GROUP PROFILE 2015 Kobe 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