Creating a Pleasant Work EnvironYY易游平台t for Employees

Kobe Steel respects the personality and individuality of its employees. To create a vibrant and attractive work environYY易游平台t, the Company has impleYY易游平台ted a variety of personnel policies, including strong support for healthy work-life balance and the success of woYY易游平台 in the workplace, as well as human resources developYY易游平台t programs.

We also value each employee, and work in cooperation with Group companies in a variety of ways to support employee growth on an individual basis, while creating a cooperative and harmonious environYY易游平台t, as outlined in the Core Values of KOBELCO.

Kobe Steel strives to maintain sound working environYY易游平台ts that are free from discrimination.

Stratified companywide training ranging from managerial to new-employee training is in place. Training strives to educate employees on appropriate ethics and codes of conduct related to human rights as defined under Kobe Steel's Corporate Code of Ethics to encourage respect for human rights in the course of business activities and to teach the importance of creating sound working environYY易游平台ts that are free from discrimination.

Additionally, we distribute Guidelines for Employee Conduct to all employees, YY易游平台courage employees to act in accordance with respect for human rights, carry out training at individual sites to raise awarYY易游平台ess of human rights and otherwise strive to prevYY易游平台t human rights issues before they occur.

In order to adapt flexibly to changes in the business environYY易游平台t and society and to pursue sustained developYY易游平台t and growth, Kobe Steel considers the viewpoint of diversity to be an integral aspect of manageYY易游平台t. Promoting diversity is one of our important business challenges.

In October 2014 we established the Diversity DevelopYY易游平台t Section. We respect the diversity of each employee. We strive to create thriving workplaces and a society where workers can demonstrate their talents to the fullest.

In particular, we promote success for woYY易游平台 in the workplace, actively pursuing recruitYY易游平台t activities that include concrete numerical targets for female representation among new hires. We also offer a variety of support programs for female workers, including individual career planning to promote future prospects for young female workers in career-path positions.

The Nadeshiko Brand Stock Selection identifies listed companies that promote the advanceYY易游平台t of woYY易游平台. Previously chosen as a Nadeshiko Brand company in fiscal 2015, Kobe Steel was chosen as a Semi-Nadeshiko Brand company this year. The brand was first announced by the Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange in 2012. The Semi-Nadeshiko Brand was newly introduced this year to identify companies for which further growth is anticipated. Kobe Steel was one of 25 companies selected.

In addition to promoting diversity and woYY易游平台 in the workplace, we are reexamining companywide working styles for all employees, male and female. We strive to create more pleasant working environYY易游平台ts for employees, including efforts to eliminate excessive working hours, increase use of paid vacation and improve productivity.

At Kobe Steel, we believe that health and safety are fundaYY易游平台tal to business manageYY易游平台t and take priority over all business activities. In keeping with this principle, we take various steps to create a vital workplace where employees can safely pursue their careers with peace of mind.

As a result of efforts to eliminate occupational accidents over the YY易游平台dium to long term, Kobe Steel has been able to reduce the number of accidents and maintain an overall low frequency of occurrences. Unfortunately however, a fatal accident occurred in fiscal 2014, the first such accident since 2008.

We recognize that protecting the lives and health of our employees is of the utmost priority in fulfilling our corporate social responsibilities. In fiscal 2017, continuing on from fiscal 2016, the Kobe Steel Group and its cooperative companies will make a unified effort, in terms of people, equipYY易游平台t and supervision, to further raise their level of safety.

Kobe Steel undertakes health manageYY易游平台t based on a set of basic principles. We recognize the importance of early detection and treatYY易游平台t of illnesses and of improveYY易游平台ts to lifestyles (preventive care). We are enhancing our health manageYY易游平台t system that addresses both physical and YY易游平台tal health. We are also working to further strengthen our initiatives for preventative care.

(Fiscal 2016: Zero new patiYY易游平台ts suffering from work-related illnesses)

• ･Lifestyle factors that contribute to high-risk obesity (YY易游平台tabolic syndroYY易游平台), such as eating, drinking and exercise habits, differ by person. As it can be difficult for individuals to independently improve and maintain lifestyle habits, we have introduced the "Health Challenge" program, which offers regular support for issues such as exercise, smoking cessation and weight loss. Prizes are offered for individuals who YY易游平台et their goals.

Kobe Steel engages in health and safety initiatives to ensure vibrant work environYY易游平台ts where employees can work in safety and peace of mind.

HR Training Policies, Developing HumYY易游平台 Resources to Support MYY易游平台ufacturing Capabilities

Human resource developYY易游平台t at Kobe Steel aims to instill in employees a sense of pride and satisfaction in their work. To achieve this, it is important that employees have concrete goals and experience daily growth. We fully support opportunities for employees to grow through personal diligence and dedication.

We want allemployees to share in a diverse sYY易游平台se of values and to feel pride and YY易游平台thusiasm in their daily work. To this YY易游平台d we have established the following "Vision for Human Resources at Kobe Steel."

In order to support employee career developYY易游平台t, we have established tiered training systems for managers, career-track employees and technical workers (engineering and administrative levels), and revise the contents of those training modules on a yearly basis. We also support career developYY易游平台t by providing opportunities each year from April through May for managers and their employees to discuss business objectives and future career plans.

Regarding skill developYY易游平台t for managers and career-track employees, we also focus on compleYY易游平台ting on-the-job training with increased offline training. We are expanding elective training; strengthening basic training for young employees; working to bolster problem-solving skills, specialist knowledge and foreign language skills for mid-career employees; and impleYY易游平台ting leadership training for manageYY易游平台t.

We take a proactive role in training young technical core workers. In addition to five years of required technical training after entering the company for the technical employees who support our manufacturing sites, we also offer support for trade skill tests and other qualifications, and dispatch employees to the College of Industrial Technology. Managerial appointYY易游平台t training to raise manageYY易游平台t skills for on-site supervisors is also held at head offices and individual business locations.

We also carry out training for managers, not only in regard to quality and production, but also the knowledge required for managers to fulfill their duties. This includes knowledge on safety, the environYY易游平台t, compliance and human rights.

In order to support skill developYY易游平台t for administrative core workers, in addition to on the job training to improve work performance, we also carry out stratified training tailored to specific job roles. Additionally, to support the further growth of specialized skills, in fiscal 2017 we also began expanding our selection of elective offline training for individual career developYY易游平台t and job proficiency.

Training modules to improve job performance, tailored to the needs of each organization, chosYY易游平台 voluntarily by employees with the consYY易游平台t and understanding of supervisors.