2016-2020 to Progress in Industry and Society in the Years to Come

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. The Kobe Steel Group offers distinctive, trustworthy products and technologies in a wide variety of fields, including materials, machinery and electric power. The entire Group strives to ensure that people throughout the world recognize KOBELCO as the brand of a trustworthy corporate group. 01 CONTENTS 03 Message from the President 05 Group Profile 07 Corporate Strengths 09 Main Domestic Locations 11 Main Overseas Locations 13 Medlum- to Long-Term Business Vision of the Kobe Steel Group 19 Technical Development 21 Recent Topics 23 Business Segments 23 Iron & Steel 25 Welding 27 Aluminum & Copper 29 Machinery 31 Engineering 35 Construction Machinery 37 Electric Power 39 Other Businesses 40 Corporate Social Responsibility 41 Environmental Management 42 Initiatives Through Rugby 43 Work Environment 45 Social Contributions 47 History of Kobe Steel 49 Overseas Group Companies 54 Kobe Steel Business Locations 02 Message from the President Contributing to society and industry through During the second stage of the vision, the Fiscal 2013-2015 Medium-Term Business Plan, we worked to restructure our manage- integrated management of diverse businesses ment base by strengthening profitability, focusing on the Iron & Steel Since our founding in 1905, the Kobe Steel Group has contributed Business and improving our financial standing, as well as to lay the to the development of society and industry by offering superior groundwork for stable profits and growth. products and technologies. Our businesses currently span an Specifically, in the Iron & Steel Business, we decided to consoli- impressive range of fields. One of the Kobe Steel Group’s greatest date upstream operations at Kakogawa Works, establish a steel wire advantages is its ability to provide integrated management of its rod manufacturing base in Thailand, and form a manufacturing base numerous businesses. in China to make cold-rolled, high-strength steel. In the Aluminum & The Kobe Steel Group also features a wide lineup of distinctive Copper Business, we established an automotive panel material and innovative products and technologies. Many of these products manufacturing base in China. In the Construction Machinery Busi- hold the number one share in the world market. The diversity of the ness, we set up a plant in the United States to make excavaters. technologies we have amassed over the many years is the founda- And in the Electric Power Business, we decided to build two new tion on which we enhance our manufacturing capabilities and serves power plants—one in Moka, Tochigi Prefecture and one on the as the driving force of our corporate activities. Through distinctive grounds of the Kobe Works’ blast furnace. manufacturing, we will continue to create new value and contribute In this fiscal year, we embarked on our new Fiscal 2016-2020 to progress in industry and society in the years to come. Group Medium-Term Management Plan. This is the first step in our new business vision for strengthening growth strategies through the Fiscal 2016-2020 Medium-Term Management Plan three core business areas of materials, machinery and electric and KOBELCO VISION “G+” power and for establishing a more robust business structure under KOBELCO VISION “G+.” The plus represents our desire to carry on In April 2010, the Kobe Steel Group launched the KOBELCO from the previous medium- to long-term management vision to VISION “G” medium- to long-term management vision. The “G” in further strengthen initiatives in future growth fields. the vision’s name stands for many elements, including “Global,” We aim to contribute to society, while also expanding business “Group” and “Growth.” Under this vision, we have been pursuing by capitalizing on our competitive advantage and increasing the level proactive global expansion and have worked to create products and of the original added value we offer. services only possible through our Group. 03 With a new vision geared toward the future, the Kobe Steel Group has set its sights on global growth. Hiroya Kawasaki Chairman, President, CEO and Representative Director Kobe Steel, Ltd. New growth strategies focus on three core areas: struction Machinery and Kobelco Cranes in April 2016, in addition to restructuring our operations in the Chinese market. Through this materials, machinery and electric power merger we aim to expand marketing in Europe and North America In the materials businesses, we are pursuing initiatives for weight and strengthen our presence in the global market. savings in transportation and increased profitability in the Iron & In the electric power business, we are pursuing growth aimed at Steel Business. The Kobe Steel Group handles a variety of metal achieving stable profits by 2022. In addition to our existing Kobe products, including steel, aluminum, titanium and magnesium. Some Power Plant, we are moving forward with new power supply proj- of our greatest strengths, which we expect to bring considerable ects in Moka, Tochigi Prefecture and on the grounds of the Kobe growth, are our materials technologies, such as high-strength steel Works’ blast furnace. and aluminum, and our ability to propose multimaterial solutions through joining and other technologies. In the aviation field, where Aiming for global growth supported by a stable demand is expected to grow, along with strengthening our current upstream processes for titanium manufacturing, we will also enter management base and expavd downstream operations. Together with our aluminum Strengthening our corporate management base is indispensable to and magnesium offerings, we aim to become the leading supplier in ensuring that new business strategies will be implemented accord- the Asian market. We also aim to increase profitability in the Iron & ing to plan. The Kobe Steel Group is pursuing a variety of initiatives, Steel Business by concentrating upstream processes at Kakogawa including to strengthen corporate governance, promote diversity, Works and by investing further in facilities. improve working styles by encouraging the use of paid vacation In the machinery businesses, we are pursuing energy and infra- days reduce long working hours, and effectively utilize our diverse structure initiatives and working to increase profitability in construc- range of human resources. We are also focused on activities for tion machinery. In compressors, we aim to enter new territory in the contributing to society, including forest maintenance projects and large-capacity centrifugal compressor market and strengthen our community outreach around our plants. supply network for standard compressors. In the promising growth The medium- to long-term vision, KOBELCO VISION “G+,” is an field of hydrogen-related businesses, we established a new compre- important initiative toward establishing a stronger framework for the hensive test center for hydrogen stations, and aim to strengthen Group’s future. As a global corporation, we are always ready to take research and development and establish differentiated technologies. the inintiative, meet new challenges and aim for greater growth. In the construction machinery business, we merged Kobelco Con- October 2016 04 Group Profile Company Profile Company name: Kobe Steel, Ltd. Employees Group brand: Consolidated: 36,338* Founded: September 1, 1905 Nonconsolidated: 10,833* (excluding seconded personnel) Incorporated: June 28, 1911 Subsidiary companies: 212* Capital: 250,930,033,900 yen* Affiliated companies: 56* Chairman, President and CEO: Hiroya Kawasakii * As of March 31, 2016 Organizational Structure President and CEO Iron & Steel Business Head Office Executive Vice President and Representative Director Yoshinori Onoe* Senior Managing Executive Officers Board of Directors Yukimasa Miyashita Executive Vice President and Makoto Mizuguchi Representative Director Naoto Umehara Koichiro Shibata Senior Managing Executive Officer Managing Executive Officers Hiroaki Matsubara Executive Council Takafumi Morichi Yoshihiro Oka Managing Executive Officers Executive Officers Shoji Miyazaki Kazuaki Kawahara Hajime Nagara Satoshi Nishimura Management Committee Koji Yamamoto Executive Officers Yasushi Okubo Audit & Supervisory Committee Yoshihiko Katsukawa Welding Business Technical Development Group Director, Senior Managing Executive Office Fusaki Koshiishi*

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