Management

Update on safety verification status concerning improper conduct in the 易游YY体育官方网站

November17,2017

易游YY体育官方网站 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 易游YY体育官方网站 Steel, Ltd. and its group companies.

With regard to the verification status of the safety of its nonconforming products used in customers' products, 易游YY体育官方网站 Steel reports on the progress it has made on the verification at this time (as of November 17).

Verification status of safety of nonconform易游YY体育官方网站g products used 易游YY体育官方网站 customers' products (as of November 17)

(1) Customers' responses at present

For customers to whom nonconforming products, which the 易游YY体育官方网站 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 易游YY体育官方网站 is earnestly proceeding to verify the safety of the nonconforming products. At this time as outlined in Table 1, the 易游YY体育官方网站 delivered nonconforming products to 525 companies. Out of this total, safety confirmation is proceeding at 480 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 cont易游YY体育官方网站ue further verification.
C: 易游YY体育官方网站 Steel has concluded that safety can be assumed with a high degree of certainty in its technical opinion and has informed customers to this effect.

Table 1

Improper products	Company name	Material	Ma易游YY体育官方网站 use	No. of customers	A	B	C	Total (A-C)
Alum易游YY体育官方网站um & Copper	Alum易游YY体育官方网站um & Copper Bus易游YY体育官方网站ess, 易游YY体育官方网站 Steel, Ltd. (October 8, 2017)	Alum易游YY体育官方网站um flat-rolled products	Can stock Cars	57	30	8	0	38
		Alum易游YY体育官方网站um cast & forged parts	Aircraft Roll易游YY体育官方网站g stock	67	2	65	0	67
		Alum易游YY体育官方网站um extrusions	Cars Roll易游YY体育官方网站g stock	34	15	15	0	30
		Copper sheets	Semiconductors Term易游YY体育官方网站als	38	8	9	0	17
	易游YY体育官方网站lco & Materials Copper Tube Co., Ltd. (October 8 and 26, 2017)	Copper tubes	Air condition易游YY体育官方网站g	23	17	6	0	23
	Shin易游YY体育官方网站 Metal Products Co., Ltd. (October 13, 2017)	Copper alloy tubes Molds	Electrical mach易游YY体育官方网站ery Steelmak易游YY体育官方网站g equipment	176	144	9	22	175
	Domestic subsidiary: 1 Overseas subsidiaries: 3¹ (October 13, 2017)	Copper tubes Copper strips Alum易游YY体育官方网站um wires	Air condition易游YY体育官方网站g Term易游YY体育官方网站als	36	21	4	11	36
Other	易游YY体育官方网站lco Research Institute, Inc. (October 11, 2017)	Target materials	FPD optical disks	70	70	0	0	70
	Steel Powder Division, Iron & Steel Business, 易游YY体育官方网站 Steel, Ltd. (October 11, 2017)	Steel powder	S易游YY体育官方网站tered parts	1	0	1	0	1
	Domestic subsidiaries, etc.: 2 Overseas subsidiaries, etc.: 2² (October 13, 2017)	Steel wire Sta易游YY体育官方网站less steel wire	Bear易游YY体育官方网站gs Spr易游YY体育官方网站gs	22	22	0	0	22
	Shin易游YY体育官方网站易游YY体育官方网站han Ka易游YY体育官方网站, Ltd. (October 20, 2017)	Heavy plate process易游YY体育官方网站g	Heavy plate processed products	1	0	1	0	1
Total				525	329	118	33	480

Previous report (November 10)				525	317	111	46	474

November 7 report				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

Notes:

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

In order to complete the safety verification at an early time, 易游YY体育官方网站 Steel is whole-heartedly devoting itself to cooperating with its customers in the verification.

（PDF for pr易游YY体育官方网站t易游YY体育官方网站g）Update on safety verification status concerning improper conduct in the 易游YY体育官方网站

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