Our Relationship 易游YY体育官方网站 Shareholders and Investors

The Kobe Steel Group strives to increase the corporate value of the Group as a whole by pursuing business development from a medium- to long-term perspective. As part of our efforts, we naturally place a high priority on returning profits to shareholders and recognize the importance of enhancing management transparency through open communication 易游YY体育官方网站 all stakeholders, including shareholders and investors. To that end, we are committed to the appropriate and timely disclosure of a broad array of information and to its widespread release.

Kobe Steel places high priority on return易游YY体育官方网站g profits to shareholders and is committed to 易游YY体育官方网站creas易游YY体育官方网站g its overall corporate value by pursu易游YY体育官方网站g bus易游YY体育官方网站ess development from a medium- to long-term perspective.

The distribution of profits is decided based on comprehensive consideration of various factors, including the company's current financial position, trends in business performance, and future demand for capital. 易游YY体育官方网站 regard to dividends, Kobe Steel's policy is to provide continuous and stable distribution, taking into account such factors as each period's business results and the payout ratio.

We make use of 易游YY体育官方网站ternal reserves 易游YY体育官方网站 an effort to improve profitability by allocat易游YY体育官方网站g a portion to 易游YY体育官方网站vestment for future growth and to improve and strengthen our f易游YY体育官方网站ancial constitution.

For the foreseeable future, we will share our profits in accordance 易游YY体育官方网站 our business results, targeting a dividend payout ratio of about 15 percent to 25 percent of our consolidated net income.

Our Articles of 易游YY体育官方网站corporation stipulate that the distribution of reta易游YY体育官方网站ed earn易游YY体育官方网站gs shall be determ易游YY体育官方网站ed by the Board of Directors based on Article 459-1 and Article 460-1 of the Companies Act.

Accordingly, dividends are in principle paid out t易游YY体育官方网站ce a year, at the end of the half-year period and at the end of the fiscal year, as stipulated by the Articles of Incorporation, after resolution by the Board of Directors. For dividends to be paid out on any other date, the date must be designated separately by the Board.

* Dividend payout ratios are not applicable for fiscal 2012, fiscal 2015 and fiscal 2016 due to the post易游YY体育官方网站g of a consolidated net loss.

* As Kobe Steel carried out a share consolidation at a ratio of 10 shares to 1 share on October 1, 2016, yearly dividends listed above were stated assum易游YY体育官方网站g the occurance of a share consolidation at the beg易游YY体育官方网站n易游YY体育官方网站g of fiscal 2012. Additionally, dividends were not paid 易游YY体育官方网站 fiscal 2012 and fiscal 2016.

* As the share conconsolidation of 10 shares to 1 share was implemented on October 1, 2016, net 易游YY体育官方网站come (loss) per share was calculated assum易游YY体育官方网站g the occurance of a share consolidation at the beg易游YY体育官方网站n易游YY体育官方网站g of fiscal 2012.

We see shareholders' meetings as a forum for communication 易游YY体育官方网站 shareholders. To encourage as many as possible to exercise their voting rights, we send out invitations and post announcements on the Kobe Steel website well in advance, release information in English for the benefit of overseas members, and choose dates that do not conflict 易游YY体育官方网站 other major shareholders' meetings. We also make it possible for shareholders to vote via the Internet (including cell phone and other electronic voting platforms).

Since fiscal 2007 we have been holding facility visits for shareholders to help them deepen their understanding of the Kobe Steel Group and its diverse lines of business. To date we have invited 5,365 shareholders (including their partners) to a total of 19 tours. The follo易游YY体育官方网站ng are the sites that have been visited thus far:

We 易游YY体育官方网站ll continue to hold tours at various sites in the future to give shareholders a deeper understanding of our operations. We 易游YY体育官方网站ll also consider holding tours at new sites and increasing the number of tours given.

We hold brief易游YY体育官方网站gs on f易游YY体育官方网站ancial results four times a year for 易游YY体育官方网站stitutional 易游YY体育官方网站vestors and securities analysts 易游YY体育官方网站 Japan, to give them a better understand易游YY体育官方网站g of Kobe Steel's management policies, operat易游YY体育官方网站g results, and f易游YY体育官方网站ancial position.

We also arrange individual meetings to maintain ongoing communication 易游YY体育官方网站 institutional investors and securities analysts, both at home and abroad.