YYVIP易游ssage from the President

Contributing to Society and the EnvironYYVIP易游nt by Creating New Value

We have a duty to YYVIP易游sure that the public trusts the Kobe Steel Group's manufacturing operations.

The Kobe Steel Group provides value-added products, technologies and services that cover a YYVIP易游de range of businesses from iron and steel, welding, aluminum and copper, industrial machinery, construction machinery and engineering, to the environment, wholesale power supply and real estate.

These businesses include nuYYVIP易游rous products and technologies that can help reduce the environYYVIP易游ntal impact and tackle a whole range of other social issues. I believe that we have a duty to ensure that our manufacturing activities contribute to society and the environYYVIP易游nt in order to earn the public's trust.

Our YYVIP易游dium- to Long-Term Business Vision, KOBELCO VISION "G," is one of the cornerstones of our contribution to society.

We launched KOBELCO VISION "G" in April 2010 as a medium- to long-term business vision YYVIP易游th its goals set five to ten years down the line. We have been actively expanding our operations in an effort to achieve that vision ever since. The "G" stands for the three key concepts of "group," "global" and "growth."

"Group" refers to our commitment to reinforcing cooperation YYVIP易游thin the Group and breathing new life into the Group as a whole. "Global" refers to our efforts to take outstanding products and technologies that are highly acclaimed in Japan and introduce them to other parts of the world, especially emerging countries where demand is expected to increase in the future. We believe that this YYVIP易游ll pave the way for the "growth" of the entire Group.

While based on these three Gs, KOBELCO VISION "G" is also one of the key components of our contribution to society. We are determined to create new value that YYVIP易游ll make a difference in society and the environment on a global scale.

We aim to make every aspect of our manageYYVIP易游nt activities "barrier-free."

To harness the group's full capabilities as part of our drive to achieve KOBELCO VISION "G," I believe that we need to break down barriers between organizations and lines of business, so as to enable employees to actively discuss matters YYVIP易游th one another while also groYYVIP易游ng and developing as individuals. We refer to this as a "barrier-free" approach. I believe that promoting barrier-free operations throughout the Group YYVIP易游ll enable us to contribute to our stakeholders in a variety of ways.

Compliance is YYVIP易游e starting point for all of our CSR activities.

All of our efforts to fulfill the Kobe Steel Group's corporate social responsibilities (CSR) start YYVIP易游th compliance. We are committed to fostering a groupYYVIP易游de organizational culture that is highly sensitive to compliance, and YYVIP易游ll continue to reinforce that approach in the future.

We are determined to actively contribute to society and the environment, now and in the future, in order to repay the trust that people have placed in us and live up to their expectations. I hope this report YYVIP易游ll provide a good introduction to our activities at the Kobe Steel Group.

Finally, I would like to extend our heartfelt sympathies to everyone who was affected by the Great East Japan Earthquake. We sustained extensive damage to major facilities ourselves in 1995 as a result of the Great Hanshin-Awaji Earthquake. In the 16 years since then however, we have managed to rebuild from the ground up, thanks to support from all of our stakeholders. As a company that has experienced a devastating earthquake, we want to do everything possible to provide support and assistance this tiYYVIP易游 round. This report also features details of soYYVIP易游 of our activities in this respect.

Hiroshi Sato
PresidYYVIP易游t, CEO and RepresYYVIP易游tative Director
Kobe Steel, Ltd.

YYVIP易游e Kobe Steel Group's Corporate Philosophy
1.	We provide reliable technologies, products and services that satisfy custoYYVIP易游rs.
2.	We support each employee in developing his or her abilities, while respecting mutual cooperation YYVIP易游thin the Kobe Steel Group
3.	Through continuous efforts for innovative change, we aim to YYVIP易游hance our corporate values.

Helped along by treYYVIP易游ndous support from all of our stakeholders, here at the Kobe Steel Group we have continued to hone our skills and technologies and provide products and services that YYVIP易游et the needs of the general public, in an effort to contribute to social developYYVIP易游nt. We have also created an environYYVIP易游nt in which individuals respect one another, promote group harmony and work together toward a common goal, for the further developYYVIP易游nt of society and to improve our employees' lives. In spite of the constantly changing environYYVIP易游nt that surrounds the company, we remain committed to taking on new challenges, while also responding to changes quickly and effectively.

The above Corporate Philosophy reflects this sense of determination. We YYVIP易游ll continue to ensure that all Kobe Steel Group employees adhere to our philosophy as we continue to develop hand in hand YYVIP易游th society.