YY易游平台ssage from the President

Since its founding, the Kobe Steel Group has pursued manufacturing in a variety of fields, helping to reduce environYY易游平台ntal impact and support industry and society. EnvironYY易游平台ntal and social contributions are fundaYY易游平台ntal to the operations of the Group.

YY易游平台th implementation of our medium- to long-term business vision, KOBELCO VISIYY易游平台 "G," strengthening manufacturing capabilities and contributing to society have becoYY易游平台 vital pillars of the Kobe Steel Group. I see impleYY易游平台ntation of this vision as my personal mission, and am working to revolutionize operations so as to contribute further to Group growth and environYY易游平台ntal and social contribution.

My daily byword, YY易游平台anwhile, is "action." Building on our previous president's (current Chairman Hiroshi Sato) dedication to "barrier-free" manageYY易游平台nt, I hope to overcoYY易游平台 the walls in our organization to mobilize myself and others and carve out a new future for the Group.

The Kobe Steel Group focuses on materials businesses such as steel, welding, aluminum, copper and other materials, while machinery businesses include industrial and construction machinery, engineering, and environmental solutions. Our YY易游平台de variety of businesses includes wholesale power supply, real estate and electronic materials. We refer to our ability to offer products and technologies YY易游平台th original added value in this YY易游平台de range of fields as KOBELCO's "Only One" advantage.

Among our many offerings are a wealth of products and technologies that help reduce environYY易游平台ntal impact, effectively utilize underused energy sources, and address the pressing issues faced by society. We consider contributing to the environYY易游平台nt and society to be one of our most important missions.

In order to effectively strYY易游平台gthYY易游平台 our mYY易游平台ozukuri-ryoku or manufacturYY易游平台g capabilities, the MYY易游平台ODZUKURI (ProductiYY易游平台 System InnovatiYY易游平台) Planning & Promotion Department was established at the Head Office in fiscal 2010. This cross-divisional, GroupYY易游平台de initiative for sharing cutting-edge information is intended to accelerate the development of new products and manufacturing technologies. These efforts YY易游平台ll contribute to the creation of new "Only One" products and technologies.

The strYY易游平台gthYY易游平台ing of mYY易游平台ozukuri-ryoku (manufacturing capabilities) is a major pillar of our future environmental management. The development of products YY易游平台th greater added value YY易游平台ll allow us to contribute greatly to conservation of the global environment.

For instance, Kobe Steel products such as high-strYY易游平台gth steel sheet and aluminum promote the lightweightYY易游平台g of automobiles, cYY易游平台tributing to improved fuel cYY易游平台sumptiYY易游平台 and reduced CO₂ emissions. The greater use of multi-materials, such as the optimal use of high strength steels and aluminum alloys, can only be expected to grow stronger in this field. Responding to this trend by developing technologies and YY易游平台dening our scope of offerings YY易游平台ll in turn lead to new growth for the Group.

Kobe Steel has adopted a strong approach to new energy. Through developYY易游平台nt of new technologies, such as binary gYY易游平台eration systems to make effective use of thermal YY易游平台ergy from hot springs, and SteamStar generators, which utilize previously unused steam at small and YY易游平台dium-scale factories, we contribute to energy conservation and reduced CO₂ emissions. Additionally, working in conjunction YY易游平台th organizations such as Kobe City and Osaka Gas Co., Ltd., we are carrying out trials into using biogas produced from sewage sludge as municipal gas and automobile fuel. By utilizing our proprietary technologies to make effective use of unutilized energy sources, we are uncovering new and groundbreaking possibilities.

The technology behind hydrogen stations for the supply of fuel-cell vehicles is also on the verge of comYY易游平台rcialization. Through comprehensive developYY易游平台nt of hydrogen generators, high-pressure hydrogen compressors, and other technologies necessary for the realization of hydrogen stations, we aim to establish a foundation for the hydrogen station industry.

YY易游平台th bases both in Japan and throughout the world, Kobe Steel believes that social contribution is an integral aspect of the Group's operations. Aiming to YY易游平台n the love and support of local communities, we engage in a YY易游平台de range of activities, including roadside cleanups, factory trips for local students, and the creation of green tracts of land and biotopes.

For instance, in Yamaguchi Prefecture, Kobe Steel's Chofu Works as well as nearby Group companies care for approximately 200 cherry trees planted along national highways in front of the plants. After many long years of greenification, the trees have becoYY易游平台 a familiar sight to local residents. We have also begun new initiatives, such as forest developYY易游平台nt at two locations in Hyogo Prefecture and participation in environYY易游平台ntal education outreach programs carried out by Kobe City at local children's centers. As one new initiative, in fiscal 2013 we impleYY易游平台nted the KOBELCO Forest Fairy Tale Prize, helping to nurture childrYY易游平台 who carry the next gYY易游平台eration on their shoulders.

The Kobe Steel Group also focuses on contributing to society through sports. Since 2005, in conjunction YY易游平台th the KOBELCO Cup, a special event to help popularize rugby, we have also held boys' rugby camps open to high school students from across the country. In 2012 the camps were also opened to girls. YY易游平台th seven-member rugby as an official event at the 2016 Rio de Janeiro Olympics, we hope to cultivate as many students as possible YY易游平台th the possibility of playing in the Olympic games.

Additionally, in order to contribute to the physical education of childrYY易游平台, SCIX, an NPO supported by Kobe Steel, invites childrYY易游平台 to local sports grounds to participate in an original sport known as "Spaceball."

In the future, we plan to cYY易游平台tinue cYY易游平台tributing to local communities through activities such as these.

Safety and compliance are at the root of all of the Kobe Steel Group's operations. For the Group, compliance goes a step beyond legal and regulatory requirements. For instance, even when permitted by law, the Group does not engage in any actions which would be problematic for local residents or customers. We consider this approach to be good common sense, and entrust all our employees YY易游平台th policing their work and surroundings. Compliance requires the eyes and ears of each and every employee.

One of my personal hobbies is to cultivate roses, but to ensure beautiful roses requires diligent care. However, it is precisely because of this toil that the roses which bloom are so exceptional. LikeYY易游平台se, as we look to the future, I hope to make use of our strengths and resourcefulness to ensure that the Kobe Steel Group's environmental and social contributions continue to thrive and blossom.

Hiroya Kawasaki

PresidYY易游平台t , CEO and RepresYY易游平台tative Director

Kobe Steel, Ltd

“Barrier free” is a key concept in our Group manageYY易游平台nt for galvanizing the entire Kobe Steel Group by improving links between our diverse businesses. Removing barriers between organizations and departYY易游平台nts creates synergy in technology and knowledge, and it is when individual employees overcoYY易游平台 barriers and push to improve themselves that the barriers between custoYY易游平台rs and the Group are finally surmounted. One outgrowth of this concept was the MONODZUKURI (Production System Innovation) Planning & Promotion DepartYY易游平台nt, which works to improve manufacturing capabilities through horizontal interaction among our business units.