavor. The Nb3Sn wire, even in highly acidic environments processes. Previously, the creation of which was developed in cooperation with where corrosion is likely, such as found microchannel reactors for high-volume our Electronics Research Laboratory to at the bottom of crude oil tankers. processing had proven difficult due to maintain toughness even under an Development of KPAC-1 came as a structural limitations. However, SMCR® ultra-high magnetic field, has contributed result of adjusting the chemical compo- achieves a higher volume of processing significantly to the project. sition, relying on over 50 years of and smaller size than previous reactor research and expertise at Kobe Steel in products by utilizing proprietary tech- the field of corrosion-resistant steel. A nologies. With a processing capacity of number of large-scale oil spills, having tens of thousands of tons per year, polluted our oceans in recent years, SMCR® is suited for mass-production has attracted interest in high corrosion applications. resistant steel.

Plate with flow Layering & welding passages

Mixing part (enlarged) Fluid A Fluid A Fluid B Fluid B Experimental thermonuclear reactor Multichannel structure of SMCR® Source: ITER website microchannel reactor

R&D Results

• R&D Expenditure & Numder of Patent Applications 1.4% 1.4% 1.6% 1.6% 1.8% 1.6% 1.7% 1.5% 1.4% 1.3% ¥30.1 ¥30.1 ¥31.4 ¥30.7 ¥29.9 1.4% billion ¥28.2 ¥29.8 billion ¥28.4 R&D expenditure billion billion billion billion billion ¥24.1 ¥24.8 billion (consolidated) billion ¥19.7 billion billion Ratio to net 962 924 971 957 921 sales 813 898 838 874 790 800 No. of patent applications (nonconsolidated) FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

14 Recent Topics Expauding Business Overseas

Expauding the Supply Network for Advanced Steels Iron & In August 2014, Kobe Steel and Angang Steel established Kobelco Angang Auto Steel Co., Ltd., a joint venture for the production and sale of automotive cold-rolled Steel high-strength steel in China. The ¥28.9 billion plant in Ansteel’s steelworks, Anshan Base, will have a continuous annealing line with an annual capacity of Business 600,000 tons. Operation is expected to commence in early 2016. In September 2014, Kobe Steel, together with five other companies established Kobelco CH Wire Mexicana, S.A. de C.V. (or KCHM), a joint venture to produce and sell steel wire for automotive fasteners, for supply to local auto parts makers. Operation is scheduled to begin in late 2015, with an annual production capacity Signing of the MOU with Milcon Steel of about 40,000 tons. In June 2015, Kobe Steel and Milcon Steel signed a memorandum of understanding (MOU), agreeing to commence consideration for establishing a joint venture in Thailand to produce and sell wire rods. Kobe Steel’s overseas wire rod business extends to wire rod secondary processing bases in China, Thailand, USA and Mexico. If completed, the new joint venture would become our first overseas wire rod manufacturing base.

Strengthening Overseas Business by Matching Products to Each Market’s Needs

Thai-Kobe Welding, which makes welding electrodes in Thailand, is Welding strengthening its marketing, services, manufacturing and development capabilities. Kobe Welding (Malaysia) has increased production capacity Business of covered welding electrodes. Other initiatives include opening a representative office in Indonesia. Vigorous sales and marketing activities are also underway in China. Over 20 years ago, we formed a distribution organization called Thai Shinyokai to promote sales in Thailand. Two years ago, we launched a Distributors at the Shinyokai meeting in China similar Shinyokai network in China consisting of our Chinese distributors. We have launched a campaign to expand the network and other activities in that country. We are also working to strengthen flux-cored wire production capacity at Kobe Welding of Qingdao, and to introduce a new line at Kobe Welding of Tangshan capable of producing high value-added solid wires in addition to general-purpose solid wires. Additionally, expanding business in the offshore structures and energy fields is one of the central initiatives in our current medium-term strategy. We are pursuing large-scale off-shore structure projects in South Korea, LNG vessels and tanks in China, and pipeline businesses in Russia.

Global Expansion in Aluminum Sheet Products for Automotive Panels

Kobelco Automotive Aluminum Rolled Products (China) Co., Ltd. was established Aluminum & in January 2014 in the Xiqing Economic-Technological Development Area of Copper Tianjin City, China, to produce and sell aluminum sheet products for automobile panels. The ¥19 billion plant will have an annual production capacity of 100,000 Business tons, with operation expected to commence in 2016. The groundbreaking ceremony for the plant was held in July 2014. Kobe Steel is the leading company in Japan for aluminum sheet products for automotive panels, with a market share of over 50 percent. Groundbreaking ceremony for the plant

Establishment of New Compressor Sales Company in Brazil

Kobelco Machinery do Brazil Ltda. is Kobe Steel’s first location in Brazil. The Sao Machinery Paulo company opened in April 2014. The company was established to strengthen marketing and sales of nonstandard compressors in South America, as well as Business to improve after-sales services. Kobe Steel’s nonstandard compressor business also includes locations in China, Southeast Asia, the Middle East, North America and Europe. Kobe Steel’s compressor business now covers all of the major world markets.

Nonstandard compressor

15 Expanding Business through Global Licensing, Order Received for World’s Largest MIDREX® Plant in Algeria

In June 2015, U.S. subsidiary Midrex Technologies and its partner Paul Wurth of Luxembourg, Engineering received an order from Turkish company Tosyaji Holding to build the world’s largest MIDREX® Direct Reduction Plant, with an annual production capacity of 2.5 million tons. Construction for Business the plant is underway, with operation scheduled to begin in 2017. We are expanding global licensing with UK company Primetals Technologies also holding a MIDREX® Process construction license. In April 2014, a licensing agreement for the KOBELCO Pelletizing System for iron-ore pretreatment was granted to FLSmidth a local Indian subsidiary of FLSmidth & Co., which is a world-leading engineering company. Under this agreement, FLS will carry out the marketing, designing and construction of pelletizing plants in India.

MIDREX® Direct Reduction Plant

Order Received for Sewage Treatment Facility in Southern Vietnam

In January 2015, Kobelco Eco-Solutions received an order for a sewage Kobelco treatment facility from Binh Duong Water Supply-Sewerage-Environment Co., Ltd., in southern Vietnam,s Binh Duong Province. The order came as Eco-Solutions part of the Southern Binh Duong Province Water Environment Improvement Project (Phase 2), which is funded by a Japanese Official Development Assistance (ODA) loan arranged by the Japan International Cooperation Agency (JICA). The facility will contribute to improved living conditions in Ho Chi

Minh City and other downstream regions, and protection of water Signing ceremony supplies. In the future we will continue to work to improve the environment in Vietnam and other Southeast Asian countries through water treatment and infrastructure development.

U.S. Plant Construction Begins, Sales in European and American Markets Expanding Favorably Kobelco Kobelco Construction Machinery recommenced independent activities in the USA and Europe for the first time in 10 years, after its global alliance Construction with CNH Global came to an end in late 2012. Expansion of sales and distribution networks in the USA and Europe is proceeding favorably, Machinery with Kobelco Construction Machinery U.S.A. relocating to a new, expanded location in nearby Katy, Texas in September 2014, and with Kobelco Construction Machinery Europe in the Netherlands. Additionally, construction of a new U.S. plant commenced, with operations expected to begin in 2016. Dealers meeting in the United States

Global Expansion of Production and Parts Supply Network

Kobelco Cranes is expanding its overseas network of production and parts Kobelco supply bases. In January 2015, the company established a new parts warehouse in Singapore, the Kobelco Global Parts Center. This new Cranes warehouse significantly shortens delivery times. Production at overseas bases is also proceeding favorably. In August 2014, cumulative production at Kobelco Cranes India, established in 2010, reached over 100 units.

Opening ceremony

16 Iron & Steel Business

Strengthening manufacturing capabilities for more advanced, higher value-add products

The Iron & Steel Business is comprised of the steel, casting and forging, titanium, steel powder and wholesale power supply divisions. In addition to a commitment toward strengthening manufacturing capabilities to increase productivity and cost competitiveness, the Iron & Steel Business is also focused on global development of “Only One” products and technologies and expansion in fields of growing demand.

“Only One” Products and Technologies

Found in one out The world’s of every two strongest steel! cars, worldwide! Wire Rod for Automotive High-strength Steel Sheet Engine Valve Springs Stronger than standard steel sheet, Kobe Steel’s Engine valve springs must be able to withstand high-strength steel sheet is primarily used in auto thousands of expansions and compressions per frames and help contribute to lighter vehicles. In minute. They require an extremely high level of particular, Kobe Steel is the leading manufac- quality. Kobe Steel’s wire rod products are the turer for development and commercialization of brand of choice, with a 50-percent share of the ultra high-strength steel sheet. world market.

Steel Wire • Wire rod for suspension springs Steel Plates • Storage tank steel plate (for LNG/LPG tanks) Other “Only One” Rods • Automotive cold heating quality (CHQ) • Steel plate for offshore structures (API-standard 500 MPa steel) Products and and Bars wire rod • Steel plate for ships (Hizumiless residual stress control steel plate) • Wire rod for steel cord • Steel plate for bridges (Eco-View corrosion resistant steel plate for coating) Technologies • Automotive steel bar • Steel plate for construction (Kobe Super Toughness high HAZ toughness • Bearing steel wire rod steel plate)

1317 Steel Wire Rods and Bars Steel Castings and Forgings

Kobe Steel produces special steel, Kobe Steel uses casting (pouring molten primarily for use in cars. In particular, steel into a mold and cooled to achieve Kobe Steel has garnered high praise Wire rod coils the desired shape) and forging (using a for its level of technology in cold press to form and strengthen solid heading quality (CHQ) steel wire rod, steel) processes to produce complex which is used for items such as nuts, and large components such as ship bolts, and engine and suspension crankshafts. springs. Steel bars 13,000-ton press

Steel Plates Titanium

Kobe Steel produces steel plates Kobe Steel is an integrated titanium primarily for use in ships, construction manufacturer, handling all stages from materials, construction equipment and ingot melting to the production of final industrial machinery. In recent years, products. Kobe Steel offers products with the increasing global demand for for a wide range of fields, from titanium energy development, Kobe Steel has alloys for aircraft and rocket parts to commercially pure titanium for also begun focusing on plate products ©Rolls-Royce for line pipes, pressure vessels and Plate rolling mill consumer products such as golf clubs steel plate for storage tanks. and roof tiles. Titanium fan case and jet engine

Steel Sheets Steel Powder

Kobe Steel produces steel sheets Kobe Steel produces steel powder primarily for use in automobiles, primarily for use in complex-shaped consumer appliances and construction parts. As Japan’s top steel powder materials. Focusing on high-strength manufacturer, Kobe Steel also steel sheet, Kobe Steel also contributes investigates new possibilities for steel to lower environmental impact through powder, such as steel powder for lighter weight vehicles and improved Steel coils environmental use for cleaning Atomized steel powder (ATOMELTM) fuel consumption. polluted soil and water.

Major Products

Steel Products Steel Castings and Forgings Titanium Steel Powder Wholesale Heat exchanger materials Steel powder for pocket body warmers Special wire road Cold-rolled steel sheet Engine parts Mold steel Construction materials Steel powder for oxygen absorbers (IPP) Steel powder for cleaning polluted Special steel wire rod Electrogalvanized steel sheet Crankshafts Rolls Golf club materials soil/water Ordinary steel bar Hot-dipped galvanized steel sheet Hull components Bridge components Motorcycle muffler materials Steel powder for magnetic materials Special steel bar Coated steel sheet Pressure vessels Wristwatch materials Fine powder for metal injection IT-related materials molding

40% share One of the nation’s of market, largest independent worldwide! power producers! Crankshafts Wholesale Power Supply Crankshafts are a core ship part, transmitting (IPP) force from a ship's engine to its propellers. With a capacity of 1.4 million kW, the Shinko Kobe Steel holds 40 percent of the world market Kobe Power Station is one of Japan’s largest share for built-up and solid ship crankshafts, independent power producers. As an urban garnering high praise for dimensional precision power station, it also features some of the at the micro level. country’s highest standards for environmental protection.

Steel Sheet • Zinkobella GX-COTE Series Steel • Steel powder for magnetic materials Chromate-free electrogalvanized steel sheet Powder • Steel powder for environmental cleaning Steel Castings and Forgings • Rolling rolls • Pre-alloyed steel powder Titanium • Commercially pure titanium (for heat exchangers, golf clubs, IT-use, • SEGLESSTM graphite segregation-free steel powder motorcycle mufflers, wristwatches, etc.) • Titanium alloys (for aircraft parts)

18 Welding Business

Striving to become the world’s most trusted welding company by providing comprchcnsive welding solutions

Kobe Steel’s Welding Business supports the world’s industries with advanced technologies, offering total welding solutions that combine welding materials, welding systems, power sources, equipment, construction methods and more. With a top share in the Japanese and ASEAN regions, and accelerated global development, Kobe Steel aims to be the world's leading welding manufacturer.

“Only One” Products and Technologies

Greatly Reduced contributing to Non-Copper-Coated Solid Wires Welding Materials Flux-Cored Wires environmental reduced costs! (SE wire series) impact! for Low-Alloy Steel

Kobe Steel produces Produced using a new Increasingly sophisticated welding materials that offer wire surface treatment high-strength and low- high work efficiency for a technology, alloy, heat-resistant steel wide variety of industries, non-copper-coated solid is being utilized in recent including shipbuilding, wires offer groundbreak- years in high-temperature, bridge engineering and ing feed capability and high-pressure applications industrial machinery. These outstanding arc stability. such as oil refining reactors materials greatly decrease These wires also help to and thermal power boilers. welding man hours, greatly reduce environmental We have developed welding increase welding efficiency, impact, removing the materials specially designed and help create more need for copper plating to meet these needs. beautiful bead appearance. treatment during manufacturing.

19 Welding Materials Welding Systems

Kobe Steel manufactures and sells Kobe Steel boasts top results in Japan in the field approximately 800 different varieties of of robotic welding systems, particularly in systems welding materials, under the brand names for medium and heavy plate welding industries FAMILIARC™, TRUSTARC™ and PREMIARC™. such as steel frames and construction machinery. These materials help contribute to better Kobe Steel offers optimal welding solutions that manufacturing in a wide variety of industries, not only automate welding work and improve including the shipbuilding, steel frame and efficiency, but also help reduce costs and improve automotive sectors. quality for customers.

Covered Welding Electrodes

Also known as electric arc welding rods, these are the most common, general-purpose welding materials worldwide. They allow for welding with comparatively simple equipment, and thus are utilized in a wide range of industries, including construction and steel frames.

Solid Welding Wires Robotic welding system for construction machinery

Used primarily in the automotive and construction machinery fields, solid welding wires do not utilize a flux (oxide powder) core. Combined with robots for continuous welding, these wires can increase user productivity.

Flux-Cored Welding Wires (FCW)

Used primarily in shipbuilding and bridge construction, these wires have a flux (oxide powder) core. Optimal flux composition helps shorten welding times and improve the quality of welded parts.

Robotic welding system for column assembly

Major Products

Welding Materials Welding Systems Testing and Inspection High-Functional Materials Covered welding electrodes TIG welding rods Robotic welding systems for steel frames Testing, analysis, inspections and Flux-cored and solid wires Backing materials Robotic welding systems for bridge construction commissioned research High functional filters for for semi-automatic welding Robotic welding systems for construction machinery Training and inspection deodorization, dehumidification, Solid wires and fluxes for Other robotic welding systems Consulting ozone decomposition, gas removal submerged arc welding Off-line teaching systems Maintenance of industrial robots, power and oil mist removal Welding robots, welding power sources sources and equipment Deodorizing equipment

Top Increased Reduced costs market share, application of REGARCTM-equipped and improved worldwide! ARCMAN™-GS robotic welding! Robotic Welding System quality! for Steel Frames The ARCMAN™ welding robot series is used in a The REGARC™-equipped robotic wide range of plate welding welding system for steel frames uses fields, such as for steel digitally controlled welding equipment frames and construction and construction process technologies machinery. The GS model to achieve optimal feed of the features internalized welding wire. components such as torches and cables, making welding robots more viable in narrow spaces. It also allows for tandem welding.

20 Aluminum & Copper Business One of Japan’s leading suppliers of value-added products to the automotive and IT Industries

The Aluminum & Copper Business focuses primarily on products for the automotive and IT sectors, continuously strengthening and expanding its lineup of “Only One” products. As a leading aluminum and copper manufacturer in Japan, Kobe Steel is further expand overseas, backed by technologies and trust amassed over many years.

“Only One” Products and Technologies

50% market Top market 70% market share in Japan! share in Japan! share in Japan! Aluminum Automotive Aluminum Forgings for Aluminum Bottle Can Panel Materials Automotive Suspensions Stock Due to increased demand for lightweighting, the Kobe Steel holds a more than 30-percent Demand for lightweighting use of aluminum panels for engine hoods and other market share for aluminum beverage can has led to increased use of applications is increasing. Kobe Steel has capital- stock in Japan. Furthermore, Kobe Steel aluminum in suspension ized on the expertise and engineering capabilities it holds an approximately 70-percent share systems. Kobe Steel has has amassed over many years to capture approxi- of the market for aluminum bottle can captured the leading market mately 50 percent of the market share in Japan. stock, which share in Japan through requires aluminum forgings that are complex more than 40 percent lighter processing. than conventional steel forgings.

Aluminum • Automotive heat exchanger materials Aluminum • Aluminum aircraft castings Other “Only One” Flat-rolled • ALHIGHCE™ and ALJADE™ high-precision aluminum plates Castings and • Semiconductor and LCD manufacturing Products and Technologies Products Forgings equipment (chambers)

21 Aluminum Flat-rolled Products Copper Strips

Kobe Steel uses advanced rolling Kobe Steel manufactures and sells technologies amassed over many copper-alloy strip products, such as semi- years to provide value-added conductor leadframe and automotive “Only One” products in a variety terminal and connector materials. Using of fields, including beverage can proprietary elemental bonding to develop stock, automotive panel materials, value-added products that combine disk materials for hard drives, strength, conductivity and heat-resistance, air-conditioning fin materials, and Kobe Steel holds an approximately 20- plates for semiconductor and LCD percent share of the Asian market for manufacturing equipment. semiconductor leadframe materials. Aluminum coils Copper strips for electronic materials

Aluminum and Magnesium Castings and Forgings Copper Tubes (Kobelco & Materials Copper Tube)

Kobe Steel utilizes sophisticated Kobelco & Materials Copper Tube was casting, forging, analysis and alloy created through a 2004 merger with development technologies to Mitsubishi Materials and is Japan’s provide "Only One" products such leading manufacturer of air-conditioning as automotive suspension forgings, and other copper tubes. Kobelco & sand-cast aircraft parts and Materials Copper Tube has developed chambers for semiconductor and inner-grooved copper tube for the LCD manufacturing equipment. EcoCute heat pump and other value- Aircraft gearbox added products. It strives to strengthen supply networks in Southeast Asia (Thailand and Malaysia). Copper tubes for heat exchangers

Aluminum Extrusions and Fabricated Products

Boasting world-leading engineering capabilities, Kobe Steel provides “Only One” products such as automotive parts and railway car materials. Kobe Steel also devel- ops original products, such as integrated stay and bumper parts created through electromagnetic forming technologies.

Aluminum extrusions

Major Products Aluminum flat-rolled Aluminum and Aluminum Extrusions Copper Strips Copper Tubes products Magnesium Castings and Fabricated Can stock and Forgings Products Leadframe materials Air-conditioning copper Automotive panel materials Castings Extrusions (shapes, tubes, rods) Terminal and connector materials tubes Disk materials Forgings Fabricated products Construction/hot water General materials Machined products supply copper tubes

60% share Top market Top manufacturer of market, share in Japan! in Asia! worldwide! Aluminum Shapes for Aluminum Disk SuperKFCTM Leadframe Railway Cars Materials Materials These materials are used to Aluminum disk materials are primarily Leadframe materials are used as wiring materials in create the bodies of railway used as hard disk substrates for desktop semiconductor packages. Kobe Steel is Asia's lead- cars and must be light in computers and data centers. They require ing manufacturer of leadframe materials, with an weight as well as offer sound- a high level of quality. Kobe Steel is a approximately 20-percent share of the market. and vibration-dampening leading manufacturer of aluminum disks, SuperKFCTM was developed using sophisticated alloy properties. Kobe Steel devel- holding technologies, offering oped sound- and vibration- approximately vastly improved dura- dampening DAMP-SHAPETM, 60 percent of bility and conductivity a proprietary cross-sectional the world over previous products. shape, for use in aluminum market share. railway cars.

Aluminum • Automotive bumper materials Copper Strips • Strip for automotive terminals and connectors Extrusions • Low insertion force plating for automotive/consumer appliance terminals

22 Machinery Business

Pursuing growth strategies aimed at building a global business

Kobe Steel’s Machinery Business offers a wide range of products, including Industrial machinery, compressors and energy equipment. Kobe Steel creates original, “Only One” products to meet global demand in key growth fields, such as the automotive, environmental and energy industries, while also striving to build optimal production networks and strengthen its manufacturing capabilities.

“Only One” Products and Technologies

50% of Leading market Compact and market share, share in Japan! efficient! worldwide! Nonstandard Screw Kobelion standard Microbinary Compressors Compressors Generators Compared with other types of compressors, screw Kobe Steel’s standard compressors boast some of Kobe Steel develops and sells compact, highly compressors offer high compression ratios and the highest levels of specs and energy efficiency and efficient microbinary power generation systems, efficiency, as well as superior energy efficiency through feature a variety of world-first, innovative functions. capable of generating electricity from heat sources responses to fluctuations in load. Kobe Steel created Kobelion is our foremost standard (compact) com- of around 100˚C. These generators effectively the first screw compressor in Japan in 1956 and has pressor, with a leading market share in Japan. utilize previously unused heat sources, such as been supplying these compressors to large-scale factory waste heat and hot spring waters. plants ever since. Kobe Steel holds 50 percent of the world market share.

23 Industrial Machinery Compressors

Tire and Rubber Machinery Kobe Steel offers a wide lineup of Kobe Steel offers a full lineup of compressors, ranging from nonstandard industrial machinery, including tire (large-scale) gas compressors to standard (compact) air compressors. Kobe and rubber machinery, plastic Steel also contributes significantly to energy conservation on the part of users processing machinery, advanced through heating and cooling equipment that incorporate these compressors, technology deposition equipment such as refrigeration compressors and heat pumps. Kobe Steels aims to be and metalworking machinery. In one of the world's leading comprehensive manufacturers of compressors. particular, Kobe Steel specializes in products for rubber mixing, tire Nonstandard Compressors testing, and plastic mixing and pelletizing, offering a variety of Nonstandard compressors are an essential globally competitive "Only One" support component of oil refining and other products in these fields. Tire drum testing machine large-scale plants. Kobe Steel is the world's only manufacturer that offers nonstandard compressors in three varieties—screw, Plastic Processing Machinery centrifugal and reciprocating.

Standard Compressors

Kobe Steel offers a diverse lineup of com- pressors, ranging from 1.5 kW to 600 kW, to help power both large and small plants. LCM series plastic mixing These compressors also help contribute to and pelletizing system energy conservation for users, with the world’s highest standards of energy Energy and Nuclear Equipment efficiency.

Kobe Steel offers a wide lineup of large equipment for use in such Heating and Cooling Equipment fields as the energy and chemical industries. Kobe Steel’s products, Kobe Steel offers a wide lineup of energy which include oil refining reactors efficiency equipment, including refrigeration (pressure vessels), LNG vaporizers, compressors, heat pumps, steam generators, heat exchangers, air separation steam compressors and binary generators, units and nuclear equipment, are that boast the world’s highest standards of globally renowned for their high energy efficiency. These products utilize screw compressor technology, combining level of quality. compact size with high efficiency. Open rack LNG vaporizer

Major Products Industrial Machinery Compressors Batch mixers Physical vapor deposition systems Pressure vessels (reactors) Screw compressors Twin-screw extruders (AIP/UBMS) ALEX brazed aluminum heat exchangers Centrifugal compressors Tire curing presses Inspection and analysis equipment LNG vaporizers (open rack vaporizers, submerged vaporizers, Reciprocating compressors Tire testing machines Roll-to-roll coaters intermediate fluid vaporizers, air fin vaporizers, hot water vaporizers) Air separation units Standard compressors Large-capacity mixing and pelletizing Steel and nonferrous metal rolling mills Microchannel reactors (SMCR®) Screw refrigeration compressors systems Automatic flatness control systems Microchannel heat exchangers (DCHE) Heat pumps Continuous mixers and extruders Continuous casters Twin-screw extruders Isostatic pressing systems (HIP/CIP) Spent fuel storage and transport casks Optical fiber making equipment Fuel channels

35% of market share, A world-leading worldwide! manufacturer! Rubber Mixers Reactors for Oil Refining Other “Only One” Products and Technologies The tires used in automo- Reactors are used during oil refining to remove impu- biles, large construction rities. Kobe Steel is the world's only manufacturer machinery and other vehicles capable of sourcing three major materials for these Industrial Machinery come in a variety of shapes pressure vessels—forged shells, plates and welding • Tire testing machines and materials. Mixing the materials—all from in-house. Kobe Steel is also • Plastic mixing and pelletizing rubber for these tires, which capable of manufacturing some of the world’s largest systems requires molecular precision, reactors, up to the 2,200-ton class. • PVD coating toll services and is carried out by rubber equipment mixers. Kobe Steel holds a • LNG equipment 35-percent world market • Microchannel reactors (SMCR®) share for rubber mixers. Compressors • Geared turbo compressors • Steam generators

24 Engineering Business

Pursuing greater competitiveness in the global market with original technologies

The Engineering Business has achieved an impressive track record in plant engineering, particularly in the ironmaking and energy fields. We have developed cutting edge, original processes and technologies, such as direct reduction processes and next-generation ironmaking technology, as we actively pursue business development on the global stage.

“Only One” Products and Technologies

World’s most World’s top widely used supplier! DR process!

MIDREX® Process Nuclear Spent Fuel Casks Flared Seawalls

Developed by Midrex Technologies, These casks are used for shipping and storing spent Kobe Steel’s original seawall technology Inc., a wholly owned subsidiary of nuclear fuel from nuclear power plants. Kobe Steel helps to reduce overtopping and minimize Kobe Steel, the MIDREX® Process was the first Japanese manufacturer, in 1981, to damage from high waves, such as from utilizes natural gas to make direct begin manufacturing large-sized, forged casks. Kobe typhoons. The gentle flare helps to break reduced iron. As the world’s leading Steel boasts the waves and dampen their force. The flared direct reduction process, it is used world’s top shipping seawalls eliminate the need for the high in around 70 plants worldwide. record for these seawalls and tetrapods that are commonly Further demand is expected in casks, supplying used, better preserving scenery and sandy response to the shale gas revolution. over 250 casks in beaches. Due to the technology’s ability Japan and overseas. to protect coastal regions, demand is expected to grow nationwide.

25 Ironmaking Processes Nuclear Power/CWD Kobe Steel has introduced unique ironmaking processes to regions Utilizing advanced technologies and expertise throughout the world. In addition to proprietary direct reduction in handling radioactive materials, Kobe Steel processes such as the MIDREX® Process (which utilizes natural gas as supplies facilities and equipment for treatment the reductant) and a new ironmaking method, the ITmk3® Process, Kobe and storage of nuclear waste. In the CWD Steel also offers the FASTMET® Process for steel mill dust recycling, (chemical weapons destruction) field, Kobe KOBELCO iron ore pelletizing systems, and the upgraded Brown Coal Steel offers its original DAVINCH® technology (UBC) Process. for controlled detonation of chemical weapons. Kobe Steel utilizes its inspection and analysis Nuclear power-related facility technologies with its operational know-how KOBELCO to contribute to the international community. Pelletizing Systems

Kakogawa Works is home to Japan’s only pelletizing plant. Iron ore is pretreated at the plant, where it is fired into pellet form using a rotary kiln. Steel Structures/Erosion Control KOBELCO pelletizing systems have also achieved impressive results in iron ore In the field of public disaster prevention, Kobe and fuel producing regions such as Steel offers original products that combine Venezuela, Chile and Bahrain. safety with environmental conservation. In addition to being Japan’s top supplier of large steel erosion control dams (steel grid dams), Kobe Steel also provides wave-rebuffing flared seawalls. ® ITmk3 Process Flared seawall

The ITmk3® Process is a unique ironmaking process developed by Kobe Steel that differs entirely from the tradi- Urban Transit Systems tional blast furnace method. The process produces high-quality iron units from Kobe Steel is Japan’s leading engineering inexpensive raw materials and shortens company for advanced rubber tire transit the reduction process from the previous 8 hours to a mere 10 minutes. ITmk3® systems, with an impressive supply record. has garnered attention worldwide as a Kobe Steel has worked on such lines as the groundbreaking, next-generation Kobe Port Liner and Tokyo . method of ironmaking. Kobe Steel also applies its advanced transit technologies to urban rail systems located overseas. Advanced transit system

Major Products

Ironmaking Processes Nuclear Power/CWD Steel Structures/Erosion Control Urban Transit

MIDREX® Process Nuclear power-related plants Steel sabo (erosion control) structures Systems KOBELCO Pelletizing System Nuclear power equipment (Dams, driftwood capturing, etc.) Advanced Urban transit FASTMET® Process (Casks for transport/storage of spent nuclear fuel, fuel channels) Flared seawalls systems FASTMELT® Process Consulting, inspection, analysis, safety monitoring and Noise insulation systems (Rubber tire transit ITmk3® Process destruction of chemical weapons. Construction and operation of Sound absorbing panels for the systems, urban rail Upgraded Brown Coal (UBC®) destruction facilities underside of elevated roads systems, sky rail, Process Environmental restoration of polluted areas Cable production and installation guided buses)

New, original Top supplier seawall in Japan! technology! Other “Only One” Products and Technologies Steel grid sabo dams for erosion control

Steel grid sabo dams minimize impact on the environment, maintain- • ITmk3® Process ing safety by intercepting debris and • FASTMET® Process driftwood arising from floods, but • Advanced rubber tire transit systems without blocking the passage of water and fish during normal times. Kobe Steel is the top supplier in Japan of these dams, greatly contributing to disaster prevention and environmental conservation.

26 Kobelco Eco-Solutions Environmental solutions that meet the changing needs of the times

Kobelco Eco-Solutions Co., Ltd. is committed to offering “environmental solutions that meet changing needs.” Kobelco Eco-Solutions contributes to society through technologies that improve natural and living environments.

“Only One” Products and Technologies

Effective Full lineup! utilization of biogases! Sewage Biogas Water Treatment Facilities City Gas Pipe Injection Facility

A leading manufacturer in the field of Together with local authorities and gas suppli- water treatment, Kobelco Eco-Solutions ers, Kobelco Eco-Solutions developed a city gas offers a full lineup of water treatment production facility capable of refining gas from products, including water and sewage sewage sludge to the same quality as city gas. treatment facilities, industrial water In October 2010, Kobelco Eco-Solutions began and wastewater treatment facilities, injecting biogas into city gas pipes. Biogas is a sludge treatment facilities and pure/ combustible gas produced from methane ultra-pure water production facilities. fermentation of biomass solids such as sewage Kobelco Eco-Solutions also operates and food scraps. A carbon-neutral energy as a supplier of pure and ultrapure source, biogas has aroused significant interest water and is expanding sales in this for its potential to reduce dependence on fossil area. fuels.

27 Water Treatment Waste Treatment and Recycling

Pure water production facilities Fluidized-bed gasification and melting furnaces A leading manufacturer in the field of water treatment, Kobelco Eco- Kobelco Eco-Solutions boasts Japan's leading supply record for Solutions offers a full lineup of water treatment products, including water fluidized-bed gasification and melting furnaces. These furnaces help supply and sewage treatment facilities, industrial water and wastewater customers reduce CO2 emissions and landfill space. Kobelco Eco-Solutions treatment facilities, sludge treatment facilities and pure/ultra-pure water also offers a wide variety of treatment options for handling PCB waste. production facilities. Kobelco Eco-Solutions also operates as a supplier of Our broad menu enables us to meet a wide variety of treatment needs pure and ultrapure water and is expanding sales in this area. ranging from municipal to PCB wastes.

Cooling Towers Chemical and Food Processing Equipment

Plume abatement cooling towers High-purity hydrogen oxygen generator Kobelco Eco-Solutions develops and supplies state-of-the art cooling Kobelco Eco-Solutions offers a wide lineup of equipment: glass-lined towers for industrial as well district heating and cooling needs. Friendly equipment and evaporators, dryers, and brewing equipment. These on local environments, these products include space-saving towers, plume products are vital to a variety of processing industries, such as the fine abatement towers and ultra-quiet towers. chemical, pharmaceutical, petrochemical and foodstuff industries. In the field of next-generation energy, Kobelco Eco-Solutions also handles high-purity hydrogen oxygen generators.

Major Products Water Treatment Cooling Towers Waste Treatment and Chemical and Foodstuff Environmental Industrial/municipal water treatment Industrial cooling towers Recycling Processing Equipment Analysis facilities District heating and Pure/ultrapure water production cooling towers Municipal waste incineration and melting Glass-lined equipment Examination of water quality equipment, industrial water processing Ultra-quiet cooling towers plants (fluidized-bed gasification and melting Polymerizers and reactors Water quality testing at factories and wastewater treatment systems furnaces, stoker-type incinerators, fluidized- Separation and refining equipment and research centers Biowaste (sludge, food waste, etc.) bed incinerators, plasma melting furnaces) Powder processing equipment Measurement of industrial wastes recycling facilities Bulky waste and other recycling facilities High-purity hydrogen oxygen generators (PCB, metals, organic matter, etc.) PCB waste treatment plants

Environmentally friendly melting Safe PCB furnaces! detoxification! Fluidized-Bed Other “Only One” Gasification and PCB Detoxification Products and Technologies Melting Furnaces Facilities These furnaces offer environment- and people-friendly Metallic sodium dispersion (SP process), solvent extraction treatment, utilizing the energy found in waste to carry out decomposition (SED process) and plasma melting decompo- • High-efficiency, two-stage incinerators everything from incineration to ash melting (reduction/ sition methods (which can simultaneously treat a wide variety • DT module system slagging), thus reducing both landfill and CO2. of PCB wastes) are utilized at PCB waste treatment facilities • TWINSTIR reactors in locations throughout the country. • High-purity hydrogen oxygen generators

28 Kobelco Construction Machinery Garnering worldwide acclaim for fuel efficiency

Kobelco Construction Machinery Co., Ltd. specializes in hydraulic excavators, meeting increasingly diverse customer needs through development of original products that offer low fuel consumption and low noise. Following East and Southeast Asia, Kobelco Construction Machinery began accelerating overseas expansion in Europe and the Americas in 2013. Demand has been growing strongly, and in January 2015 construction began on a new plant in North America. The plant is scheduled to go into operation in 2016.

“Only One” Products and Technologies

The world’s The world’s first hybrid longest reach hydraulic demolition excavator. machine! Hybrid Hydraulic Excavators The SK3500D for

In 2006 Kobelco Construction Machinery the demolition of developed the world’s first hybrid ultra-large buildings hydraulic excavator, greatly decreasing fuel consumption compared with previ- With a maximum reach of 65 ous machines. The current lineup meters (21 stories), the SK3500D features two models. The 8-ton class is listed in the Guinness Book of SK80H reduces fuel consumption by 40 World Records as the building percent over previous models, and the demolition machine with the 20-ton class SK200H reduces fuel world’s longest reach. consumption by 16 percent. These machines have garnered high praise for their reduced fuel consumption.

29 Hydraulic Excavators Mini Excavators

These excavators were developed through thorough investigation and analysis of on-site conditions and applications. Kobelco’s iNDr (engine cooling) system equipped in ultra-short rear swing machines are the quietest in the industry, reducing noise during operation. The Acera Geospec, meanwhile, was designed to reduce hydraulic pressure loss, offering unpar- alleled work performance and cost savings. Standard hydraulic excavator Excavator with ultra-short rear swing

Mini excavator

Construction Recycling Metal Recycling Environmental Recycling Machines

As the pioneers who created the world’s first building demolition and vehicle dismantling machines, Kobelco Construction Machinery offers a wide range of original environmental products focusing on construction, metal, resource and timber recycling.

Building demolition machine Scrap loader

Resource Recycling Forestry

Resource handling machine Processor

Major Products Civil Engineering and Environmental Recycling Machinery Construction Machinery Hydraulic excavators Building demolition machines Vehide dismantling machines Resource handling machines Processors Mini excavators Magnet-equipped machines Harvesters Wheel loaders Scrap loaders Grapplers Mini wheel loaders

30 Kobelco Cranes Cutting-edge technology that leads the industry

As a construction equipment manufacturer specializing in the crane business. Kobelco Cranes Co., Ltd. develops appealing products while striving to strengthen its global foundation. Building on previously amassed technologies and brand strength, Kobelco Cranes continues to expand on the global stage.

Crawler Cranes Wheel Cranes

Kobelco Cranes offers a wide lineup of crawler cranes, ranging from the Kobelco’s MK650 lattice boom wheel crane for harbor use was released large-sized SL series used for the construction of large structures such as in Japan in May 2014. It has garnered high praise from customers for long-span bridges and wind and thermal power generation plants, to the a range of performance and features specifically tailored to harbor small- to mid-sized almighty Mastertech-G series, which offers toughness loading and unloading. and advanced controls. The city conscious Panther-X series, developed specifically for A variety of trusted Kobelco cranes can also be found in use in other urban use rather than rough terrain, is also popular and can be found industries, such as the BM-G series base machines for civil engineering and in use at numerous sites. foundation work.

Mastertech-G series crawler crane SL series large-sized crawler crane MK series wheel crane

Major Products Crawler cranes Wheel cranes Base machines for civil Work vessels Standard crawler cranes Rough terrain cranes engineering and foundation Large-sized crawler cranes Mini rough terrain cranes Telescopic crawler cranes Lattice boom wheel cranes work All terrain cranes

“Only One” Products and Technologies One of world’s top market shares! G Series Crawler Cranes The G series is a line of small- to mid-sized crawler cranes designed to meet regional regulations around the world. They come equipped with "G Mode," which offers 25 percent better fuel efficiency than previous models and helps to reduce CO2. The G series is not only environmen- tally friendly but also people friendly, with more comfortable cabs and safety features such as easy-to-use monitors.

31 Other Businesses Developing a wide range of businesses, contributing to industry and society

The Kobe Steel Group pursues an extensive range of businesses that are being continuously refined through repeated selection and concentration. Combining technologies and services from these different businesses in order to identify new value is integral to the identity of the Kobe Steel Group.

Shinsho Shinko Real Estate Kobelco Research Institute

As the core trading company of the Kobe Steel Shinko Real Estate Co., Ltd. is the Kobe Steel Kobelco Research Institute, Inc. (KRI) carries Group, Shinsho Corporation supports high added- Group’s core lifestyle support company. Focused out material and structural analysis, trials, physi- value manufacturing through creative business primarily on the G-clef condominium brand, cal analysis and other services. KRI also manu- development. Shinko’s businesses factures and sells Shinsho is especially include property sales, target materials and active in growth fields leasing, brokering, test equipment for such as resources, renovation, building fields such as semi- information systems, management, insur- conductors, FPD and energy and the envi- ance services, and solar power, develops ronment. It is helping more. Shinko contrib- special materials, and to advance the global utes to customer otherwise maximizes development of the lifestyles and peace in-company synergy Kobe Steel Group of mind through to support manufac- with business loca- trustworthy and turing. tions in 17 countries Shinsho Corporation reliable products and G-clef Shinkobe Tower Oxide semiconductor Osaka head office sputtering target materials worldwide. services.

Company name Businesses

Kobe Wing Stadium Management and operation of Noevir Stadium, parking lots and sports clubs, park management Leasing and management of office buildings, designing, construction, management and contracting of construction projects, I.H.D. Center operation and management of exhibition halls, rental conference spaces and other venues Kobelco Systems Planning, designing, development, operation and maintenance of IT solutions and services

Kobelco Personnel Personnel dispatching, recruiting and outsourcing

Kobelco Business Support Office-related services, PR services, travel and payrolling

Kobelco Financial Center Loans, receipts and expenditures, sale and purchase of accounts receivable, and other financial services

Japan Superconductor Technology Manufacture and sale of superconducting wire, superconducting magnet systems and superconducting application systems

Shinko Care Life Planning and operation of private senior citizens' homes and in-home care services

Shinko Industrial Manufacture and sale of high-pressure gas cylinders and other press-formed and assembled products

Shinko Human Create Human resource development and consulting, training, and creation and sale of training materials

Shinko Lease Leasing and installment sales of industrial machinery, office equipment and other movable propgrty Patent and technical information search, industry, market and technology surveys, brokerage and registration of technical Shinko Research information, technical PR, etc. Twin Foods Cold storage warehousing, port transport, customs clearance, etc.

32 Power Supply Business

Through power stations equipped with state-of- the-art environmental equipment, we aim to contribute to the stable supply of electricity as well as secure a more stable profit base. Our power supply business began in fiscal 2002 with the Shinko Kobe Power Station, which contributes to a more stable power supply for the region. We are also currently pursuing plans to construct additional power stations.

Shinko Kobe Power Station

The Shinko Kobe Power Station was established as the cornerstone of a new business following revisions to the Electricity Business Act in April 1995. In establishing the power station we fully capitalized on existing infrastructure at Kobe Works and our expertise in in-house power generation in the Iron & Steel Business. Wholesale power supply commenced in fiscal 2002. All generated power is supplied to Kansai Electric Power Co., Inc. The power station is one of the largest independent power producers in Japan, capable of covering approximately 70% of Kobe’s peak electricity demand. Because the power station is located in an urban setting, it also features environmental equipment with some of the highest standards.

Plans for Expansion of Facilities in Kobe

Upstream operations at Kobe Works are scheduled to end in 2017. As a result, we are pursuing plans to construct a 1.3 million kW power station on what will become the former site of the works’ blast furnace. A contract for power delivery was formed with Kansai Electric Power Co., Inc. on March 2015. Environmental assessments are currently underway, with plans to begin operation of the first of two plants in fiscal 2021. The new power station will feature cutting-edge, ultra-supercritical generating equipment. As an urban power station, it will also feature advanced environmental equipment of the highest standards suitable for the location.

Plans for Construction of Shinko Moka Power Station

We have established a plan to construct a 1.2 million kW power station on land adjacent to the Moka Plant in Tochigi Prefecture. A contract for power supply was formed with Tokyo Gas Co., Ltd. in September 2014. Environmental assessments are currently underway, with plans to begin operation of the No. 1 plant in the second half of 2019. The power station will receive city gas from Tokyo Gas, which it will utilize as fuel for state-of-the-art GTCC plants, offering one of the highest levels of generation efficiency in Japan. As Japan's first full-scale inland thermal power station, we believe it will help contribute to a stronger energy infrastructure through dispersed generation and regional development.

Power station Fuel Capacity Generation method Commencement of supply

Coal-fired, supercritical pressure No. 1 unit: April 2002 Shinko Kobe Power Station (existing) Coal 1.4 mil. kW (700,000 kW ×2) power generation No. 2 unit: April 2004

(Provisional name) Kobe Works Thermal Power Coal-fired, ultra-supercritical No. 1 unit: fiscal 2021 (scheduled) Coal 1.3 mil. kW (650,000 kW ×2) Station (in planning) pressure power generation No. 2 unit: fiscal 2022 (scheduled)

Gas turbine combined cycle No. 1 unit: 2H 2019 (scheduled) Shinko Moka Power Station (in planning) City gas 1.2 mil. kW (600,000 kW ×2) (GTCC) No. 2 unit: 1H 2020 (scheduled)

33 Corporate Social Responsibility

CSR Promotion System

CSR Promotion Structure Board of Directors President & CEO Environmental Management Committee (Secretariat: Environmental Control Environmental Management Promotion & Disaster Prevention Dept.) Executive Council Employees Shareholders and Investors Social Contribution

CSR Committee Customers & Business Partners (Secretariat: Corporate Planning Dept.) Business Activities

Ensuring Reliable Financial Reporting Risk Management Compliance Compliance Committee (Secretariat: Legal Dept.) Internal Control Activities Sustainability Report 2015

In 2006, we established a CSR Committee, which is responsible for determining basic policies related to corporate social responsibility and providing centralized implementation.To facilitate discussion, make proposals and conduct follow-up verification related to important issues, we have also established a Compliance Committee to advise the Board of Directors. The CSR Committee compiles information concerning the CSR activities and publishes it each year in the form of the KOBELCO Sustainability Report.

Strengthening and Enhancing Corporate Governance

Corporate Governance System

Compliance Committee Internal Reporting System Compliance Director, Compliance Officer, Outside Experts Outside Lawyers Audit Dept. Consults Advises Audits Executive Liaison Committee Board of Directors Appoints Appoints Business Units Management System 11 Directors President & CEO (decision-making, (including 2 outside directors) Directors, Officers information sharing) Executive Council Committees

Audits Corporate Governance Appoints Audit & Supervisory Board Audits (accounting) General Meeting of Shareholders 5 Audit & Supervisory Board Members Appoints (Including 3 Outside Audit & Supervisory Board Members) Accounting Auditors

At Kobe Steel we believe that executive decision-making and day-to-day by the Board and are entrusted by the directors to fulfill the duties assigned operations are inseparable. Directors bear legal responsibility toward share- to them. Delegating a certain level of authority from directors to officers helps holders and business partners for the business operations pursued by all to ensure agility. major business divisions in the Kobe Steel Group. Within this management structure, Kobe Steel also employs a corporate The Board of Directors currently consists of executives from senior man- auditing system which ensures strong and independent auditing and regula- agement, directors in charge of major operations at headquarters, heads of tory authority, as prescribed in the Companies Act of Japan. Additionally, five divisions that have an important impact on Group operations, and other Audit & Supervisory Board Members, including three outside members, are officials with comparable levels of responsibility. Additionally, to ensure appointed to strengthen management auditing functions and improve the transparency and fairness, and to reinforce oversight functions, two of the effectiveness of corporate governance. Internal audits of companywide eleven board members are outside directors. business operations are also carried out by the Audit Department, which is Kobe Steel has adopted a system that places corporate officers in charge established as an independent organization. of company operations. Officers in charge of company operations are appointed

Strengthening Compliance

Compliance System Kobe Steel has a Compliance Committee that advises the Board of Directors. Consults Two of its members are company directors, while five come from outside the Compliance Committee Board of Directors company in order to maintain fairness and neutrality. The Committee Reports proposes recommended plans related to compliance, checks on progress, Companywide Compliance Director Internal Reporting System and deliberates cases reported through the internal reporting (whistleblowing) system. Compliance Planning & Administration Section We appoint a companywide compliance director and a companywide compliance officer. We have also set up a dedicated Compliance Planning & Administration Section in the Legal Department to work in partnership with Planning & Administrative Departments in Business Units planning and administrative departments and with compliance managers stationed in our business units. Compliance Managers

Employees

34 Environmental Management

Environmental Management Policy

Environmental management based on 3 corporate visions, Group Environmental Management Structure Kobe Steel aims to be a leading environmental corporate group. Board of Directors At Kobe Steel, we believe we have a duty to future generations to leave behind a healthy ecosystem, in which all living creatures can thrive. To this end, we have established a Basic President & CEO Environmental Management Policy as well as six initiatives for implementation. We strive to implement environmentally conscious environmental management during every stage of our Executive Council operations and have set up a dedicated Environmental Management Committee to explore and make recommendations on these six initiatives. With participation by all Group employees, Environmental Management we are dedicated to becoming a leading environmental corporate group. Committee Secretariat Basic Environmental Management Policy Implementation Subcommittees on Specific Topics Committee

As a leading environmental corporate group, Kobe Steel Group will: Contributing to Environmentally the Environment Contribute to Friendly through Products, Coexist and Pursue environmentally the environment through Manufacturing Technologies 2 3 cooperate with 1 friendly manufacturing. its products,technologies and Services society. and services.

Disclosure of Six Initiatives for Coexisting and By following these principles, the Kobe Steel Group aims to fulfill its social responsibilities, Environmental Implementation Cooperating with improve its environmental capabilities and raise its corporate value. Information Society

Promoting Initiatives Thorough with Full Employee Risk Management Enhancing Corporate Value through Groupwide Environmental Management Participation

KOBELCO GREEN PROJECT

The Kobe Steel Group strives to work in cooperation and harmony with society, carrying out activities such as forest development projects and environmental education for children, who represent our next generation. In fiscal 2013 we instituted the KOBELCO GREEN PROJECT, which brings together these different activities under a single banner.

Forest Development KOBELCO Forest Fairy Tale Prize Since fiscal 2011, the Kobe Steel Group has been carrying out forest The KOBELCO Forest Fairy Tale Prize was introduced in fiscal 2013. The contest development at two locations within Hyogo Prefecture: KOBELCO Green collects fairytales on forest- and nature-related themes from elementary, Forest in Miki City and ECOWAY Green Forest in Kobe’s Nada Ward. middle and high school students. Winning stories are then transformed into In fiscal 2014 we also began carrying out agricultural and coun- picture books by professional authors and illustrators, for use as environmental tryside forest conservation activities in the Zenihara district of Ibaraki education tools. During the second annual prize, held in fiscal 2014, we (Osaka Prefecture), in cooperation with the welding branch of Kobe received a total of 438 entries. The two winning stories were then turned into Steel’s labor union. picture books, with around 1,800 book sets donated to elementary schools, These forest development projects rely on volunteer participation middle schools, high schools, special education schools and public libraries from Kobe Steel Group employees and their family members. Large in Hyogo Prefecture. numbers of volunteers participate each year. Activities focus on thinning, pruning and clearing of undergrowth. Planting and harvesting of abandoned crop fields is also carried out in the Zenihara district of Ibaraki. Regular activity has gradually resulted in sound environmental recovery. These forests are now bright, welcoming environments, where healthy sun filters through the trees.

Right: Elementary school division grand Picture book presentation ceremony prize winner, (left: Kobe City Board of Education The Forest’s Birthday Wreath Superintendent Shinnosuke Yukimura) Left: Middle school division grand prize winner, Grandma and the Forest

Agricultural and countryside conservation activities in Zenihara District, Ibaraki

35 Social Contributions

Contributions to Society through Sports

The Kobe Steel Group has a history of contributing to society through rugby. The Kobe Steel Rugby Club interacts with local communities and supports sports programs in a variety of ways, including support for high school rugby teams to popularize and strengthen the sport in Japan. The club's efforts are one of the many ways in which Kobe Steel helps to train the next generation of athletes and broaden sporting horizons. Below is an example of our contri- bution to society through sports.

Special Support for High School Rugby

Japan’s Next Generation of Athletes! Special Support for the Kobelco Cup 2015

The Kobelco Cup 2015 (11th Annual All-Japan High School Inter-School Team Rugby Tournament) and 5th Annual All-Japan High School Girls' Inter-School Team Rugby Sevens Tournament was held July 30-August 2, 2015 at Sugadaira, in Ueda, Nagano Prefecture. The Kobelco Cup is often called the “other Hanazono,” in recognition of the number of participants who have gone on each year to become national level athletes. “Hanazono” is a reference to the nickname for the annual National High School Rugby Tournament. First held in 2005, 2015 marked the Kobelco Cup’s 11th year.

Supporting Future Generations Kobelco Community Contribution Fund The Kobe Steel Group established the Kobelco Community Contribution Fund in 2006 to celebrate its 100th anniversary. The fund supports activities for children in the community conducted by municipal facilities and organizations in areas where Group offices, plants and research institutes are located. In fiscal 2014, 19 Kobe Steel and Group company locations supported a total of 26 projects. Funding for educational toys for Funding for large play equipment for childcare waiting list nurseries in kindergartens and nursery schools in Ibaraki City (Ibaraki Plant) Ogaki City (Shinko Engineering) Social Contribution Activities Overseas Kobe Precision Technology Sdn. Bhd. Kobelco & Materials Copper Tube (Thailand) (Malaysia) Co., Ltd. (Thailand) Helping Out with Cleanup Activities at Flood-affected Areas Support for Children Living in Rural Areas

Kobe Precision Technology Sdn. Kobelco & Materials Copper Bhd. has been carrying out volun- Tube (Thailand) Co., Ltd. has teer relief activities for flood begun offering support for damage caused by heavy rains children living in the rural and that have fallen in regions mountainous regions of Thai- throughout Malaysia since late land where opportunities for 2014, particularly in two districts education and amusement where damage was significant. In Washing and cleanup activitiesat a local can be limited. Employees Commemorative photo taken infront January 2015, volunteers visited school visit schools in these regions of donations facilities damaged by such floods to offer assistance. The focus was on to carry out cleaning and repairs and to engage in sports and recreational cleanup of the buildings' interiors (scraping off mud, washing furniture, activities, such as volleyball and soccer, with the children. They also removing debris, etc.). donate presents such as snacks, stationery and toys. Employees and their families were also among those affected by The company also carries out factory tours, which offer a chance the floods. We hope that relief efforts will help in some small way to to educate visitors on the manufacturing process and environmental reduce the burdens on all those affected. conservation activities. Kobe CH Wire (Thailand) Co., Ltd. (Thailand) Internal and External Fundraising to Support Needy Schools

Once per year, Kobe CH Wire (Thailand) Co., Ltd.’s welfare committee and other employee volunteers collect dona- tions (sporting equipment, stationery, monetary donations, etc.) from inside and outside the company for schools on the outskirts of the city. The activity, which was started independently by employees in 2009 to celebrate the com- pany's 10th anniversary, has now entered its sixth year. On September 11, 2014 a variety of items were donated to Wat Sri Phawang School in Ayutthaya Province. Volunteer activities at Kobe CH Wire are designed to assist in the healthy development of Thailand’s less fortunate children. When selecting schools for aid, the welfare committee members first investigate schools online and then visit in person before making their decision. Children receiving donated stationery supplies

36 Work Environment

Creating a Pleasant Work Environment for Employees

Kobe Steel’s human resource programs and human resource development policies respect the personality, individuality and diversity of company employees while creating a lively and attractive work environment. Programs include strong support for healthy work-life balances and the success of women in the workplace. We also cooperate with Group companies in various ways to “support each employee in developing his or her abilities, while respecting mutual cooperation” (one of the principles of the Kobe Steel Group Corporate Philosophy).

Work-Life Balance Human Resources Development

Kobe Steel is active in maintaining Human resource development at Kobe Steel aims to instill in work environments that are conducive employees a sense of pride and satisfaction in their work. To to a healthy work-life balance. Our achieve this, it is important that employees have concrete goals and efforts have garnered official praise, experience growth on a daily basis. We fully support opportunities twice receiving the government’s “Ku- for employee growth through personal diligence and dedication. rumin Mark” certification, which recog- We want each and every employee to share in a diverse nizes companies that offer strong sup- sense of value, and to feel pride and enthusiasm in their daily port for childrearing. work. To this end, we pursue a variety of training initiatives and Specifically, we have introduced Kurumin Mark have established the following image for human resources at childcare and caregiving programs that greatly exceed those the Kobe Steel Group. required by law, including extending childcare leave to include the first three years of a child's life and introducing paid child- care and family leave. Additionally, we publicize and encourage Vision for Human Resources at the Kobe Steel Group use of these programs, promoting a fulfilling work-life balance “As employees, we will continually strive and active childrearing for both female and male employees. to establish trust in KOBELCO on a global scale.” Sincerity People who take matters seriously and act in good faith Cooperation People who express their own views while also working in partnership Promoting Diversity with others and accepting their opinions In order to adapt flexibly to changes in the business environment Innovation and society and to pursue sustained development and growth, People who are never satisfied and constantly strive to innovate Kobe Steel considers appreciation for diversity to be an integral aspect of management. Promoting diversity is one of our most important management tasks. We respect the diversity of each employee and aim to create thriving workplaces and societies, where each worker is able to demonstrate their talents to the fullest. Health and Safety Management In particular we promote success for women in the workplace, actively pursuing recruitment activities that include hard targets Included in First “Health and Productivity Stock Selection” for female representation among new hires. We also offer a variety Kobe Steel was included in the “Health and of support programs for female workers after hiring, including Productivity Stock Selection” created by individual career planning to promote future prospects for young Japan’s Ministry of Economy, Trade and female workers in career-path positions. Industry and the Tokyo Stock Exchange. The In addition to promoting diversity and women in the workplace, Health and Productivity Stock Selection, we are also reexamining companywide working styles for both announced on March 25, 2015, is a list of male and female employees. We are striving to create more corporations that take employee health into pleasant working environments for all employees, including consideration during management and implement strategic efforts to eliminate excessive working hours, increase use of paid health management initiatives. This was the first year the list was vacation and improve productivity. published, and 22 companies were selected, including Kobe Steel. Health management at Kobe Steel recognizes the importance of early detection and treatment of illnesses and of improvements to lifestyles (preventive care), addressing both physical and mental health. Preventing Harassment

Kobe Steel does not condone harassment Major Initiatives in the workplace, including sexual and power harassment. In the event that One-day full medical checkups, completely covered by the company (“Kobelco Medical Check 50”) harassment occurs we respond with swift and firm measures. Early treatment of high-risk obesity (metabolic syndrome) (Exams for target ages, health guidance) Our Corporate Code of Ethics includes clear policies and standards regarding Cancer screenings, completely covered by health insurance harassment. E-learning and other training Counseling services (preventative psychological care) on preventing harassment is carried out Preventative measures geared toward improved lifestyles, and for managers, and we strive to maintain promotion of greater health consciousness (“Health challenge” program) workplace environments that are uncon- Sexual Harassment Prevention ducive to harassment. Manual

37 History of Kobe Steel

Kobe Steel: 110 Years in Business

1. The Early Years began operations. The works, featuring leading-edge facilities In 1905, our business began as Kobe Seikosho when Suzuki including three large blast furnaces, enabled us to achieve Shoten acquired Kobayashi Seikosho in Wakinohama, Kobe. our dream of supplying steel plates and sheets to the market. At first, Kobe Seikosho operated as a steel casting and forging manufacturer to produce trolley wheels and anchors. 3. Doing Business Around the World In 1926, we gained a solid foothold as a steel manufac- In 1961, the Fujisawa Plant and Ibaraki Plant were launched in turer, when we embarked on wire rod production. In 1933, order to manufacture welding electrodes close to customers. our second wire rod plant was built. In those years, Kobe In 1967, the Hatano Plant was constructed to produce copper Steel, as a wire rod manufacturer, and Yawata Iron & Steel tubes for air conditioners, refrigerators, and hot and cold water had a combined market share of 55 percent. supply. Copper tube output climbed as air conditioners became commonplace. In 1979, we completed a steel plant in Qatar, which demonstrated the real strength of our diversified approach to managing our steel and machinery businesses. Traditionally, the Machinery Division, as it was called then, played a central role in plant construction. However, the Qatar plant project earned high marks from the international community due to the advantages of our unique management approach, which included operational guidance from the Iron & Steel Division. In 1981, we began building the Moka Plant for aluminum production. The plant is now Asia’s leading aluminum rolling mill, producing automotive body material, aluminum can stock, and aluminum disk material for hard disk drives. The completion of the first phase of the Kobe Corporate Research Laboratories at Seishin, Kobe in 1987 enabled us to upgrade our research and development capabilities.

2. Expanding Operations in the High-Growth Eva 4. Recovery from the 1995 Earthquake and In 1949, we began research on titanium amid the postwar Celebrating our 100th Anniversary turmoil and pioneered the use of this light, but strong metal In January 1995, the Great Hanshin-Awaji Earthquake in industry. In 1953, Takasago Works commenced operation, destroyed our Kobe Head Office and brought the blast furnace producing steel castings and forgings including crankshafts and other production equipment at Kobe Works to a halt. At for ships and cement plants, as well as air separators and Kakogawa Works, three material unloaders were destroyed heavy-wall pressure vessels for the chemical industry. and two employees were killed. We sustained damages Takasago Works is now the major manufacturing center for totaling 102 billion yen, in what was the most serious crisis in Kobe Steel’s Machinery Business. our history. We managed to return the No.3 Blast Furnace at We were the first company in Japan to produce high-grade Kobe Works to operation within two and a half months after welding electrodes. Our welding electrodes made a major the earthquake following a massive restoration effort, which contribution to the Japanese shipbuilding industry, which was included the help of other steelmakers. the world leader in shipbuilding tonnage in 1956. Around this time, companies other than power firms were In 1958, we finally realized our long-held ambition to given permission to enter the electricity generation business, become an integrated steelmaker when Nadahama Works following deregulation in government policy. In 2004, we was inaugurated. Furthermore, we were the first Japanese completed the Shinko Kobe Power Station in Kobe. Its power engineering company to construct a plant overseas. In 1962, generation capacity of 1.4 million kilowatts makes this station we built the first Japanese fertilizer plant in East Pakistan, Japan’s largest wholesale power supply operation. known today as Bangladesh. In September 2005, the Kobe Steel Group celebrated its Japan’s rapid economic growth spurred the momentum for 100th anniversary. Over the past century, we have overcome social capital improvements. Those years saw the foundation serious adversity and many difficulties. In 2006, we adopted of our diversified management covering our metal and machin- KOBELCO as a Group brand to provide a greater shared unity ery businesses. We supplied deformed steel bars for building and increase our recognition by society. Aiming at global construction, aluminum for railway cars, construction machinery growth, the Kobe Steel Group is steadily moving ahead and for national land development, and many other products. is looking forward to the next 100 years. To meet strong demand from economic growth and to survive international competition as a steelmaker, we needed steel mills on the waterfront, with blast furnaces that could make large quantities of steel. In 1970, Kakogawa Works

38 1905 Kobe Seikosho (Kobe Steel Works) is 1989 The Tsukuba Research Laboratory for biotechnology founded by Suzuki Shoten, a general research is established. partnership company. 1990 Kobe Steel receives orders for an HIP system with the world’s 1911 The company is incorporated as Kabushiki highest operating temperature of 3,000 ˚C and an HIP Gaisha Kobe Seikosho (Kobe Steel Works, system supporting the world’s highest pressure of 10,000 Ltd.). atmospheres. 1914 A 1,200 metric ton press begins operation 1991 Kobe Steel launches a business that develops condominiums at the Steel Castings and Forging Plant. with assisted living services. Kobe Steel begins development of air 1992 Kobe Steel lists its shares on the London Stock Exchange and compressors and starts manufacturing established an American Depositary Receipt (ADR) program in the following year (first in Japan). the United States. 1926 Kobe Steel completes Japan’s first integrated 1994 Kobe Steel develops one of the world’s highest classes of cement plant. superconducting magnets. 1930 Kobe Steel begins production of Japan’s first electric mining 1995 Kobe Steel sustains losses shovel. totaling 102 billion yen 1933 Production of 7,600 horsepower diesel engines begin, caused by the Great the world’s biggest at that time. Hanshin-Awaji Earthquake. 1939 Aluminum production commences at the Chofu Works. 1996 The wholesale power supply (IPP) business is launched. 1941 Piano wire rod production begins, a Kobe Steel participates in a project to build a new city center first in Japan. in eastern Kobe. 1950 An oxygen plant is constructed, 1998 DAMP-SHAPE™ is adopted marking the start of basic oxygen steelmaking in Japan. for the 700 Series Nozomi 1951 Production of titanium metal commences. bullet trains. 1957 Phase 1 construction of the Yokohama Plant begins. Environmentally friendly Kobe Steel completes Japan’s largest titanium melting furnace. chromate-free steel sheet is developed. 1959 The Nadahama No.1 Blast Furnace is inaugurated, establishing integrated steel production. 2002 The No. 1 Power Plant of the Shinko Kobe Power Station begins commercial operation. 1960 The Central Research Laboratory is inaugurated. Kobe City awards Kobe Steel an order for a connecting bridge 1962 Kobe Steel completes a fertilizer plant in East Pakistan (now Bangladesh). It was Japan’s biggest plant export. at and a Port Liner extension. 1964 Corrosion-resistant aluminum alloy is used in all-aluminum 2004 Shinko Kobe Power Station starts operation of the No. 2 monorail cars on the Haneda Line. Power Plant, giving it a total power generation capacity of 1.4 million kilowatts. 2005 Kobe Steel celebrates its 100th anniversary. 1970 Kakogawa Works and the Structural Engineering 2006 KOBELCO is adopted as the Kobe Steel Group’s brand. Laboratory are completed. The Group formulates a Kobe Steel Corporate Philosophy. 2008 A large-scale demonstration plant using the Upgraded Brown Coal (UBC®) Process begins operation in South Kalimantan, 1975 An automated guideway transit (AGT) system called the KRT goes Indonesia. into operation at the Okinawa International Ocean Exposition. 2010 The world’s first commercial plant using the ITmk3® Process 1977 Kobe Steel receives an order to supply an AGT system commences production of iron nuggets in Minnesota, USA. and construct the Port Island Line in Kobe. The Group’s medium-to long-term business vision, KOBELCO 1979 The ARCMAN 6-axis articulated welding robot is developed. VISION “G,” is launched. KOBELCO is adopted as an international trademark. Kobelco (China) Holding Co., Ltd., is established in Shanghai 1982 The P&H KOBELCO 5650 crawler crane, among the world’s 2011 as our China headquarters. largest, is developed. 1983 The world’s largest 2,000˚C hot isostatic press is completed. 2012 Kobelco Construction Machinery completes its Itsukaichi Factory and Global Engineering Center A manufacturing facility for superalloy powder is completed. 2013 Fiscal 2013-2015 Medium-Term Business Plan is Iaunched 1985 The Biotechnology Research Laboratory opens. Wire rod with the world’s largest diameter of 60 mm is successfully produced. 2014 Kobelco Automotive Aluminum Rolled Products (China) Co., Ltd., is established in China to make aluminum sheet for automobiles. 1987 A pressure-resistant titanium alloy shell is adopted for the Shinkai 6500 research submersible. Kobelco Angang Auto Steel Co., Ltd. is established in China to make advanced cold-rolled, high-strength steel sheet for 1989 Kobe Steel’s Rugby Club automobiles. wins the National Company Rugby Championship and the All-Japan Championship for the first time.

39 Overseas Group Companies

COMPANY NAME LOCATION TEL / FAX ESTABLISHED EQUITY SHARE BUSINESS Iron & Steel Business Grand Blanc Processing, TEL: +1-810-694-6000 Investment Michigan, USA 20.0% Production and sale of CHQ wire LLC FAX: +1-810-694-5164 2003-4 Production and sale of Jiangyin Sugita Fasten TEL: +86-510-8666-8585 Jiangsu, China 2005-8 60.0% oil-tempered wire for automotive Spring Wire Co., Ltd. FAX: +86-510-8666-8989 suspension springs Kobe CH Wire (Thailand) TEL: +66-2988-0576 Bangkok, Thailand 1997-8 30.0% Production and sale of CHQ wire Co., Ltd. FAX: +66-2988-0954 Kobe Special Steel Wire TEL: +86-573-8522-3100 Zhejiang, China 2007-11 47.0% Production and sale of CHQ wire Products (Pinghu) Co., Ltd. FAX: +86-573-8522-3115 Kobe Wire Products TEL: +86-757-8540-9380 Production and sale of cold-fi nished Guangdong, China 2004-11 60.0% (Foshan) Co., Ltd. FAX: +86-757-8540-9396 steel bar and CHQ wire Kobelco Angang Auto Steel TEL: +86-412-6757635 Production and sale of automotive Liaoning, China 2014-8 49.0% Co.,Ltd. FAX: +86-412-6757635 cold-rolled, high-strength steel Kobelco CH Wire Guanajuato, — 2014-9 10.0% Production and sale of CHQ wire Mexicana, S.A. de C.V. Mexico Kobelco Spring Wire TEL: +86-757-8543-3186 Production and sale of steel wire for Guangdong, China 2012-1 50.0% (Foshan) Co., Ltd. FAX: +86-757-8543-3189 high-grade springs TEL: +66-2988-1493 Investment Production and sale of cold-fi nished Mahajak Kyodo Co., Ltd. Bangkok, Thailand 27.5% FAX: +66-2988-1008 2002-5 steel bar Microfi ne Trading TEL: +86-21-6443-5061 Sale of steel products, market Shanghai, China 2011-10 100.0% (Shanghai) Co., Ltd. FAX: +86-21-6443-5066 research, technical services Production of hot-dipped galvanized PRO-TEC Coating TEL: +1-419-943-1100 Ohio, USA 1990-3 50.0% steel sheet and cold-rolled, high- Company FAX: +1-419-943-1101 strength steel sheet Shinko Wire (Guangzhou) TEL: +020-2283-6066 Guangzhou, China 2013-7 100.0% Sale of steel products Sales Co., Ltd. FAX: +020-2283-6068 Tesac Shinko Wirerope TEL: +86-21-3313-0512 Sale of wire ropes, technical Consulting (Shanghai) Co., Shanghai, China 2011-3 100.0% FAX: +86-21-3313-0515 support, consulting Ltd. Welding Business Kobe MIG Wire (Thailand) Samutprakarn, TEL: +66-2324-0588 Manufacture and sale of solid 1988-9 66.0% Co., Ltd. Thailand FAX: +66-2324-0797 welding wires for carbon steel Kobe Welding (Malaysia) TEL: +60-4-3905792 Manufacture and sale of covered Penang, Malaysia 1995-4 85.0% Sdn. Bhd. FAX: +60-4-3905827 electrodes for mild steel Kobe Welding of Korea Co., Kyungnam, South TEL: +82-55-292-6886 Manufacture and sale of fl ux-cored 1995-3 91.0% Ltd. Korea FAX: +82-55-292-7786 wires for mild steel Kobe Welding of Shanghai TEL: +86-21-6191-7850 Sale of welding materials, welding Shanghai, China 2010-2 100.0% Co., Ltd. FAX: +86-21-6191-7851 systems and parts. Kobe Welding of Tangshan TEL: +86-315-3852805 Manufacture and sale of solid Hebei, China 2002-11 48.0% Co., Ltd. FAX: +86-315-3852829 welding wires for carbon steel Kobe Welding of Qingdao TEL: +86-532-8098-5005 Manufacture and sale of fl ux-cored Qingdao, China 2008-2 90.0% Co., Ltd. FAX: +86-532-8098-5008 welding wires for mild steel Kobelco Welding Asia TEL: +65-6268-2711 Manufacture and sale of covered Singapore 1979-1 100.0% Pacifi c Pte. Ltd. FAX: +65-6264-1751 electrodes for mild steel Kobelco Welding India Pvt. TEL: +91-124-4010063 Sale of welding materials, welding Haryana, India 2011-6 80.0% Ltd. FAX: +91-124-4010068 systems and parts Kobelco Welding Market- Busan, South TEL: +82-51-329-8999 2011-4 51.0% Sale of welding materials ing of Korea Co., Ltd. Korea FAX: +82-51-329-8949 Kobelco Welding of TEL: +1-281-240-5600 Texas, USA 1990-3 100.0% Sale of welding materials America Inc. FAX: +1-281-240-5625 Manufacture and sale of fl ux-cored Kobelco Welding of Europe Heerlen, TEL: +31-45-547-1111 1994-6 94.6% wires for stainless steel and B.V. Netherlands FAX: +31-45-547-1100 fl ux-cored wires for carbon steel Thai-Kobe Welding Co., Samutprakarn, TEL: +66-2324-0588 Manufacture and sale of covered 1968-4 40.7% Ltd. Thailand FAX: +66-2324-0797 electrodes for mild steel

40 COMPANY NAME LOCATION TEL / FAX ESTABLISHED EQUITY SHARE BUSINESS Aluminum & Copper Business Welding Business Kobe Aluminum Automotive TEL: +86-512-6878-7060 Manufacture and sale of aluminum Jiangsu, China 2010-9 60.0% Products (China) Co., Ltd. FAX: +86-512-6878-7066 forgings for automotive suspensions Manufacture and sale of aluminum Kobe Aluminum Automotive TEL: +1-270-842-6492 forgings for automotive suspensions Kentucky, USA 2003-5 60.0% Products, LLC FAX: +1-270-846-4648 and aluminum cast rods for Machinery Business compressors Kobe Electronics Material Ayutthaya, TEL: +66-35-314-070 Copper coil slitting, sale of copper 2001-9 100.0% (Thailand) Co., Ltd. Thailand FAX: +66-35-314-065 strips for electronic materials Kobe Precision Technology Manufacture and sale of aluminum Penang, Malaysia TEL: +60-4362-7222 1992-2 100.0% Sdn. Bhd. substrates for hard disks Kobelco Automotive Production and sale of aluminum Aluminum Rolled Products Tianjin, China — 2014-1 100.0% sheet for automotive panels (China) Co., Ltd. Kobelco & Materials TEL: +60-3-5191-2601 Manufacture and sale of copper Copper Tube (Malaysia) Ehsan, Malaysia 1987-10 100.0% FAX: +60-3-5191-2611 tubes and tube parts Sdn. Bhd. Kobelco & Materials Manufacture and sale of inner- TEL: +66-3896-1962 Copper Tube (Thailand) Rayong, Thailand 1996-11 100.0% grooved copper tubes and smooth FAX: +66-3896-1965 Co., Ltd. bore tubes for air conditioners TEL: +65-6261-0788 Copper coil slitting, Manufacture and Singapore Kobe Pte. Ltd. Singapore 1976-8 100.0% FAX: +65-6265-7926 sale of leadframes Suzhou Kobe Copper TEL: +86-512-8717-1555 Copper coil slitting, sale of copper Kobelco CranesJiangsu, China 2005-5 100.0% Technology Co., Ltd. FAX: +86-512-8717-1550 strips for electronic materials Machinery Business Beijing Kobelion Kobelco TEL: +86-10-6771-0301 Beijing, China 2011-1 100.0% Sale of standard compressors Compressors Corporation FAX: +86-10-6771-0367, 0357 KOBELCO Advanced TEL: +1-847-520-6000 Illinois, USA 2006-8 100.0% PVD toll coating services Coating (America), Inc. FAX: +1-847-520-6222 Manufacture, sale, after-sales service Kobelco Advanced Lube- Busan, South TEL: +82-51-205-0794 2013-6 50.0% and maintenance of industrial system Asia Co., Ltd. Korea machinery/compressor LO units, etc. Manufacture and sale of process Kobelco Compressors TEL: +1-951-739-3030 gas compressor system, refrigera- California, USA 2006-2 100.0% America, Inc. FAX: +1-951-739-3029 tion systems, pressure vessels and heat exchangers Kobelco Compressors TEL: +1-574-295-3145 Acquisition Manufacture and sale of screw Indiana, USA 100.0% Manufacturing Indiana, Inc. FAX: +1-574-293-1641 1988-9 compressors Kobelco Compressors TEL: +86-21-3996-6381 Manufacture and sale of standard Manufacturing (Shanghai) Shanghai, China 2004-2 100.0% FAX: +86-21-3996-6380 compressors Corporation Kobelco Compressors TEL: +86-21-3996-6392 Shanghai, China 2000-10 96.8% Sale of standard compressors (Shanghai) Corporation FAX: +86-21-3996-6389, 6390 Kobelco Compressors TEL: +86-20-3878-5361 (Shanghai) Corporation Shenzhen, China 2014-11 100.0% Sale of standard compressors FAX: +86-20-3878-5253 Guangdong Branch Sale and service of standard Kobelco Machinery Asia TEL: +65-6261-5807 Singapore 1999-1 100.0% compressors and industrial Pte. Ltd. FAX: +65-6261-3719 machinery Kobelco Machinery do Marketing, sale and after-sales Sao Paulo, Brazil TEL: +55-11-2186-0265 2013-11 100.0% Brasil Ltda. service of nonstandard compressors Kobelco Machinery Europe Sale of nonstandard compressors, Munich, Germany TEL: +49-89-5434-478-0 2012-7 100.0% GmbH parts procurement Kobelco Machinery India TEL: +91-33-4011-5222 Marketing and sale of steel produc- West Bengal, India 2009-6 90.0% Pte. Ltd. FAX: +91-33-4011-5223 tion and metalworking machinery Kobelco Machinery Middle After-sales service of nonstandard Dubai, UAE TEL: +971-4-238-4009 2012-7 100.0% East FZE. compressors

3941 COMPANY NAME LOCATION TEL / FAX ESTABLISHED EQUITY SHARE BUSINESS Kobelco Stewart Bolling, TEL: +1-330-655-3111 Acquisition Manufacture and sale of tire, rubber Ohio, USA 100.0% Inc. FAX: +1-330-656-9724 1989-6 and plastics processing machinery L&T Kobelco Machinery Manufacture and sale of rubber Tamil Nadu, India TEL: +91-44-6720-2300 2010-11 49.0% Pte. Ltd. mixers and extruders Yiyang Yishen Rubber TEL: +86-737-620-3330 Manufacture and sale of tire curing Hunan, China 1995-9 25.0% Machinery Co., Ltd. FAX: +86-737-620-3035 presses TEL: +86-510-8502-4889, Investment Design, manufacture and sale of Wuxi Compressor Co., Ltd. Zhejiang, China Ext.98883 44.3% 2011-4 nonstandard compressors FAX: +86-510-8501-9865 Engineering Business

Midrex Metallurgy Sales, support and engineering for Chinese projects Shanghai, China TEL: +86-21-61573700 2011-5 100.0% Technology Services * A subsidiary company of Midrex (Shanghai) Ltd. * Technologies, Inc. Sales, engineering and technical North Carolina, TEL: +1-704-373-1600 Acquisition Midrex Technologies, Inc. 100.0% services for direct reduction USA FAX: +1-704-373-1611 1983-8 processes

Midrex Technologies India Sales and support for Indian projects Haryana, India TEL: 0124-4908712 2011-7 100.0% * A subsidiary company of Midrex Pte. Ltd.* Technologies, Inc. Project fi nancing and support Midrex UK Ltd. * London, UK TEL: +44-207-0891520 2009-5 100.0% * A subsidiary company of Midrex Technologies, Inc. Kobelco Eco-Solutions Planning, provision, construction and Kobelco Eco-Solutions maintenance management of water Selangor, Malaysia — 2012-2 100.0% (Malaysia) Sdn. Bhd. treatment facilities, sale of spare parts, chemicals and consumables, etc. Planning, construction and maintenance Kobelco Eco-solutions Ho Chi Minh City, TEL: +84-8-3933-0646 management of water, sewage and 2010-11 100.0% Vietnam Co., Ltd. Vietnam FAX: +84-8-3933-0622 waste treatment facilities, production of glass-lined instruments, etc. Kobelco Construction Machinery Chengdu Kobelco TEL: +86-28-479-0028 Construction Machinery Sichuan, China 1994-9 89.0% Manufacture of hydraulic excavators FAX: +86-28-479-1622 Co., Ltd. Chengdu Kobelco TEL:+028-8841-2070 Leasing of hydraulic excavators and Construction Machinery Sichuan, China 2008-2 76.0% FAX:+028-8841-2071 related equipment in China Financial Leasing Ltd. Chengdu Kobelco TEL:+028-8841-2188 Sales and service operations in Construction Machinery Sichuan, China 2003-7 56.0% FAX:+028-8841-2166 China (Group) Co., Ltd. Hangzhou Kobelco TEL: +86-571-2889-6588 Construction Machinery Zhejiang, China 2003-12 51.0% Manufacture of hydraulic excavators FAX: +86-571-2889-6566 Co., Ltd. Kobelco Construction Uttar Pradesh, TEL: +91-120-4079900 Manufacture, sales and service 2006-11 95.0% Equipment India Pvt. Ltd. India FAX: +91-120-4079999 operations in India Kobelco Construction New South Wales, TEL: +61-2-8863-4900 Sales and service operations in Machinery Australia Pty. 2001-8 100.0% Australia FAX: +61-2-8863-4999 Australia and New Zealand Ltd. Sales and service operations in Kobelco Construction Almere, TEL: +31-36-2020-300 2013-6 100.0% Europe, Russia-CIS, Maghreb-West Machinery Europe B.V. Netherlands Africa, and Israel Kobelco Construction TEL: +60-3-5192-7533 Sales and service operations in Machinery Malaysia Sdn. Selangor, Malaysia 1982-12 100.0% FAX: +60-3-5192-5855 Malaysia Bhd. Kobelco Construction Sales and service operations in Texas, USA TEL: +1-281-888-8430 2001-7 100.0% Machinery U.S.A. Inc. North, Central and South America

42 COMPANY NAME LOCATION TEL / FAX ESTABLISHED EQUITY SHARE BUSINESS Kobelco Construction TEL: +84-61-3834-656 Sales and service operations in Machinery Vietnam Co., Dong Nai, Vietnam 2004-6 100.0% FAX: +84-61-3834-665 Vietnam Ltd. Kobelco International (S) TEL: +65-6268-8200 Sales and service operations in Singapore 1999-9 100.0% Co., Pte. Ltd. FAX: +65-6261-3719 Southeast Asia Kobelco Precision TEL:+0571-2889-3025 Manufacture and sales of construc- Machinery Hangzhou Co., Zhejiang, China 2010-12 100.0% FAX:+0571-2889-3028 tion machinery parts Ltd. P.T. Daya Kobelco TEL: +62-21-7592-2828 Sales and service operations in Construction Machinery Jakarta, Indonesia 2000-11 100.0% FAX: +62-21-7592-2822 Indonesia Indonesia TEL: +65-6862-2401 Sales and service operations in Ricon Private Limited Singapore 1975-4 75.0% FAX: + 65-6861-5828 Singapore Thai Kobelco Construction TEL: +66-3895-0040 Rayong, Thailand 1996-2 100.0% Manufacture of hydraulic excavators Machinery Ltd. FAX: +66-3895-0045 Kobelco Cranes Chengdu Kobelco Cranes TEL: +86-28-6508-5564 Manufacture, sales and service Sichuan, China 2010-10 51.0% Co., Ltd. FAX: +86-28-6508-5577 operations of cranes in China Kobelco Cranes Europe TEL: +44-1342-301122 Sales and service operations of West Sussex, UK 2003-9 100.0% Ltd. FAX: +44-1342-326987 cranes in Europe and Africa Kobelco Cranes India Pvt. TEL: +91-11-40151900 Manufacture, sales and service New Delhi, India 2010-8 99.78% Ltd. FAX: +91-11-40151952 operations of cranes in India Kobelco Cranes Middle TEL: +971-6-557-8114 Sales and service operations of Sharjah, UAE 2008-11 100.0% East FZE. FAX: +971-6-557-8115 cranes in the Middle East Sales and service operations of Kobelco Cranes North TEL: +1-713-856-5755 Texas, USA 2003-11 100.0% cranes in North, Central and South America Inc. FAX: +1-713-856-9072 America Kobelco Cranes (Shanghai) TEL: +86-21-5382-0120 Sales and service operations of Shanghai, China 2010-2 100.0% Co., Ltd. FAX: +86-21-5382-2090 cranes in China Kobelco Cranes South East TEL: +65-6268-1308 Sales and service operations of Singapore 2007-6 100.0% Asia Pte. Ltd. FAX: +65-6268-2490 cranes in South East Asia Other Businesses Employee training, human resources Beijing Oriental Shentong TEL: +86-10-6777-1333 Beijing, China 2004-4 33.3% development and consulting, Expert Training Co., Ltd. FAX: +86-10-6597-4448 publishing, employment screening Kobelco Logistics TEL: +86-21-6473-0982 International freight forwarding of Shanghai, China 2011-6 100.0% (Shanghai) Ltd. FAX: +86-21-6473-0171 import and export cargo Precision processing of conveyor parts for vacuum equipment for Kobelco Precision Parts TEL: +86-512-8187-8277 Jiangsu, China 2010-12 80.0% manufacturing LCDs, semiconductors (Suzhou) Co., Ltd. FAX: +86-512-8187-8272 and solar panels; bonding of target material for LCD panels Shanghai, China Beijing, China Import/export and trading of iron and Kobelco Trading (Shang- Guangzhou, China TEL: +86-21-5396-6464 steel, raw materials, nonferrous 2006-9 100.0% metals, machinery, welding materials hai) Co., Ltd. Chengdu, China FAX: +86-21-5396-5975 and products for the information Dalian, China industry Wuhan, China Consulting for international trading Shanghai Shinsho Trading TEL: +86-21-5396-6464 and other trading, trading in compa- Shanghai, China 1998-4 100.0% Co., Ltd. FAX: +86-21-5396-5975 nies of bonded area and commer- cialpurpose simple processing. Cutting and chamfering, cold forging Shinsho Osaka Seiko TEL: +86-513-8919-1055 processing and shaving processing for Jiangsu, China 2013-1 55.0% (Nangtong) Corporation FAX: +86-513-8919-1056 round stick of specialty steel and import/ export and trade of these products Suzhou Shinko-Shoji TEL: +86-512-6287-1233 Slitting, shearing and sale of Jiangsu, China 2006-7 100.0% Material Co., Ltd. FAX: +86-512-6287-1231 aluminum sheets and strips

3943 Kobe Steel Business Locations

Head Offi ces / Branch Offi ces / Sales Offi ces Kobe Head Offi ce 2-4, Wakinohama-Kaigandori 2-chome, Chuo-ku, Kobe, Hyogo 651-8585, Japan Tel. +81-78-261-5111 Fax. +81-78-261-4123 ON Building, 9-12, Kita-Shinagawa 5-chome, Shinagawa-ku, Tokyo 141-8688, Tel. +81-3-5739-6000 Fax. +81-3-5739-6903 Tokyo Head Offi ce Japan Midosuji Mitsui Building, 1-3, Bingomachi 4-chome, Chuo-ku, Osaka, Osaka Tel. +81-6-6206-6111 Fax. +81-6-6206-6101 Osaka Branch Offi ce 541-8536, Japan Nagoya Prime Central Tower 15th Floor, 27-8, Meieki 2-chome, Nishi-ku, Nagoya, Tel. +81-52-584-6111 Fax. +81-52-584-6105 Nagoya Branch Offi ce Aichi 451-0045, Japan Nippon Seimei Kitamonkan Building, 1-3, Kita-Shijo Nishi 5-chome, Chuo-ku, Tel. +81-11-261-9331 Fax. +81-11-251-2533 Hokkaido Sales Offi ce Sapporo, Hokkaido 060-0004, Japan Sendai NS Building, 2-25, Ichibancho 1-chome, Aoba-ku, Sendai, Miyagi Tel. +81-22-261-8811 Fax. +81-22-261-0762 Tohoku Sales Offi ce 980-0811, Japan Nippon Seimei Niigata Building, 4-10, Higashiodori 2-chome, Chuo-ku, Niigata, Tel. +81-25-245-8681 Fax. +81-25-243-1645 Niigata Sales Offi ce Niigata 950-0087, Japan Hokuriku Sales Offi ce Urban Place, 18-7, Ushijimacho, Toyama, Toyama 930-0858, Japan Tel. +81-76-441-4226 Fax. +81-76-442-4088 Takamatsu Kogin Building, 6-8, Bancho 1-chome, Takamatsu, Kagawa 760-0017, Tel. +81-87-823-7222 Fax. +81-87-823-7333 Shikoku Sales Offi ce Japan Meiji Yasuda Seimei Hiroshima Building 11th Floor, 4-25, Fukuromachi, Naka-ku, Tel. +81-82-258-5301 Fax. +81-82-258-5309 Chugoku Sales Offi ce Hiroshima, Hiroshima 730-0036, Japan Shinkansen Hakata Building, 1-1, Hakataeki Chuogai, Hakata-ku, Fukuoka, Tel. +81-92-431-2211 Fax. +81-92-432-4002 Kyushu Sales Offi ce Fukuoka 812-0012, Japan Naha Shintoshin Media Building-West, 3-31, Omoromachi 1-chome, Naha, Tel. +81-98-866-4923 Fax. +81-98-869-6185 Okinawa Sales Offi ce Okinawa 900-0006, Japan Takasago Works 3-1, Araicho Shinhama 2-chome, Takasago, Hyogo 676-8670, Japan Tel. +81-79-445-7111 Fax. +81-79-445-7231 Research Laboratories Kobe Corporate 5-5, Takatsukadai 1-chome, Nishi-ku, Kobe, Hyogo 651-2271, Japan Tel. +81-78-992-5600 Fax. +81-78-992-5532 Research Laboratories Works and Plants Kakogawa Works 1, Kanazawacho, Kakogawa, Hyogo 675-0137, Japan Tel. +81-79-436-1111 Fax. +81-79-436-1400 Research & 2222-1, Onoecho Ikeda, Kakogawa, Hyogo 675-0023, Japan Tel. +81-79-427-5000 Fax. +81-79-427-5072 Development Laboratory Kobe Works 2, Nadahama Higashicho, Nada-ku, Kobe, Hyogo 657-0863, Japan Tel. +81-78-882-8030 Fax. +81-78-882-8290 Fujisawa Plant 100-1, Miyamae, Fujisawa, Kanagawa 251-8551, Japan Tel. +81-466-20-3111 Fax. +81-466-20-3115 Ibaraki Plant 2-19, Higashi-Unobecho, Ibaraki, Osaka 567-0879, Japan Tel. +81-72-621-2111 Fax. +81-72-621-2015 Saijo Plant 6400-1, Saijocho Misonou, Higashi-Hiroshima, Hiroshima 739-0024, Japan Tel. +81-82-423-3311 Fax. +81-82-420-0038 Fukuchiyama Plant 36, Osadanocho 3-chome, Fukuchiyama, Kyoto 620-0853, Japan Tel. +81-773-27-2131 Fax. +81-773-27-6358 Moka Plant 15, Kinugaoka, Moka, Tochigi 321-4367, Japan Tel. +81-285-82-4111 Fax. +81-285-84-0231 Chofu Works 14-1, Chofu Minatomachi, Shimonoseki, Yamaguchi 752-0953, Japan Tel. +81-83-246-1211 Fax. +81-83-246-1271 Daian Plant 1100, Daiancho Umedo, Inabe, Mie 511-0284, Japan Tel. +81-594-77-0330 Fax. +81-594-77-2249 Harima Plant 41, Niijima, Harimacho, Kako-gun, Hyogo 675-0155, Japan Tel. +81-79-436-2101 Fax. +81-79-436-2199 Overseas Offi ces Kobe Steel USA Inc. (US headquarters, New York head offi ce) Tel. +1-212-751-9400 Fax. +1-212-355-5564 NEW YORK 535 Madison Avenue, 5th Floor, New York, NY 10022, U.S.A. Kobe Steel USA Inc. (US headquarters, Detroit branch) Tel. +1-734-462-7757 Fax. +1-734-462-7758 DETROIT 19575 Victor Parkway, Suite 250 Livonia, MI 48152, U.S.A. Kobe Steel Asia Pte. Ltd. (Singapore head offi ce) SINGAPORE Tel. +65-6221-6177 Fax. +65-6225-6631 72 Anson Road, #11-01A Anson House, Singapore 079911, Republic of Singapore Kobe Steel Asia Pte. Ltd. (Hong Kong Offi ce) Tel. +852-2865-0040 Fax. +852-2520-6347 HONG KONG Room 1604, MassMutual Tower, 38 Gloucester Road, Wanchai, Hong Kong Kobe Steel, Ltd. Bangkok Offi ce Tel. +66-2636-8971 10th Floor, Sathorn Thani Tower ll, 92/23 North Sathorn Road, Khwaeng Silom, Fax. +66-2636-8675 BANGKOK to 8974 Khet Bangrak, Bangkok 10500, Kingdom of Thailand Kobe Steel, Ltd. Beijing Offi ce Tel. +86-10-6461-8491 Unit 1005, Building A, The Lucky Tower, No. 3 North Dongsanhuan Road, Chaoyang Fax. +86-10-6461-8490 BEIJING to 8493 District, Beijing 100027, People’s Republic of China Kobelco (China) Holding Co., Ltd. (China headquarters, investment company) SHANGHAI Room 3701, Hong Kong New World Tower, No. 300 Middle Huaihai Road, Luwan Tel. +86-21-6415-4977 Fax. +86-21-6415-9409 District, Shanghai 200021, People’s Republic of China

44 www.kobelco.com

Publicity Group, Kobe Steel, Ltd.

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