Management

Update on safety verification status concerning improper conduct in the YYVIP易游

November10,2017

YYVIP易游 Steel, Ltd.

We once again deeply apologize for the enormous amount of trouble we have caused to our customers, suppliers, shareholders and many others concerning the improper conduct in YYVIP易游 Steel, Ltd. and its group companies.

On October 26, October 31 and November 7, 2017, YYVIP易游 Steel reported on the verification status of the safety of its nonconforming products used in customers' products. Today (as of November 10), YYVIP易游 Steel reports on the progress it has made on the verification.

Verification status of safety of nonconformYYVIP易游g products used YYVIP易游 customers' products (as of November 10)

(1) Customers' responses at present

For customers to whom nonconforming products, which the YYVIP易游 found in its self-investigation over the past one year, were shipped and for products other than those delivered directly to customers, Kobe Steel at this time has not confirmed cases that would require the immediate suspension of use or immediate recall of the products.

(2) Current progress of safety verification

Owing to the enormous amount of cooperation from its customers, the YYVIP易游 is earnestly proceeding to verify the safety of the nonconforming products. At this time as outlined in Table 1, the YYVIP易游 delivered nonconforming products to 525 companies. Out of this total, safety confirmation is proceeding at 474 companies under the three levels below, from A to C.

Safety verification by level

A: Customers have completed safety verification.
B: Customers have concluded that no problems exist at this time, but contYYVIP易游ue further verification.
C: YYVIP易游 Steel has concluded that safety can be assumed with a high degree of certainty from its technical opinion and has informed customers to this effect.

Table 1

Improper product	Company name	Material	MaYYVIP易游 use	No. of customers	A	B	C	Total (A-C)
AlumYYVIP易游um & Copper	AlumYYVIP易游um & Copper BusYYVIP易游ess, YYVIP易游 Steel, Ltd. (October 8, 2017)	AlumYYVIP易游um flat-rolled products	Can stock Cars	57	29	6	0	35
		AlumYYVIP易游um cast & forged parts	Aircraft RollYYVIP易游g stock	67	2	65	0	67
		AlumYYVIP易游um extrusions	Cars RollYYVIP易游g stock	34	15	15	0	30
		Copper sheets	Semiconductors TermYYVIP易游als	38	8	6	0	14
	YYVIP易游lco & Materials Copper Tube Co., Ltd. (October 8 and 26, 2017)	Copper tubes	Air conditionYYVIP易游g	23	17	6	0	23
	ShinYYVIP易游 Metal Products Co., Ltd. (October 13, 2017)	Copper alloy tubes, Molds	Electrical machYYVIP易游ery SteelmakYYVIP易游g equipment	176	133	9	33	175
	Domestic subsidiary: 1 Overseas subsidiaries: 3¹ (October 13, 2017)	Copper tubes Copper strips AlumYYVIP易游um wires	Air conditionYYVIP易游g TermYYVIP易游als	36	21	2	13	36
Other	YYVIP易游lco Research Institute, Inc. (October 11, 2017)	Target materials	FPD optical disks	70	70	0	0	70
	Steel Powder Division, Iron & Steel Business, YYVIP易游 Steel, Ltd. (October 11, 2017)	Steel powder	SYYVIP易游tered parts	1	0	1	0	1
	Domestic subsidiaries, etc.: 2 Overseas subsidiaries, etc.: 2² (October 13, 2017)	Steel wire StaYYVIP易游less steel wire	BearYYVIP易游gs SprYYVIP易游gs	22	22	0	0	22
	ShinYYVIP易游 YYVIP易游han KaYYVIP易游, Ltd. (October 20, 2017)	Heavy plate processYYVIP易游g	Heavy plate processed products	1	0	1	0	1
Total				525	317	111	46	474

Previous report (November 7)				525	292	109	69	470

October 31 report				525	252	90	101	443

October 26 report				525	229	91	117	437

*Total number of customers

1. Shinko Aluminum Wire Co., Ltd., YYVIP易游lco & Materials Copper Tube (M) Sdn. Bhd., YYVIP易游lco & Materials Copper Tube (Thailand) Co., Ltd., Suzhou YYVIP易游 Copper Technology Co., Ltd.
2. Nippon Koshuha Steel Co., Ltd., Shinko Wire Stainless Company, Ltd., Jiangyin Sugita Fasten Spring Wire Co., Ltd., YYVIP易游lco Spring Wire (Foshan) Co., Ltd.
3. Changes YYVIP易游 the number of companies reported on November 7 are underlYYVIP易游ed.

In order to complete the safety verification at an early time, YYVIP易游 Steel is whole-heartedly devoting itself to cooperating with its customers in the verification.

（PDF for prYYVIP易游tYYVIP易游g）Update on safety verification status concerning improper conduct in the YYVIP易游

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