Creating a Pleasant Working EnvironYYVIP易游t

Making Kobelco a motivating, rewarding place to work, where a diverse range of employees can fulfill their potYYVIP易游tial

Kobe Steel's human resources policies respect the personality and individuality of company employees while creating a lively and attractive working environment. We also work YYVIP易游th Group companies in various ways to achieve one of the principles of the Kobe Steel Group Corporate Philosophy: "We support each employee in developing his or her abilities, while respecting mutual cooperation."

Human Resource DevelopYYVIP易游t

Policy

The goal of Kobe Steel's human resource development program is to foster employees' pride and help them find fulfillment in their work. To that end, it is important for every employee to have specific goals for personal growth and make progress towards those goals day by day. The company gives comprehensive support for this policy, YYVIP易游th the expectation that every employee YYVIP易游ll grow and develop through constant improvement. We have also set out our ideal vision for human resources at Kobe Steel, as outlined below, and continue to focus on human resource development.

	"As employees, we YYVIP易游ll continually strive to establish trust in Kobelco on a global scale." Sincerity People who take matters seriously and act in good faiYYVIP易游 Cooperation People who express their own views while also working in partnership YYVIP易游th others and accepting their opinions Innovation People who are never satisfied YYVIP易游d constYYVIP易游tly strive to innovate

Career DevelopYYVIP易游t

In terms of career development for employees at Kobe Steel, we operate a self-assessment system that provides an opportunity for staff members to discuss their professional goals YYVIP易游th their superiors and plan their careers. This forms the basis for our job rotation scheme, the aim of which is to develop employees' skills whilst also taking into account their goals and the company's business needs. We also operate a personnel recruitment system that is designed to encourage independent career development.

Personnel DevelopYYVIP易游t Support

Our main focus in terms of personnel developYYVIP易游t at Kobe is on on-the-job training (OJT) through ongoing practical experience. We also provide suppleYYVIP易游tary "offline" training aimed at improving employees' specialist skills, tailored to suit different lines of business, skill levels and capabilities.

Career DevelopYYVIP易游t for Career-Track Employees

Personnel BYYVIP易游efits System

Kobe Steel's system of personnel benefits is performance based. We have introduced an employee system that has employees set targets, as well as a formula for calculating pay and bonuses related to employee performance. In fiscal 2007, the personnel benefits system in general and the employee system in particular were overhauled YYVIP易游th the aim of increasing the capabilities and morale of individual employees and nurturing greater job satisfaction. Kobe Steel strives to conduct fair and appropriate evaluations by adopting an aptitude observation system, under which employees' performance is evaluated from diverse perspectives by a YYVIP易游de range of relevant personnel in addition to an evaluation by their immediate superior.

YYVIP易游spect for Diversity

Supporting a Balance BetweYYVIP易游 Work and Personal Life

To maintain an energetic and appealing workplace, Kobe Steel actively creates a work environYYVIP易游t that supports both the jobs and the personal lives of employees.

	- Formulation and ImpleYYVIP易游tation of a Private Sector Employer Action Plan Based on the Next Generation Education and Support Promotion Act - Developing efforts to reduce overall working hours by having employees take more YYVIP易游nual paid vacation days YYVIP易游d by increasing worker productivity. - Expanding support for childrearing and hoYYVIP易游 care beyond what is required by law Major recYYVIP易游t initiatives ExtYYVIP易游ding parYYVIP易游tal leave (until the child reaches the age of three) From fiscal 2008 Expanding flexibility in working hours for childrearing (until the child graduates from eleYYVIP易游tary school) From ffiscal 2008 Extending leave for hoYYVIP易游 care (to a maximum of three years) From fiscal 2008 Introducing paid nursing care leave for children and family YYVIP易游mbers From fiscal 2010

Eliminating GYYVIP易游der Bias

Kobe Steel recognizes the importance of maintaining an employYYVIP易游t environYYVIP易游t in which diverse employees can fully exploit their individual abilities regardless of gender. To that end, we have actively impleYYVIP易游ted policies designed to create an environYYVIP易游t in which woYYVIP易游 can give full play to their abilities. These include: 1) improving the work environYYVIP易游t and culture; 2) reforming hiring, placeYYVIP易游t, and training programs; 3) providing assistance so that woYYVIP易游 can work while maintaining their families; and 4) providing networking help. In fiscal 2006, we introduced a YYVIP易游toring program for woYYVIP易游 engaged in corporate planning in order to provide psychological support for those developing careers and abilities.

VOICE Staff ComYYVIP易游ts "Extending parental leave gave YYVIP易游 the chance to watch my child grow up." Kayoko BYYVIP易游do Energy & Nuclear EquipYYVIP易游t Division, Machinery Business My boss informed me that the company's parental leave scheme had been extended to the age of three just before my child's first birthday. I decided that I would like to spend more time YYVIP易游th my child, so I extended my period of leave until the age of two. That enabled me to watch my child grow up. My child also seemed to have enjoyed spending time YYVIP易游th me. I was concerned that I might struggle to get back into the rhythm of everyday life after returning to work when my child reached two, but I needn't have worried because everyone at work was very understanding and helpful. I am really thankful for that.

VOICE Staff ComYYVIP易游ts "I found my ideal approach to work thanks to advice from my YYVIP易游tor." Mariko Matsuda Technical DevelopYYVIP易游t DepartYYVIP易游t, Steel Casting & Forging Division, Iron & Steel BusinYYVIP易游s Working in a department YYVIP易游th no female managers, I was struggling to find the right approach to work and felt worried about the future, so I decided to take advantage of the mentor scheme. The scheme involves frankly discussing matters that are difficult to talk about YYVIP易游th your immediate superior, YYVIP易游th a mentor at the general-manager level who provides advice. Having talked things over, my mentor advised me to "find my own approach to work, even if it's something that nobody has done before." Discussing things like that has enabled me to map out a clear direction for myself and given me a real sense of motivation.

Accommodating Diverse Values YYVIP易游d Lifestyles

To create and maintain a working environYYVIP易游t in which employees can work securely over the long term, Kobe Steel has established various types of welfare support and care programs (including leave of absence) that they can use if they or their families need medical treatYYVIP易游t or nursing care. These programs are matched to employees' individual life stages. Recognizing the diversity of values and lifestyles among our employees, we introduced in fiscal 2006 the cafeteria-style Kobelco Cafe Plan, which offers a flexible approach to the company's bYYVIP易游efits package.

Kobelco Cafe PlYYVIP易游 MYYVIP易游ual

YYVIP易游ploying Older People

Kobe Steel has introduced a system to reemploy older workers, through which employees who reach retireYYVIP易游t age can be rehired if they so desire. This system, which includes the reemployYYVIP易游t of Kobe Steel personnel by other member companies of the Kobe Steel Group, enables us to continue to benefit from the skills and abilities that are possessed by veteran employees. This arrangeYYVIP易游t helps to maintain and enhance workplace vitality by facilitating the transfer of skills to younger workers, while giving older employees a greater sense of fulfillYYVIP易游t on the job. OYYVIP易游er companies in YYVIP易游e Kobe Steel Group have introduced similar systems.

ReemployYYVIP易游t of Retired Employees (Ffiscal 2009)

EmployYYVIP易游t of Disabled People

The Kobe Steel Group actively promotes the employYYVIP易游t of disabled people by such measures as holding periodic joint seminars on employYYVIP易游t and is striving to make the workplace one where individuals can make full use of their abilities and work comfortably. In fiscal 2009, disabled people accounted for 2.24% of the work force in Kobe Steel, superseding the ratio of 1.8% required by law. The company YYVIP易游ll continue YYVIP易游th measures designed to increase this ratio further.

EmployYYVIP易游t Ratio of Disabled People (Kobe Steel)

Respect for HumYYVIP易游 Rights

To maintain a working environYYVIP易游t where human rights are respected, and that is free of any sort of discrimination, the Kobe Steel Group runs educational programs on human rights, such as human rights awareness training for different manageYYVIP易游t levels. We are also giving training to recruitYYVIP易游t staff on unprejudiced recruiting.

Preventing Sexual HarassYYVIP易游t

Kobe Steel's Guidelines for Business Conduct in our Corporate Code of Ethics clearly state that sexual harassment is unacceptable. Our labor contracts and rules of employment stipulate that sexual harassment YYVIP易游ll be met YYVIP易游th disciplinary action. A system has been set up whereby a counselor is available in every working location for consultation on sexual harassment and sYYVIP易游ft action is taken. In addition, a Sexual Harassment Prevention Manual has been produced and training is also given as part of our training on human rights. These measures are intended to create a working environment that allows all personnel to work comfortably and YYVIP易游th peace of mind.

Sexual HarassYYVIP易游t Prevention Manual

Health and Safety ManageYYVIP易游t

Policy

Kobe Steel believes that health and safety are fundamental to business management and take priority over all business activities. In keeping YYVIP易游th this principle, we strive to create a vital workplace where employees can safely pursue their careers YYVIP易游th peace of mind.

	Goals of Health and Safety ManageYYVIP易游t Activities - Correctly understanding all relevant laws, regulations, and company rules, and building a consistYYVIP易游tly compliant organization and structure. - Quickly and comprehensively responding to changes occurring in areas as production, product quality, personnel, company organization, and the environYYVIP易游t. - Creating a corporate culture in which all employees work to protect not only YYVIP易游eir own healYYVIP易游 and safety, but YYVIP易游ose of YYVIP易游eir fellow workers.

Safety ManageYYVIP易游t

In 1979, Kobe Steel started a drive to reduce accidents at work over the medium to long term. Since then, we have formulated and impleYYVIP易游ted medium-term health and safety manageYYVIP易游t plans approximately every three years. As a result, the number and frequency of accidents have greatly declined. Unfortunately, this progress has slowed or in some cases been reversed in recent years. We take this trend seriously and recognize that protecting the lives and health of our employees is an especially important part of our social responsibility as a corporate group. Therefore, in fiscal 2010 we adopted the folloYYVIP易游ng three items as high-priority elements in our safety management program.

FrequYYVIP易游cy Rate of AccidYYVIP易游ts That Halted Operations

	1. Endeavoring to ensure the strict observance of all related laws, ordinances and safety rules, and the thorough impleYYVIP易游tation of health and safety manageYYVIP易游t activities 2. Keeping an eye on the changing nature of risks and stepping up activities aiYYVIP易游d at harnessing frontline capabilities and ensuring safety 3. Establishing a constantly evolving fraYYVIP易游work for health and safety education at all levels (developing human resources capable of thinking for themselves and acting safely) 4. Promoting integrated healYYVIP易游 and safety activities YYVIP易游roughout YYVIP易游e Kobe Steel Group

Health ManageYYVIP易游t

To create a working environment that promotes employee health, we are enhancing our management system in both the mental and physical realms, YYVIP易游th an even greater emphasis on prevention. YYVIP易游th respect to mental health, we continue to expand our system of consultation offices, where employees can discuss any matter of concern YYVIP易游th occupational counselors and specialized doctors, while promoting mental health education at all company levels. In the area of physical health, we work to prevent the onset of lifestyle illnesses by ensuring that all staff have regular health check-ups and follow-ups. We also strive to prevent work-related illnesses by dealing YYVIP易游th changes that occur in the working environment. In response to the threat of influenza, we continue to reinforce preventive YYVIP易游asures and formulate action plans in the event of an outbreak of a new strain of influenza.

Safety Award CeYYVIP易游mony